Ramsons Manufactures Binoculars

question 33

Multiple Choice

Ramsons manufactures binoculars.Although the binoculars are priced unreasonably high, Ramsons manages to sell a large number of units each year because Ramsons is the sole supplier of binoculars in the market.This is an example of:

• A)a monopoly.
• B)an oligopoly.
• C)monopolistic competition.
• D)pure competition.
• E)more price competition.

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Definitions:

Variable Cost

A cost that varies with the level of output, including expenses such as materials and labor directly tied to the production volume.

Units Sold

The cumulative amount of a product sold over a designated time frame.

Period Costs

Expenses that are not directly tied to production and are accounted for in the period in which they are incurred, such as selling and administrative expenses.

September

The month that appears as the ninth in the sequence of months in the Gregorian calendar.