All categories

3 years ago

What is a market that runs most efficiently when one large firm supplies all of the output referred to as?

Business

2 answers:

elena-s [515]3 years ago

8 0

The answer to this question is Natural monopoly.

gulaghasi [49]3 years ago

7 0

What is a market that runs most efficiently when one large firm supplies all of the output referred to as? Natural monopoly. A natural monopoly happens when there are high fixed costs or start-up costs when running a business in certain industries. A natural monopoly example are pipelines that run for water and gas. This is because they are expensive to start and run but also extremly necessary and specific to the industry.

You might be interested in

In accounting for a contingent liability, if the likelihood of the obligation is probable but the amount cannot be estimated, a

Tems11 [23]

Answer: d. provide disclosure in the footnotes to the financial statements.

Explanation:

A contingent liability is an obligation that a company might owe in future depending on the outcome of an event such as a law suit.

To record a contingent liability in the books, two conditions must be satisfied;

Loss must be probable
Amount must be estimable

If these two conditions are not satisfied then the contingent liability may simply be disclosed as a footnote in the financial statement. The amount here is not estimable so can be disclosed as a footnote.

6 0

3 years ago

Which of the following is not an example of safeguarding inventory? a.storing inventory in restricted areas b.returning inventor

Katen [24]

Answer: Option B

Explanation: Safeguarding inventory refers to keeping proper records of inventory and protecting it from any kind of damage that may result in loss to the organisation.

The main objective behind safeguarding inventory is to minimize loss of the organisation that is keeping it.

In the given case, second option is the purchase return and it could not be considered a default of the purchaser of inventory.

Hence from the above we can conclude that the correct option is B.

8 0

3 years ago

Why are public goods important

umka2103 [35]

Answer:

Because it can be use by many people

6 0

3 years ago

An investment project has annual cash inflows of $4,400, $3,900, $5,100, and $4,300, for the next four years, respectively. The

RoseWind [281]

Answer:

Discounted payback period shall be as follows:

a. 1 year 7.36 months

b. 2 years 3.27 months

c. 3 years 2.9 months

Explanation:

a. Payback period in case of cash outflow = $5,700

For calculating the pay back period we shall firstly discount the cash flows to present value @14 %.

Year Cash Flow PV Factor PV of Cash Flow Cumulative

Cash Flow

0 - $5,700 1 - $5,700 -5,700

1 $4,400 0.877 $3,858.8 -$1,841.2

2 $3,900 0.770 $3,003 $1,161.8

Since the cumulative cash flows are positive in 2nd year payback period =

1 + $\frac{1,841.2}{3,003} \times 12$ = 1 year and 7.36 months

b. Payback period in case of cash outflow = $7,800

For calculating the pay back period we shall firstly discount the cash flows to present value @14 %.

Year Cash Flow PV Factor PV of Cash Flow Cumulative

Cash Flow

0 - $7,800 1 - $7,800 -7,800

1 $4,400 0.877 $3,858.8 -$3,941.2

2 $3,900 0.770 $3,003 -$938.2

3 $5,100 0.675 $3,442.5 $2,504.3

Since the cumulative cash flows are positive in 3rd year payback period =

2 + $\frac{938.2}{3,442.5} \times 12$ = 2 years and 3.27 months

b. Payback period in case of cash outflow = $10,800

For calculating the pay back period we shall firstly discount the cash flows to present value @14 %.

Year Cash Flow PV Factor PV of Cash Flow Cumulative

Cash Flow

0 - $10,800 1 - $10,800 -$10,800

1 $4,400 0.877 $3,858.8 -$6,941.2

2 $3,900 0.770 $3,003 -$3,938.2

3 $5,100 0.675 $3,442.5 -$495.7

4 $4,300 0.592 $2,545.6 $2,049.9

Since the cumulative cash flows are positive in 4th year payback period =

3 + $\frac{495.7}{2,049.9} \times 12$ = 3 years and 2.9 months

Final Answer

Discounted payback period shall be as follows:

a. 1 year 7.36 months

b. 2 years 3.27 months

c. 3 years 2.9 months

7 0

3 years ago

A property that produces a first year NOI of $80,000 is purchased for $750,000. The NOI is expected stay constant through year 5

PIT_PIT [208]

Answer: $115998

Explanation:

Based on the information given, we can calculate the NOI from the 6th year which will be:

= $80,000 × (100% + 15%)

= $80,000 × 115%

= $80,000 × 1.15

= $92,000

Therefore, the net present value of the property based on the 10-year holding period and a discount rate of 9.5% will be:

= 80000(PVAF, 5 year) + 92000[PVAF,(10-5),9.5%] + 830000/(1.095)10-750000

= (80000 × 3.839) + (92000 × 2.439) + (830000 × 0.403) - 750000

= 307120 + 224388 + 334490 - 750000

= 865998 - 750000

= $115998

Therefore, the net present value is $115998

4 0

2 years ago