An Important Difference Between a Perfectly Competitive Firm and a Monopolist

question 331

Multiple Choice

An important difference between a perfectly competitive firm and a monopolist is

• A) the size of the firms.
• B) the shape of the demand curve each faces.
• C) the goals of the owners of the firms.
• D) a monopolist normally produces a service, while a perfect competitor normally produces a good.

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Definitions:

Adjusting Entry

An accounting record entry made at the conclusion of an accounting period to distribute income and expenses to the correct period.

Purchased

The act of acquiring goods or services in exchange for money, often recorded in accounting as an increase in assets or expenses.

Insurance Policy

A contract between an insurer and a policyholder specifying the claims which the insurer is legally required to pay in exchange for an upfront premium.

Adjusting Entry

A journal entry made at the end of an accounting period to record unrecognized income or expenses, ensuring the financial statements are accurate.