Which of the Following Is Most Likely to Contribute to the Presence

question 41

Multiple Choice

Which of the following is most likely to contribute to the presence of monopoly in an industry?

• A) economies of scale
• B) an elastic market demand for the product produced by the industry
• C) inefficiency due to bureaucratic decision-making procedures in the industry
• D) controlling over 50 percent of the market

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Definitions:

Overhead Rate

A measure used to allocate overhead costs to products or services, often calculated by dividing total overheads by a base measure such as labor hours or machine hours.

Estimated Labor-Hours

The projected number of labor hours required to complete a batch of goods or provide a service.

Predetermined Overhead Rate

A rate used to allocate estimated overhead costs to products or job orders, based on a planned level of activity or driver.

Unused Capacity

Resources available for use that are not being employed in production, often representing inefficiency.