Which of the Following Are Necessary Characteristics of a Monopoly

question 329

Multiple Choice

Which of the following are necessary characteristics of a monopoly? i) The firm is the sole seller of its product.
Ii) The firm's product does not have close substitutes.
Iii) The firm generates a large economic profit.
Iv) The firm is located in a small geographic market.

• A) i) and ii) only
• B) i) and iii) only
• C) i), ii), and iii) only
• D) i), ii), iii), and iv)

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Definitions:

Fair Value Option

The fair value option is an accounting choice that allows companies to record certain financial assets and liabilities at their fair market value to provide a more relevant measurement of their financial position.

Unrealized Gains

Increases in the value of an investment that have not been realized through a sale and thus are not reflected in the entity's income.

Goodwill

An intangible asset representing the excess value of a business beyond its physical assets and liabilities, often arising from brand reputation, customer relationships, or intellectual property.

Net Assets

The total assets of a company after deducting its total liabilities, representing the owners' equity in the company.