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4 years ago

How are start-up costs related to natural monopolies?

2 answers:

5 0

The right answer for the question that is being asked and shown above is that: "The government offers companies money for start-up costs to prevent natural monopolies." start-up costs related to natural monopolies is that The government offers companies money for start-up costs to prevent natural monopolies.

Zanzabum4 years ago

4 0

The correct answer is A. High start-up costs prevent others from offering the same service in a natural monopoly.

Explanation:

In the economy, natural monopolies occur when only one company or provider offers a service or product due to natural barriers to compete. One of the most important factors that lead to monopolies is high start-up costs, because if companies or individuals are unable to cover costs of infrastructure and technology then they cannot offer certain services.

An example of this is railways because for a company to offer this service it requires a lot of infrastructures, technology, workers, etc. and therefore the start-up costs or initial cost stop many companies from offering this service letting only one company to do this and therefore creating a monopoly. Thus, start-up costs are related to natural monopolies because "High start-up costs prevent others from offering the same service in a natural monopoly".

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make an adjusting entry to debit Interest Receivable and to credit Interest Revenue for the amount of interest accrued since the last interest receipt date.

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Adjusting entries are used at the end of an accounting period to assign income and expenses that has accrued.

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3 years ago

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3 years ago

According to empirical research, in countries where stockholders' rights are strong, firms issue ____ stock than in countries wh

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According to empirical research, in countries where stockholders' rights are strong, firms issue More stock than in countries where stockholders' rights are weak. Researchers conclude that strong stockholders' rights reduce moral hazard in stock markets.

Explanation

A Moral hazard is said to have occurred when one party (i.e insured Party) increases its exposure to risk ,because some other party bears the cost of those Risk.It reflects the tendency of a person to take more risk as the consequence of the risk taken has to be beard by some other party

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3 years ago

The Allowance for Bad Debts account had a balance of $8,500 at the beginning of the year and $7,200 at the end of the year. Duri

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The total amount of past-due accounts receivable that were written off as uncollectible during the year were: $17,300

Explanation:

The amount of past-due accounts receivable that were written off as uncollectible during the year are calculated by following formula:

Past-due accounts receivable that were written off as uncollectible = The Allowance for Bad Debts account had a balance at the beginning of the year + Bad debts expense was recognized - The Allowance for Bad Debts account had a balance at the end of the year = $8,500 + $16,000 - $7,200 = $17,300

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4 years ago