Which of Following Is True of Monopoly and Not of Perfect

question 76

Multiple Choice

Which of following is true of monopoly and not of perfect competition?

• A)Profit is maximized where marginal cost equals marginal revenue
• B)The industry demand curve is also the firm's demand curve
• C)Normal profits are made only if average total cost equals average revenue
• D)Profit is maximized in the elastic portion of the demand curve
• E)the firm has no control over the market price

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Definitions:

Direct Labour

The wages paid to workers directly involved in the production of goods or services, considered a variable cost.

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services.

Net Operating Income

The total profit of a business after operating expenses are subtracted from gross profit but before deducting interest and taxes.

Contribution Margin

The amount of revenue remaining after deducting variable costs, which can be used to cover fixed costs and contribute to profit.