Which of the Following Is Not a Reason for the Existence

question 92

Multiple Choice

Which of the following is not a reason for the existence of a monopoly?

• A)patents
• B)marginal-cost pricing
• C)economies of scale
• D)trademarks

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Definitions:

Period Costs

Expenses that are not directly tied to the production of goods and are instead allocated to the time period in which they are incurred.

Controllable Costs

Expenses that a manager or business unit has the authority to influence or change in the short term.

Product Costs

Costs that are directly associated with the manufacturing of goods including materials, labor, and overhead.

Administrative Costs

Expenses related to the management and general operations of a business, including salaries of senior executives, legal and accounting services.