Which of the Following May Characterize a Monopoly

question 9

Multiple Choice

Which of the following may characterize a monopoly?

• A)Substantial market power.
• B)Low barriers to entry.
• C)Many firms.
• D)Differentiated product.

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Definitions:

Labour Efficiency Variance

A measure used in accounting to indicate the difference between the actual number of labor hours used and the standard number of hours that should have been used, multiplied by the standard labor rate.

Variable Overhead

Costs that vary with the level of production or business activity, such as utilities and indirect materials, but do not directly correlate to direct labor or materials.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead costs incurred and the expected (or standard) costs, based on efficient usage of resources.

Actual Labour Hours

The real amount of labor time spent by employees on the production of goods or provision of services.