Answer:
D) The firm receives more than 70 percent of its income from rents and other passive sources.
Explanation:
Many small corporations change from C corporations to S corporations since S corporations eliminate the double taxation issues. Although S corporations have some limitations specially regarding the number of stock owners (currently limited to 100) and their nationality or legal residence status. They can only issue one type of stock which limits their ability to increase capital. S corporations cannot have more than 70 percent of their income from passive sources (this includes rent).
Answer: the producer will charge a price that is more than $3.
Explanation:
Monopolistic competition is an industry characteristics whereby there are several firms that sell goods or services that can't be called perfect substitute but are identical.
Based on the above information, since marginal revenue and marginal cost equals $3, the producer will charge a price that is more than $3. This is necessary to cover up its cost.
Natural monopoly tends to serve a whole market exclusively.
<h2>What is Natural Monopoly?</h2>
A natural monopoly is a sort of monopoly that frequently arises as a result of the high start-up costs or considerable economies of scale of operating a business in a particular industry, which can result in significant barriers to entry for potential competitors. In a certain sector or region, a corporation with a natural monopoly might be the exclusive supplier of a given good or service. In industries that need specialized technology, raw materials, or other elements to function, natural monopolies may develop.
<h3>Key Features of Natural Monopoly</h3>
- A natural monopoly is a special kind of monopoly that develops when there is only one company that can effectively provide the service in a particular area due to high start-up costs and considerable economies of scale.
- A business with a natural monopoly may be the exclusive supplier of a good or service in a given sector or region.
- Natural monopolies are permitted when one firm can provide a good or service for less money than any potential rival, but they are frequently very tightly controlled to safeguard consumers.
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The reason could be that they want a higher education. 4 year degree is more rewarding than a 2 year degree. they want a higher education so they can get a better job that pays them even more. thats my opinion. remember this has to do more with money. the more you prepare yourself the more money you are able to get.
