A Firm Such as a Public Utility,which Is the Sole

question 17

Multiple Choice

A firm such as a public utility,which is the sole producer in a market in which government determines prices and standards of service,is known as a(n) :

• A)local monopoly.
• B)natural monopoly.
• C)regulated monopoly.
• D)oligopoly.
• E)monopolistically competitive firm.

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Definitions:

Wages

Payments made to employees for their labour or services, typically calculated on an hourly, daily, or weekly basis.

Direct Materials

The raw materials directly traceable to the production of specific goods or services, considered a variable cost.

Period Cost

Expenses that are not directly tied to the production of goods, such as selling, general, and administrative expenses, which are expensed in the period incurred.

Factory Maintenance Equipment

Tools, machinery, and other equipment used for the upkeep of a manufacturing facility.