Which of the Following Is True

question 64

Multiple Choice

Which of the following is true?

• A)Monopolists never lose money in the short-run or long-run.
• B)Monopolies can only be overcome by government action.
• C)Having a recognizable brand name is a barrier to entry that can preserve monopoly power.
• D)Patents are granted to investors who have control over an essential resource.

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Definitions:

Variable Costing

An accounting approach where only variable manufacturing costs are included in product costs, excluding fixed manufacturing overhead.

Fixed Costs

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

Absorption Costing

An accounting method that includes all manufacturing costs, both fixed and variable, in the cost of a product.

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.