Answer: It could limit how much the company charges customers.
It could insist a company get approval before making certain decisions.
A natural monopoly refers to a situation when one firm can cater to the entire market demand for a product. A natural monopoly can exist in an industry in because of high start-up costs, certain unique raw materials or processes or technologies that are required to run a business. In a natural monopoly, there is only one firm that benefits from very large economies of scale.
A government intervenes or regulates a natural monopoly primarily in order to protect consumer interests.
A natural monopoly has the power to raise the prices of its products as per its wish, since it is the only supplier of the product. Hence the government looks into the cost history of the firm and fixes regulation. The government can also set a price that a firm can exceed over a fixed period of time. This is known as a price cap regulation.
It is assumed that the natural monopoly will function in an economically rational manner. However, the government can insist that the natural monopoly get its approval before making certain decisions. This may occur due to a decision to decrease the quantity of goods produced.
Answer:
$41.69.
Explanation:
P9 = Next dividend / Required rate - Growth rate
P9 = $5 / 8% - 2%
P9 = $5 / 6%
P9 = $5 / 0.06
P9 = $83.33
So, the stock price for 9th year is $83.33
Current stock price = P9 / (1 + Required rate of return)
Current stock price = $83.33 / (1+0.08)^9
Current stock price = $83.33 / (1.08)^9
Current stock price = $83.33 / 1.9990046271
Current stock price = 41.68574643115692
Current stock price = $41.69
Therefore, the current stock price is $41.69.
Answer:
<h2>The answer, in this case, would be true or option a) given in the answer choices.</h2>
Explanation:
- In any business, an outside director is commonly identified as an individual who is officially not an employee or a shareholder of the company or business enterprise.
- An outside director can board meetings, analyze essential business information and interact and share opinions with the shareholders regarding company decisions and operational modes.
- The outside director is also eligible to receive certain financial benefits such a periodic annual fee and other stock/bond investment options.
Answer:
Explanation: The marketing mix consists of a number of factors that a producer usually exploits in order to influence consumers to purchase his/her products and services.
The marketing mix consists of:
- Product
- Price
- Place
- Promotion.
The above are usually called the 4Ps of marketing.
Of the four factors of the marketing mix, the factor that will the easiest for Lee to change will be the price.
This is because, often times, the price of a product or service will be the major determinant in the success of said commodity, and this is due to the fact that customers will compare the product being offered with its price in order to judge whether the product is worthy of the value placed on it.
Therefore, in order for Lee to influence the potential customers to make purchases, the price of the software program will be the easiest to be reviewed, and it should be set to a level where potential customers will be influenced to exchange their money for the software program.
