While in the short run an economic profit is more likely in an unregulated monopoly,<u> any of the above</u> may group competing resources and create a new power base to challenge the existing monopoly.
Unregulated monopolies have market power and can affect prices. Examples: Microsoft and Windows, DeBeers and Diamonds, and local natural gas companies. Individual restaurants and other products that enjoy "brand loyalty" in a highly competitive market choose prices and production in the same way as monopolies.
Unregulated monopoly: Standard calculations show that an unregulated monopoly produces y = 80 and the price is p = 60. AR (y) = (200y) / 2. y = 150 or 10. Therefore, there are two outputs, AC = AR: 10 and 150.
An unregulated monopoly provider is probably inefficient when it comes to allocations, as the price of a monopoly is higher than the MC. In a highly competitive market, prices will be lower and more consumers will benefit from purchasing goods. Monopoly leads to a loss of surplus welfare for consumers and producers.
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Answer:
No, you should not purchase the equipment if your interest rate is 10% because you would spent more money on the equipment than what you would save in labor costs.
Explanation:
First, you have to calculate the total amount that you would save in 8 years which is the result of multiplying the amount you save per year for the number of years:
$35,000*8=$280,000
Second, you have to calculate the total amount you would have to pay to purchase the equipment if your interest rate is 10% using the following formula:
A= P(1+rt)
A= accrued amount
P= principal amount: $200,000
r= rate: 0.1
t= time period: 8
A= 200,000*(1+(0.1*8))
A= 200,000*1.8
A= 360.000
According to this, in 8 years you would save $280,000 in labor costs but you would have to pay $360,000 for the equipment which means that you will pay more for the machine than what you would save in costs. Because of this, you should not purchase the equipment if your interest rate is 10%.
The Tribunal provided the maximum allowable penalty for the construction cartel members. In 2010, the Competition Tribunal imposed the allowed maximum penalty in the Competition Act for the Cartel Members of the concrete pipes industry. SPC and Conrite have 20 business days to pay their penalty.
Answer:
The preparation is presented below:
Explanation:
The preparation of the income statement for China Imports in the contribution margin format is shown below
Sales (7,500 units × $18) $135,000
Less: Variable cost (7,500 units × $10) ($75,000)
Contribution margin $60,000
Less: Fixed expenses per month (46,000)
Net operating income $14,000