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Tcecarenko [31]
2 years ago
8

The following graph shows the demand (D) for cable services in the imaginary town of Utilityburg. The graph also shows the margi

nal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local cable company, a natural monopolist.
On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity for this natural monopolist.


Which of the following statements are true about this natural monopoly? Check all that apply.

The cable company must own a scarce resource.
In order for a monopoly to exist in this case, the government must have intervened and created it.
The cable company is experiencing diseconomies of scale.
The cable company is experiencing economies of scale.
True or False: Without government regulation, natural monopolies can earn positive profit in the long run.

True
False

Business
1 answer:
alexdok [17]2 years ago
5 0

The true statement about this natural monopoly is that It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers.

  • Also, it is a true statement that natural monopolies can earn positive profit in the long run without the government regulation.

<h3>What is a natural monopolies?</h3>

This refers to the type of monopoly that exists in a particular market if a single firm can serve that market at lower cost than any combination of two or more firms.

It mostly occurs when when the most efficient number of firms in the industry is one. Also, a natural monopoly will ideally have very high fixed costs implying that it is impractical to have multiple firms producing the good.

A very good example of a natural monopoly is the case of tap water.

Hence, the true statement about this natural monopoly is that It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers and it is a true statement that natural monopolies can earn positive profit in the long run without the government regulation.

Therefore, the answers are Option B and True.

Read more about natural monopoly

brainly.com/question/13113415

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4. What are the main political and economic risks that ABB must deal with given that it has a strong focus on entering emerging
Yuki888 [10]

The main political and economic risks which ABB <em>must deal with</em> given that it has a strong focus on <em>entering emerging economies </em>is:

  • The stability of the national government

According to the given question, we are asked to state the  main political and economic risks which ABB <em>must deal with</em> given that it has a strong focus on <em>entering emerging economies.</em>

As a result of this, we can see that when a company or an organisation wants to do business in a new and emerging economy in a county, the major political and economic risks which they have to consider is the stability of the national government so that their business would not be suddenly affected by government policies or wars.

Read more about national government here:

brainly.com/question/9261004

5 0
2 years ago
Consider a small country that is closed to trade, so its net exports are equal to zero. The following equations describe the eco
viva [34]

Answer:

Y = 300

government multiplier 2

output demanded increase by 20

If income tax is applied:

Y = 272.72

multipliers: 2.253775

increase 22.53775 billons

As disclosure it has a larget effect when the income tax is levied based on income rather than a flat rate.

Explanation:

DI = Y - 100

C = 30 + 0.6(Y - 100)

C = 30 - 60 + 0.6Y

C = 0.6Y - 30

Y = C + G + I

Y = (0.6Y -30) + 120 + 30

Y = 120 / 0.4 = 300

C = (0.6)300 - 30 = 150

With C we solve for the multiplier:

150/300 = 0.5

1 / (1 - 0.5) = 2

10 x 2 = 20

If variable that:

C = 30 + 0.6 (0.75Y)

C = 30 + 0.45Y

Y = 0.45Y + 120 + 30

Y = 150/.55 = 272,72

C = 30 + 0.45Y = 152,72

Propensitivity to consume:

152.72/272.72 = 0,5563

multiplier:

1 (1 - PMC) = 2.253775073

10 nillon will icnrease x 2.25377 = 22.54 billons

8 0
3 years ago
Identify whether each the following transactions is a primary market or a secondary market transaction: Jim Henry bought 500 sha
slamgirl [31]

Answer:

Jim Henry bought 500 shares of I.B.M. through a broker.

  • SECONDARY MARKET TRANSACTION

Peggy White bought 500 shares of Apple from another investor.

  • SECONDARY MARKET TRANSACTION

New York Life Insurance Co. bought 500,000 shares of Tioga Corp when the company issued the stock.

  • PRIMARY MARKET TRANSACTION

Primary market transactions that place when an investor purchases securities at the time the corporation or entity issued them, e.g. if you purchased Amazon's stocks at their IPO (or any other time new stocks were issued), it was a primary market transaction. But if you purchased Amazon's stocks at any other time, it is a secondary market transaction. Almost all the transactions carried out everyday are secondary market transactions.

5 0
3 years ago
Assume that the interest rate on borrowings in india is 1 percent while the interest rate on bank deposits in a u.s. bank is 6 p
BARSIC [14]
Those who try to benefit from a carry trade are hoping to borrow money at a low interest rate so that they can invest in something that will provide a higher return. People commonly do this between different foreign exchange markets to make the most on their return from investing in different country currencies. 
3 0
3 years ago
One would expect a sports team who continues to add players to its roster (beyond the minimum required to "field a team") to eve
yawa3891 [41]

Answer:

Diminishing marginal product of labor.

Explanation:

Remembering the law of diminishing marginal product which states that by additing unit of labour, while keeping other factors constant would over time lead to lesser output of labour.

Thus one may expect a sports team who continues to add players (additional unit of labour) to its roster above the minimum in the field would eventually not lead to increase efficiency in the field since other factors are kept constant such as increase training for players.

7 0
3 years ago
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