The Table Given Below Shows the Price, Marginal Revenue and Marginal

question 110

Multiple Choice

The table given below shows the price, marginal revenue and marginal cost of a monopolist at different levels of the output. The firm does not incur a fixed cost of production.Table 11.4

-One of the popular myths about monopoly is that:

• A)a monopolist is the single seller of a particular commodity.
• B)a monopolist can charge any price for his/her good.
• C)a monopolist is a price maker.
• D)a monopolist may earn positive profits even in the long run.
• E)a monopolist faces the market demand curve.

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Definitions:

Standard Costs

Predetermined costing used in budgeting and decision-making, representing an expected cost under normal conditions.

Overhead Volume Variance

The difference between the budgeted overhead based on standard hours allowed and the actual overhead incurred, due to differences in activity levels.

Unfavorable Labor Efficiency Variance

A financial term indicating that the actual labor time to produce goods or services was higher than the budgeted or standard labor time, resulting in increased costs.

Variance Report

A document that compares planned financial outcomes to actual financial outcomes, highlighting differences (variances) for analysis.