Which of the Following Statements Is True of a Monopoly

question 277

Multiple Choice

Which of the following statements is true of a monopoly firm?

• A) A monopoly firm is a price taker and has no supply curve.
• B) A monopoly firm is a price maker and has no supply curve
• C) A monopoly firm is a price maker and has a downward-sloping supply curve.
• D) A monopoly firm is a price maker and has an upward-sloping supply curve.

---

Definitions:

Predetermined Overhead Rate

calculates an estimated overhead cost per unit of activity, aiding in assigning indirect costs to products or services.

Plantwide Predetermined Overhead Rate

A single overhead rate calculated for an entire manufacturing plant, applied to all units produced irrespective of department or product differences.

Job-Order Costing System

A cost accounting system that assigns costs to specific production batches or jobs, useful for customized orders.

Direct Labor-Hours

The amount of labor time consumed by workers who are directly engaged in the manufacturing of products, serving as a critical factor in costing and production planning.