Answer: True
Explanation: Because the company is the sole supplier of electricity in this market, they have all the market power. Market power is the ability the company has to manipulate the market by influencing prices, the level of supply it provides and thus the demand within that market. Companies within markets such as these are known as "price makers", because they are able to change prices of their goods without losing market share.
Because the public utilities company is the sole provider of electricity within this market, they have no pressure or competition from other suppliers within the market. Therefore they have the market power to freely charge higher prices by limiting the supply of electricity. Or charge lower prices by over supplying electricity to consumers.
Answer:
D. slopes upward
Explanation:
if Judy experiences diseconomies of scale this means the return for adding further factor into the economy decreases. Therefore the marginal cost increase more than the marginal revenue from the added factor.
His average cost curve will shift upwards. Each time Judy adds equipment and workers his cost increase more than the previous worker or equipment.
<u>Resuming:</u>
Producing an additional units is more expensive than the previous unit therefore, the average cost increases through units output.
Answer:
$71,000
Explanation:
The computation of operating income is shown below:-
Total costs if company bought = Cost of production × Outside supplier per unit) + (Fixed cost × Remaining percentage)
= (43,000 × $3.80) + ($68,000 × (100% - 30%))
= (43,000 × $3.80) + ($68,000 × 70%)
= $163,400 + $47,600
= $211,000
Loss in Income if part is bought = Total costs if company bought - Total costs originally
= $211,000 - $140,000
= $71,000
Therefore, Making profit will be more by $71,000 and for computing the Loss in Income if part is bought we simply applied the above formula.
Answer:
$81,020
Explanation:
The cost of the asset includes the cost of purchase less any given discount or tax returns and the addition of other cost incurred in making the asset available for use.
As such, the cost of the machine
= $77,000 - (5% * $77,000) + $2,000 + $4,520 + $1,350
= $81,020
The routine maintenance cost is not a part of the asset but an expense in p/l.
Answer:
We need the slope of each category.
Explanation:
Having the amount of each category is not enough to find the responsive of each one of them to a change in their prices, we need a measure called elasticity, this indicator measures the responsive of a product to a change in its price.
