To Have a Monopoly in an Industry There Must Be

question 188

Multiple Choice

To have a monopoly in an industry there must be

• A)barriers to entry so high that no other firms can enter the industry.
• B)a patent or copyright giving the firm exclusive rights to sell a product for 20 years.
• C)an inelastic demand for the industry's product.
• D)a public franchise, making the monopoly the exclusive legal provider of a good or service.

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Definitions:

Revenues

The total income generated from normal business operations and other activities.

Direct Labor Hours

The total hours worked directly on producing a product or delivering a service, often used as a basis for allocating manufacturing overhead to products or services.

Engineering Changes

Modifications to the design, materials, or specifications of a product or system, often made to improve performance, reduce costs, or correct defects.

Indirect Cost

Expenses not directly tied to the production of goods or services, such as administrative salaries, rent, and utilities.