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Alex17521 [72]
3 years ago
11

A natural monopoly can occur when the average cost of making a good _____ a lot as output increases.

Business
2 answers:
Margaret [11]3 years ago
8 0

The answer is: Decreases

Natural monopoly refers to a type of monopoly that exist because the start up cost to start similar business is too high.

This could only occurs if there is a single company exist for a long period of time, to the point where it acquire enough assets to make the average cost of making their goods at the lowest point while maximizing their inputs.


Anon25 [30]3 years ago
5 0
A natural monopoly can occur when the average cost of making a good decreases a lot as output increases. Hopefully the demand goes up as well!
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Answer:

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Explanation:

7 0
3 years ago
The following section is taken from Blossom's balance sheet at December 31, 2021. Current liabilities Interest payable $ 40,500
aev [14]

Answer:

(a) Journalize the payment of the bond interest on January 1, 2022.

Dr Interest payable - bonds payable 40,400

    Cr Cash 40,400

The interest expense on the bonds payable should have been accrued on the 2021 balance sheet, that is why we debit interest payable and not interest expense.

(b) Assume that on January 1, 2022, after paying interest, Blossom calls bonds having a face value of $100,000. The call price is 103. Record the redemption of the bonds.

Dr Bonds payable 100,000

Dr Call premium 3,000

    Cr Cash 103,000

(c) Prepare the adjusting entry on December 31, 2022, to accrue the interest on the remaining bonds.

interest expense = $405,000 x 8% = $32,400

Dr Interest expense - bonds payable 32,400

    Cr Interest payable - bonds payable 32,400

3 0
3 years ago
Marmol Corporation uses the allowance method for bad debts. During year 1, Marmol charged $30,000 to bad debt expense, and wrote
4vir4ik [10]

Answer: Option (d)

Explanation:

Under this case the write off will be as follow:

                                                                      Debit         Credit

Allowance for doubtful accounts                25,200  

Accounts receivables                                                     25,200

Here, in this case the Allowance for the doubtful accounts and Accounts receivables are further decreased as the outcome of the transaction made. Thus, there will be no further effect on working capital. Therefore the $30,000 that is bad debt would then be stated as the credit to allowance account. This will then decrease the working capital by $30,000.

4 0
3 years ago
Which of the following is true when an economy produces at full employment, but consumers, government, businesses, and the forei
Art [367]

Answer:

When an economy produces at full employment, but consumers, government, there is a recessionary gap - Option B.

Explanation:

According to the Keynesian perspective, firms produce output only if they expect it to sell.

While the availability of the factors of production determines a nation’s potential gross domestic product (GDP), the amount of goods and services actually being sold, known as real GDP depends on how much demand exists across the economy.

Keynes termed a fall in the aggregate demand as a recessionary gap.

A recessionary gap refers to an economy operating at a level below its full-employment equilibrium. Under this condition, the level of real gross domestic product (GDP) is lower than the level of full employment, which puts downward pressure on prices in the long run.

Thus, when an economy produces at full employment, but consumers, government, there is a recessionary gap - Option B.

6 0
3 years ago
_____is best described as the process of selling a prototype of a product in either a real or simulated market environment.
Ipatiy [6.2K]

Answer: Test marketing

Explanation:

6 0
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