Public Policy Responses to Monopolies

question 41

Multiple Choice

Public policy responses to monopolies:

• A) could aim to break up existing monopolies.
• B) always have more costs than benefits to society.
• C) always have more benefits than costs to society.
• D) never benefit society in the end.

---

Definitions:

Weighted-Average Method

A cost accounting method that calculates the cost of goods sold and ending inventory on the basis of the average cost of all similar items in inventory, irrespective of purchase date.

Conversion Costs

Costs incurred to convert raw materials into finished products, including labor and overhead expenses.

Process Costing

A costing method used for homogeneous products that are produced in a continuous process, allocating costs to units of product based on the processes they undergo.

Weighted-Average Method

This method computes the cost of goods sold and the value of ending inventory by taking the mean cost of every unit available for sale throughout the period.