The Following Is a Difference Between a Monopolist and a Perfectly

question 43

Multiple Choice

The following is a difference between a monopolist and a perfectly competitive firm:

• A)output is maximized when MR =MC
• B)at some point there will always be diminishing returns to the marginal input.
• C)the marginal cost curve is usually U-shaped
• D)at equilibrium price is usually higher than marginal cost

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Definitions:

Gross Amount

The total sum before any deductions are made, such as taxes or discounts.

Merchandise

Merchandise encompasses the goods and products that a retail business purchases to then sell to its customers.

Lower of Cost

An accounting principle requiring that inventory be recorded at the lower of its historical cost or market value if the market value drops below cost.

Net Realizable Value

The estimated selling price in the ordinary course of business, minus the estimated costs of completion and the estimated costs necessary to make the sale.