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2 years ago

What is a natural monopoly?

Business

1 answer:

Lubov Fominskaja [6]2 years ago

6 0

Answer:

D. A monopoly that results when one firm is able to produce at a lower cost than multiple firms, giving large firms with higher levels of output an advantage over smaller competitors.

A. Municipal Power Light, the local supplier of electricity.

Explanation: A natural monopoly is a monopoly enjoyed by a firm due to its large nature through which it is able to enjoy Economies of scale and produce at a reduced cost which other companies are unable to meet up with.

WITH A NATURAL MONOPOLY, A FIRM HAS A CONTROL OVER THE PRICE OF THE PRODUCT PRODUCED AND SERVICE RENDERED AS THERE ARE NO CLOSE SUBSTITUTE.

The municipal Power light, the local supply of power is an example of a firm that can enjoy Natural monopoly.

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LMN Insurance Company is concerned about its exposure to hurricane losses for property risks it insured on the Gulf Coast. LMN b

ELEN [110]

Answer:

c) Catastrophe Bonds

Explanation:

These type of bonds are also known as the CAT bonds, and they are issued at any catastrophic event which is foreseen in the future. Basically these are insured linked securities that are used in the process of managing risks that are associated with the catastrophic events such as mentioned in the question i.e hurricane.

Any investor before investing in these bonds should fully understand what type of bonds are these because they posses a greater risk of low return and are very different from conventional bonds.

Hope this helps.

Thanks buddy.

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3 years ago

Baron Corporation has two sequential processing departments: Assembly and Shaping. The Shaping Department reports the following

Oksana_A [137]

Answer:

Concerteza é a letra "B"

Explanation:

Espero que esteja errado, mas espero ter ajudado!

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3 years ago

When joan got transferred to a new city, she went there ahead of the rest of her family and independently shopped for and purcha

d1i1m1o1n [39]

Joan's decision would be described as a "heuristic decision"

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3 years ago

Sam and Lisa run a catering business in which they have two major tasks: getting new clients and preparing food for events and p

igomit [66]

Answer:

In this scenario, LISA has both an absolute advantage in food preparation, and LISA has a comparative advantage in food preparation.

Assume that initially, Sam and Lisa are splitting both tasks for a large number of events. Then they decide to start shifting some work according to the principle of comparative advantage. In particular, the person with the comparative advantage in food preparation will take over preparing food for one more event, and the other person will use the freed-up time to get more clients. As a result, the total number of events for which food is prepared will remain unchanged, but the number of new clients will increase by 1.

Before they were getting 3 new customers since Sam got 2 and Lisa 1, but since Sam will only look for clients, then the total number of clients will be 4 (or 1 more).

Explanation:

It takes Sam 12 hours to prepare the food for an event and 3 hours of effort to get each new client.

Sam's opportunity cost of preparing food = 12/3 = 4 new clients
Sam's opportunity cost of getting new clients = 3/12 = 0.25 of food preparation

For Lisa, it takes 10 hours to prepare food for an event and 5 hours to get a new client.

Lisa's opportunity cost of preparing food = 10/5 = 2 new clients
Lisa's opportunity cost of getting new clients = 5/10 = 0.5 of food preparation

7 0

2 years ago

Suppose the government imposes a price ceiling above the equilibrium price of a given good. d)Which of the following is the most

r-ruslan [8.4K]

Answer:

c)No change will occur in the market.

Explanation:

A price ceiling above the equilibrium price is a non binding price ceiling and it does not affect the market. No change in supply or demand occurs.

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2 years ago