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3 years ago

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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A market economy cannot produce a socially desirable outcome because individuals are motivated by their own selfish interests.

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B it false
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3 years ago

True or false: in situations where an annual budget deficit exists, cutting expenses from the budget is optimal.

My name is Ann [436]

The statement in situations where an annual budget deficit exists, cutting expenses from the budget is optimal is True.

<h3>What is budget deficit?</h3>

Budget deficit tend to occur when the expenses or expenditure is higher then the revenue.

Cutting down expenses from the budget is most desirable if we want to have budget surplus. Budget surplus is when revenue is higher than expenditure.

Therefore the statement in situations where an annual budget deficit exists, cutting expenses from the budget is optimal is True.

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1 year ago

What is the purpose of AH&LA ?

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3 years ago

Use the graph to answer the question that follows. Graph has quantity along the horizontal axis and price along the vertical axi

Jlenok [28]

The statement that would describe the shift from D1 to D2 is Demand for the product increased.

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D2 is a curve that is to the right of D1 which means that it represents a higher level of demand for goods and services.

This means that for the demand to move from D1 to D2, there must have been an increase in the demand for the good or service and this could have been for any number of reasons including a reduction in the price of complimentary goods.

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1 year ago

X Company purchased a patent on January 3, year 7 from Y Company for $145,000. An attorney drew up the contract between X &

Setler79 [48]

Answer:

The carrying value of the patent on X company on December 31 is $122,000

Explanation:

Computing the carrying value of the patent is as:

The total cost of the patent which will be recognized is as:

Total cost of patent = Purchased cost + Attorney value

where

Purchase cost is $145,000

Attorney cost will be divided into 2, so

Attorney cost = $15,000 / 2

= $7,500

So,

Total cost of patent = $145,000 + $7,500

Total cost of patent = $152,500

Now, amortize the patent over the useful life of patent as:

Amortize value = Patent cost / Useful life

Amortize value = $152,500 / 10

Amortize value = $15,250

But X held the patent for 2 years, so its accumulated amortization is:

Accumulated amortization = Amortize value × 2

= $15,250 × 2

Accumulated amortization = $30,500

Now, the carrying value will be:

Carrying value = Total cost of patent - Accumulated depreciation

Carrying value = $152,500 -$30,500

Carrying value = $122,000

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3 years ago