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2 years ago

A natural monopoly, such as a local telephone company, is characterized by?

Business

1 answer:

Alika [10]2 years ago

6 0

A natural monopoly, such as a local telephone company, is characterized by economies of scale.

Economies of scale refers to the cost advantages which are experienced by companies as they grow and become more efficient.

An economy of scale is realized when any company increases in size and is able to spread out the cost of production over a larger number of units of a good.

Companies use economies of scale to maximize the efficiency of their production and the profits are maximized.

As the company produces more units of a good, the cost per unit goes down because operating and overhead costs get spread out over more units of the products which leads to the increased margins.

This is one reasons why a smaller company will charge more for a product than a larger company making the same product.

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Fitness Bands Corporation gathered the following information for Job #928: Standard Total Cost Actual Total Cost Direct materia

Eduardwww [97]

Question:

standard total cost Actual total cost

Direct material

Standard 2000 pints $3.50/pint $7,000

Actual 2,500 pints $5.00/pint $12,000

Answer:

Materials quantity variance= $1,750 unfavorable

Explanation:

Material quantity variance occurs when the actual quantity used to achieved a given level of output is more or less than the standard quantity.

It is determined by the difference between the actual and standard quantity of material for the actual level of output multiplied by the the standard price

pints

Standard quantity allowed 2,000

Actual quantity used 2,500

Quantity variance 500 unfavorable

Standard price $3.50

Materials quantity variance 1,750 unfavorable

Materials quantity variance= $1,750 unfavorable

8 0

3 years ago

QUESTION 4 / 10

Umnica [9.8K]

Answer:

C. The longer you use credit responsibly, the higher your

credit score will be.

Explanation:

A credit card allows its user to access a short term loan. Every payment made via a credit card is considered a loan. The loan attracts interest monthly. Defaulting on credit card payments is similar to defaulting on any other loan type.

Responsible use of a credit card entails using it only when necessary. It means making prompt payments to clear monthly bills.

Credit card history is important information when tabulating an individual's credit score. Anyone who uses their credit card responsibly ends up with a good credit score.

3 0

3 years ago

An investor in Treasury securities expects inflation to be 1.6% in Year 1, 3.05% in Year 2, and 3.85% each year thereafter. Assu

mixer [17]

Answer:

The difference between two securities is 0.89%.

Explanation:

Inflation premium for the next three and five years:

Inflation premium (3) = (1.6% + 3.05% + 3.85%) ÷ 3

= 2.83%

Inflation premium (5) = (1.6% + 3.05% + 3.85% + 3.85% + 3.85%) ÷ 5

= 3.24%

Real risk-free rate = 2.35%

Since default premium and liquidity premium are zero on treasury bonds, we can now solve for the maturity risk premium:

Three-year Treasury securities = Real risk-free rate + Inflation premium (3) + MRP(3)

6.80% = 2.35% + 2.83% + MRP(3)

MRP (3) = 1.62%

Similarly,

5-year Treasury securities = Real risk-free rate + Inflation premium (5) + MRP(5)

8.10% = 2.35% + 3.24% + MRP(3)

MRP (5) = 2.51%

Thus,

MRP5 - MRP3 = 2.51% - 1.62%

= 0.89%

Therefore, the difference between two securities is 0.89%.

4 0

3 years ago

Paige deposited $200 into a bank that offers 3.3% interest rate, compounded daily. In how many years will her balance be $400?

weeeeeb [17]

C ~~~ APEX
APEXXXXX

4 0

3 years ago

Read 2 more answers

Classical economists saw the depression as a political problem, not an economic problem. why?

navik [9.2K]

Classical economists saw the depression as a political problem, because they believed labor unions were stopping the wage level from moving to the right level.

<h3>Classical economists</h3>

The Classical economists believe that the great depression experience was as a result of as a political problem.

The reason why they believe it was political problem was because they felt the labor unions who is the union responsible for fight for the right of workers were the one that stop or prevent the wage level from moving to the right level.

Therefore they believed that labor unions were stopping the wage level from rising.

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5 0

2 years ago