A Single-Price Monopoly Can Sell 10 Units of Its Product

question 168

Multiple Choice

A single-price monopoly can sell 10 units of its product at a price of $45 each but to sell 11 units,the monopoly must cut the price to $44.What is the marginal revenue of the extra unit sold?

• A) $484
• B) $450
• C) $44
• D) $34
• E) -$1

Identify the components and preparation processes of the statement of financial position and the statement of changes in equity.

Comprehend the principles and guidelines under IFRS for recognizing revenue.

Understand the necessity and preparation of adjusting and closing entries before the production of financial statements.

Recognize the difference between cash and accrual basis of accounting and their implications on financial statements.

---

Definitions:

Consolidated Balance Sheet

A financial report that merges the assets, liabilities, and equity of a parent company with its subsidiaries, depicting them as one unified entity.

Identifiable Net Assets

Assets of an acquired company that can be clearly identified and valued at the time of acquisition.

Consolidated Balance Sheet

A financial statement showing the aggregated financial position of a parent company and its subsidiaries, providing a complete look at the total assets and liabilities.

Liabilities Section

A part of the balance sheet that lists obligations the company must pay to others, such as loans, accounts payable, and mortgages.