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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!

Read more about X bar chart

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4 0

2 years ago

A company forecasts free cash flow in next year to be $20 million, $25 million in second year, and 30 million in third year. Aft

Norma-Jean [14]

Answer:

Current value from operations is $534.71 million.

Explanation:

The value from operations can be calculated by discounting back the free cash flow of the firm. The first three year's FCF will be discounted back using the WACC and when the growth rate o FCF becomes constant after Year 3, the terminal value will be calculated and discounted back too.

The current value from operations = FCF1 / (1+WACC) + FCF2 / (1+WACC)² + FCF3 / (1+WACC)³ + [FCF3 * (1+g) / WACC - g] / (1+WACC)³

Current value from operations = 20 / (1+0.1) + 25 / (1+0.1)² + 30 / (1+0.1)³ + [30 * (1+0.05) / (0.1 - 0.05)] / (1+0.1)³

Current value from operations = $534.71 million

8 0

3 years ago

Read 2 more answers

Assume that subway tokens are $1.50 today and the price will go up to $2.00 tomorrow. how many tokens would you buy?

Ivan

The number of tokens to be purchased will depend on the purchasing power of my present capital.

<h3>What is a subway tokens?</h3>

It means those metal or plastic disk that can be redeemed, used in designated slot machines which are mostly used to pay for entry to the subway system.

Despite that the effect of inflation could push the subway tokens which are $1.50 today to go up to $2.00, the number of tokens to be purchased will depend on the purchasing power of my present capital.

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7 0

2 years ago

Daniel has to prepare a report outlining the reasons why his company is going to shut down two factories in the united states. h

timurjin [86]

The inductive method is also sometimes called a scientific method. The method starts off by stating many observations of nature then arriving to the conclusion. The goal is to find a few and powerful ending statement based on the previously stated individual reasons.

6 0

3 years ago

On December 1, Christy Co. accepted a 60-day, 6%, $1,000 note due January 30. On December 31, the appropriate year-end adjusting

muminat

Answer:

Entry for the repayment involve a Debit of Note Payable of $1,060 and a Credit of Cash of $1,060.

Explanation:

By January 30 , 2 months interest would have expired and the journal entries are as follows :

December 31

Interest expense $30 (debit)

Note Payable $30 (credit)

January 30

Interest expense $30 (debit)

Note Payable $30 (credit)

Thus the <em>repayment will be at the carrying cost </em>of the note payable as follows :

Note Payable $1,060 (debit)

Cash $1,060 (credit)

Conclusion :

Entry for the repayment involve a Debit of Note Payable of $1,060 and a credit of Cash of $1,060.

3 0

4 years ago