Answer:
a. economies of scale.
Explanation:
Local electricity companies generally have natural monopolies resulting from both economies of scale and/or control of natural resources. Economies of scale refers to the average total costs decreasing as the total output generated by the company increases. For example, it is extremely expensive to generate electricity for 1 single home, but the average total cost for generating electricity for 1 million homes is very low. Generally utilities are monopolies because it is very expensive to set and start operating the company, but once it is operating its average costs per consumer are very low.
Answer:
Correct answer:
A. True
Explanation:
When procurement of goods and services is to be made from another country, it is expected that, it should be open and done in full view showing other competitors. <em>This is to prevent fraud, such as the marking up of the price of goods or outright false declaration of the procurement prices.</em>
Answer:
The answer is
Income inelastic
The chocolate is a normal good.
Explanation:
First lets find the percentage increase or decrease in income and demand.
For income:
($2,200 -$1,800)÷$1,800
=$400÷$1,800
=0.2222 or 22.22%
For the demand
(21cups-19cups)÷19cups
=0.1053 or 10.53.
A 22.22% increase in income leads to 10.53% in demand of hot chocolate. This means it is less proportional. The demand is less sensitive to his income.
The hot chocolate is a normal good. If not an increase in income would have resulted to a lower demand for hot chocolate.
The appropriate response is Advertising plan. An Advertising plan is an advancement plan that, when taken after, gives the bearing to organizations and organizations to support deals, make mindfulness in the market, and draw in with an altogether new client base.
Answer:
A shift in the demand curve will create a new equilibrium point.
Those who voluntarily purchase the generators believe them to be worth the marked-up price.
The effect of price ceilings is to make behavior like the entrepreneur’s illegal.
Explanation:
As after hurricane there is a necessity to buy the generators, accordingly the demand for the generators increase and so does the price, therefore, there is a new equilibrium.
And as there is need, people voluntarily buying it would definitely feel it worth to spend and pay such exaggerated price.
If there will be price ceilings then the entrepreneur will try to sell the generators at high prices illegally because he need to get the margin.
Although there will be no surplus even in case of price ceilings as it is a need people will buy and the stock will be sold at last.
