Will U.S. policy makers let themselves be spooked by financial phantoms and bullied by business intimidation?

Suppose that the government decides to regulate this natural monopolist by requiring the firm to charge a price of P2. Which is

Natali5045456 [20]

If the government takes this approach, consumer surplus would increase.

A monopoly is when there is only one firm operating in an industry. A natural monopoly occurs when there is a high start-up cost associated with opening a business or a firm enjoys economies of scale.

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good. As the price of a good declines, consumer surplus increases. P2 is lower than P1, this means that if price is regulated to P2, consumer surplus would increase.

Please find attached the graph required to answer this question. To learn more, please check: brainly.com/question/15415230

7 0

3 years ago

Vibrant Company had $980,000 of sales in each of three consecutive years 2016–2018, and it purchased merchandise costing $540,00

Ray Of Light [21]

Answer:

(1)$440,000 (2) due to this error in inventory it had an effect on both years 2016 and 2017 because closing inventory of previous year will be opening inventory of the subsequent year.

Explanation:

Solution

Given that:

(1) The correct amount of gross profit in each of the years 2016-18 is given as follows:

The Gross profit = Sales- purchases +closing inventory-Inventory at beginning

The Gross profit = $980,000-540,000+280,000-280,000 =$440,000

(2)The Comparative income statement to show the effect of error in cost of goods sold of vibrant company is shown below:

Particular 2016 2017 2018 3 years total

Sales $980,000 $980,000 $980,000 $2,940,000

Cost of goods sold

Purchases $540,000 $540,000 $540,000 $1,620,000

add :Beginning inventory:

$280,000 $260,000 $280,000 280,000

Less: Closing inventory:

($260,000) ($280,000) (280,000) (280,000)

Total Cost of goods sold:

$560,000 $520,000 $540,000 $540,000

Gross profit $420,000 $460,000 $440,000 $440,000

For this error in inventory it had an effect on both years 2016 and 2017 because closing inventory of previous year will be opening inventory of the subsequent year.

5 0

3 years ago

Importers' bank usually issues a ________ to importers in international transactions. sight draft letter of credit time draft bi

ira [324]

<span>Importers' bank usually issues a time draft to importers in international transactions.

A time draft is a form of payment guaranteed by the bank to be paid but is not paid in full until after the transaction is made. This helps insure someone is going to get paid but acts as a downpayment until the delivery is finished. These are commonly used in international trade transactions to stand as a "good credit" for the importer. </span>

6 0

3 years ago

Harrison is a manager at the local post office. He wants to find ways to improve worker motivation, and has read about the Hawth

riadik2000 [5.3K]

Answer:

TRUE

Explanation:

6 0

3 years ago

The apr of emilio's savings account is 3.2%, and interest is compounded quarterly. if emilio does not withdraw or deposit any ad

butalik [34]

The answer is 9601.19

5 0

4 years ago