One problem with government operation of monopolies is that the government typically has little incentive to reduce costs.
<h3>What is a monopoly?</h3>
A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. The demand curve is downward sloping. A monopoly sets the price for its goods and services.
An example of a monopoly is a utility company
Here is the complete question:
One problem with government operation of monopolies is that a. a benevolent government is likely to be interested in generating profits for political gain. b. the government typically has little incentive to reduce costs. C. a government-regulated outcome will increase the profitability of the monopoly. d. monopolies typically have rising average costs.
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Answer:
<h2>In the case of the salt,the salt buyers would bear most of the tax burden and for caviar,the sellers would bear most of the tax burden.Hence,the correct answer is option b. or buyers of salt and the sellers of caviar.</h2><h2 />
Explanation:
In the case of salt,the supply is more elastic than the demand which implies that the salt sellers are relatively more responsive to salt price change in the market.Therefore,if any tax is imposed on them,it would basically translate into higher production cost for the sellers and due to price elasticity of supply,the sellers would pass the tax to the salt consumers who are comparatively less price sensitive.Now,since the consumer demand for salt is inelastic and the consumers are relatively price insensitive,the consumers won't perhaps mind paying a higher market price for salt including the extra tax.Hence,in this instance,the tax burden would fall on the salt buyers or consumers.
On the other hand,based on the same line of argument,the tax burden would fall on the sellers of caviars as the price elasticity of caviar supply is less than that of the caviar demand.In this case,the caviar sellers are less sensitive about changes in market price of caviars and thus,won't mind paying a relatively higher production cost/expense which is inclusive of the tax burden.Due to higher price elasticity of demand or price responsiveness,the cavier consumers would be reluctant to bear the tax burden and pass it onto the sellers.
Answer:
<em>Entrepreneurs are people who take the risks of organizing productive resources to make goods and services. Profit is an important incentive that leads entrepreneurs to accept the risks of business failure.</em>
In the strategy implementation stage, there are certain things done to create and sustain a competitive advantage and this involves the definition of strategic goals.
<h3>What is Competitive Advantage?</h3>
This refers to the business situation whereby a company is able to outperform its competition.
Hence, we can see that when making strategic planning and implementation, there is the planning and making of contingencies for a meeting of set company goals to enhance the competitive advantage.
Read more about competitive advantages here:
brainly.com/question/26514848
If a drought ruins a significant amount of the coffee crop,
it is expected that the price of the coffee will rise. It is because if there
are less products or the less it produces, it causes the product to rise
because the product will be of demand by the consumers.
