Answer: B. TC = 50 + 20Q
Explanation:
A Natural Monopoly is generally associated with a firm that has very high initial fixed costs. These costs are generally related to the use of high scale technology or machinery to operate effectively.
Some examples include, gas pipelines, electricity grids, and the like.
They act as both a deterrent for companies to join the market as well as to exit.
Option B shows the typical Total Cost function of a Natural Monopoly and reflects the high initial costs as well.
Answer:
An increase in the minimum wage:
d. decreases the quantity of labor demanded but increases the quantity of labor supplied.
Explanation:
An increase in the minimum wage impact negativly in the demand of labor because each hour it's now more expensive than before, it means that company will looks to reduce their number of headcont due to an increase in each hour of labor existing, all of these just to keep the company cost at the same level.
The increase in the quantity of labor supplied it's favorable because a lot of people will be motivated to look for a job because the company will have to pay better salaries than before, on this escenario more people will go to the market labor looking for a job.
This increase in the labor supply is for those who were not willing to work under the previous salary conditions.
Explanation:
We can define the sales mix as the proportion of products sold in a company. A calculation is made to establish the proportion of sales of a particular product and how profitable it is for a company. The calculation is performed according to the productive capacity of the company and the need of consumers for a given product.
By knowing the sales mix, you can determine the breakeven point, which corresponds to the point at which total cost and total revenue are equal.
When there is a change in the sales mix, it significantly affects the breakeven point because different products have different expenses, contribution margins, and selling price, so any change in the sales ratio of a given product will impact the breakeven point.
Answer:
Firms at the greatest risk of expropriation are in extractive, agricultural, or infrastructural industries such as utilities and transportation.
Explanation:
Governments are more interested in this kind of business, as often, in developing countries, <em>extractive</em> and <em>agricultural</em> create genuine richness, usually more than others as <em>retail</em> or <em>manufacturing</em>, for example. On the other hand, regarding <em>utilities</em> and <em>transportation</em>, expropriation is made as a consequent of populism measures and not for wealth creation.
<span>The pizza is a neutral good. A neutral good is a good whose demand is not changed even though the income provided by the good is changed. A person's income can go either up or down, but their desire to buy more or less of Jamal's pizza will not change, so pizza sales will not go up or down. Demand and income are not tied to each other.</span>
