The net present value would be zero.
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Answer: US Air Force and Navy
Explanation:
Answer:
a. $(8000)
b. Company should choose alternative 1 and make bottles.
Explanation:
Particulars Make Bottles Buy Bottles Differential
Alternative 1 Alternative 2
Purchase Price 0 $37 $(37)
Freight Charges 0 $4 $(4)
Variable cost $33 $33
Fixed Cost $17 $17 0
Cost per unit $50 $58 $(8)
Income / (Loss) $50,000 $58,000 $(8,000)
b. The company should choose alternative 1 and make bottles. The buying of bottles will cost company loss of $8,000.
Answer & Explanation
Monopoly is where in the market there is only one seller in the market has a certain product where no other seller has. It my be goods or services but there is no substitute. This means that the owner of such a product is in full control of his/her supply. The main or the greatest impact of monopoly in the market may favors the the seller only while on the other the side the consumer may be pressed. This mostly occurs when it comes to pricing because a monopoly has potential to rise prices. This is due to lack of competition in the market. An example of monopoly in the united states in the past was :
Standard Oil company - This was an oil producing company which was producing,transporting,refining and marketing oil. It was incorporated under Standard Oil Trust which handled all oil production, transportation, refinement, and marketing. Holds 91% of oil production and 85% of its final sales in the United States Market in the early 1900s. The main sources of of monopoly were that to join into a certain industry it was very expensive so this became a main barrier.
