Possible Benefits of a Monopoly Include Which of the Following

question 14

Multiple Choice

Possible benefits of a monopoly include which of the following (choose all that apply) ?

• A) a savings of fixed costs because only one firm supplies quantity demanded.
• B) greater opportunities for research due to long-run positive economic profits.
• C) the government is better able to ensure that it follows laws and guidelines because there is only one firm to monitor.
• D) goods and services are provided at a lower price than under perfect competition because of a monopoly's decreasing average cost curve.

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Definitions:

Consolidation Worksheet

A tool used in accounting to prepare the financial statements of a parent company and its subsidiaries, merging their assets, liabilities, and other financial items into a single set of statements.

Fair Value

The financial return from selling an asset or expense for transferring a liability in a regulated exchange with market entities on the date of appraisal.

Goodwill

An asset lacking physical substance that comes into existence when a firm is bought for an amount that surpasses the fair value of its recognizable net assets.

Cash-Flow Contingency

A provision or reserve for potential changes in cash flow due to uncertain future events that might affect a company's financial health.