For a Market to Be Characterized by Monopoly, There Must

question 101

Multiple Choice

For a market to be characterized by monopoly, there must be

• A)a large number of firms with no one able to influence price.
• B)barriers to entry and exit.
• C)indistinguishable products being sold.
• D)good information about sales and costs.

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Definitions:

Fixed Expenses

Costs that do not change with the level of production or sales, such as rent and salaries.

Absorption Costing

A technique in accounting where all expenses from manufacturing, covering direct materials, direct labor, and overhead expenses variable and fixed, are included in the cost of a product.

Direct Materials

Raw materials that can be directly traced to the production of finished goods.

Fixed Costs

Expenses that do not change in total despite fluctuations in production levels or sales volume.