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1 year ago

Give an example of a natural monopoly industry operating in South Africa.

Business

1 answer:

MariettaO [177]1 year ago

4 0

An example of a natural monopoly industry operating in South Africa include "Eskom".

<h3>What is natural monopoly?</h3>

A natural monopoly occurs when there is an instance in which it is economically viable and better for a single entity to be in full and sole control of the production of a product or service.

Moreover, a natural monopoly is the fact that natural monopolies have extreme economies of scale. It can only start to become profitable when one single firm is able to service the majority of the market.

Learn more about natural monopoly, refer to the link:

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Quirch Inc. manufactures machine parts for aircraft engines. The CEO, Chucky Valters, was considering an offer from a subcontrac

Brilliant_brown [7]

Answer:

Supplier's quotation (2,400 x $6.25) 150,000

Less: Relevant cost of production:

Direct material (2,400 x $31) 74,400

Direct labour (2,400 x $18) 43,200

Variable overhead (2,400 x $9) <u>21,600</u> <u>139,200</u>

Savings <u> 10,800</u>

The parts should be produced in-house since the relevant cost of production is lower than supplier's quotation.

Explanation:

In this case, we need to compare supplier's quotation to the relevant cost of production. The price of $6.25 above was computed by dividing the total price charged by the supplier by the number of parts. Moreso, the relevant cost of production is obtained by the aggregate of direct material, direct labour and variable overhead.

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2 years ago

Ferris Corporation makes a powdered rug shampoo in two sequential departments, Compounding and Drying. Materials are added at th

masha68 [24]

Answer:

Materials = 44,000

Conversion = 40,800

Explanation:

<em>Step 1 Determine the Number of Closing Work In Process Units</em>

Closing Work In Process Units = Opening Work In Process Units + Units started in process - Units transferred out

= 6,000 + 38,000 - 36,000

= 8,000

<em>Step 2 Determine the equivalent units for March 2019</em>

<u>Materials :</u>

<em>Note : Materials are added at the be-ginning of the process, therefore Units Transferred Out and Closing Work In Process are 100% complete in terms of materials</em>

Closing Work In Process Units - 100% = 8,000

Units transferred out - 100% = 36,000

Total equivalent units = 44,000

<u>Conversion :</u>

<em>Note : Ending work-in-process was 60% processed, therefore 60% completed in terms of conversion costs</em>

Closing Work In Process Units - 60% = 4,800

Units transferred out - 100% = 36,000

Total equivalent units = 40,800

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2 years ago

If a firm's average total cost decreases as the firm increases its output, the firm's marginal cost must be

Arlecino [84]

Answer:

Less than average total Cost

Explanation:

Average total cost can be estimated as

(total fixed cost as well as variable costs )/ ( total units produced). It has a great impact on how a business is going to set up the price of their products. Marginal cost is can be regarded as alteration in total cost as a result of increase in unit of quantity produced. It should be noted that If a firm's average total cost decreases as the firm increases its output, the firm's marginal cost must be Less than the average total cost

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2 years ago

Which banker would a software company most likely visit for help to raise large amounts of capital to acquire, or buy out anothe

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It should be noted that the banker that would be visited to raise large amounts of capital is an investment banker.

<h3>Who is an investment banker?</h3>

It can be noted that an investment banker simply means a person that is involved in helping to raise capital for large corporations.

In this case, the banker that a software company most likely visit for help to raise large amounts of capital to acquire, or buy out another company is an investment banker.

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2 years ago

Accounting: A. measures business activities. B. is often called the language of business. C. processes data into reports and com

Anvisha [2.4K]

Answer: Is all of the above.

Explanation:

Accounting involves the process of taking accurate records of financial and non-financial activities of a business organization. Accounting is the language of business as it is needed for every business to succeed, also in accounting, records are kept that are useful in decision making.

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3 years ago