In many geographic areas, there is only a single provider for gas and electric service for businesses and consumers. However, the government regulates that firm to ensure price protection for the buyer. This is an example of
A. monopolistic competition.
B. pure competition.
C. a megopoly.
D. an oligopoly.
E. a pure monopoly.
Answer: E
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Financial statements issued for the use of parties external to the enterprise are the primary responsibility of the
a. management of the enterprise. b. stockholders of the enterprise. c. independent auditors of the enterprise. d. creditors of the enterprise.
If the level of activity increases,
a. variable cost per unit and total fixed costs increase. b. fixed cost per unit and total variable cost increase. c. total cost will increase and fixed cost per unit will decrease. d. variable cost per unit and total cost increase.
A cost pool should be made up of costs with a common cost object.
Answer the following statement true (T) or false (F)
Freemen Company's western territory's forecasted income statement for the upcoming year is as follows
Sales revenue $800,000 Variable costs 500,000 Contribution margin $300,000 Fixed costs 496,000 Operating income (loss) $(196,000 ) Freemen Company's management is considering dropping the western territory. This move would be financially advantageous only if the company could eliminate $196,000 of fixed cost. Indicate whether the statement is true or false