A Particular Industry Has Only a Few Competitors, Who Have

question 159

Multiple Choice

A particular industry has only a few competitors, who have at least some control over price. Entry into the industry is difficult. This industry is an example of ______.

• A) pure competition
• B) monopolistic competition
• C) an oligopoly
• D) a pure monopoly

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Definitions:

Variable Selling

Costs that fluctuate in direct proportion to changes in sales volume, such as commissions and shipping charges.

Manufacturing Margin

The excess of sales over variable cost of goods sold.

Contribution Margin

The amount by which sales revenue exceeds variable costs, contributing towards covering fixed costs and generating profit.

Variable Factory Overhead

Costs that vary with the volume of production and include expenses such as indirect materials and utilities.