If You Had a License for the Exclusive Right to Sell

question 254

Multiple Choice

If you had a license for the exclusive right to sell breakfast bagels in your community, your monopoly would result from:

• A) control of a scarce resource or input.
• B) technological superiority.
• C) increasing returns to scale.
• D) government-set barriers.

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Definitions:

Basis

The initial cost of an asset, adjusted for factors such as depreciation or improvements, used to calculate capital gains or losses for tax purposes.

Debt

Debt represents money borrowed by one party from another under the condition that it is to be repaid, usually with interest.

Basis of Stock

The original value of an asset for tax purposes, usually the purchase price, which is used to calculate capital gains or losses when the stock is sold.

Contributed Property

Property or assets given to a partnership or corporation by an owner or shareholder, often impacting the basis of the investment.