Monopolies Usually Keep Their Prices at a Level That Generate

question 175

Multiple Choice

Monopolies usually keep their prices at a level that generate a reasonable, but not excessive, return primarily because

• A)they want to avoid new competitors entering their market.
• B)they want to avoid government regulations on their pricing.
• C)they try to satisfy the demands of value-conscious consumers.
• D)firms can increase market share more rapidly this way.
• E)customers will discontinue use of these products if prices rise.

---

Definitions:

Balance Sheet

A financial statement that shows the company's assets, liabilities, and shareholders' equity at a specific point in time.

Asset

An economic resource owned or controlled by an individual or business, expected to provide future economic benefits.

Depreciation Expense

An accounting method of allocating the cost of a tangible or physical asset over its useful life.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, reducing its book value.