A Monopoly

question 167

Multiple Choice

A monopoly

• A) must determine the price it will charge.
• B) faces extensive competition from firms making close substitutes.
• C) cannot price discriminate because such a pricing strategy is illegal in the United States.
• D) has no control over the price it can charge.
• E) Both answers B and C are correct.

---

Definitions:

Statement Of Cash Flows

A financial statement that shows the cash inflows and outflows for a company over a period of time.

Noncurrent Assets

Long-term assets that are not expected to be converted into cash within one year, such as property, plant, and equipment.

Treasury Stock

Represents shares that were once part of the outstanding shares but were bought back by the company. These shares don't have voting rights or dividend rights.

Investing Activities

Transactions involving the acquisition and disposal of long-term assets and other investments not considered as cash equivalents.