The government attempts to set the price at marginal cost through the force of regulation, a natural monopoly firm will likely lose money and go out of business unless the government offers the firm an ongoing public subsidy.
<h3>
What is Government?</h3>
The governance structures that divide authority between the executive and legislative branches are referred to as the system of government. Governments are essential because they uphold law and order and civilization to function.
Governments may provide cash, tax rebates, or other forms of financial assistance to particular businesses or sectors of the economy. Subsidies are intended to help or support areas that are seen as being important to the nation's economy or infrastructure.
Producers utilize subsidies to boost their profits. These are used to lower the cost of necessities for people on low incomes.
Learn more about the government, here:
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Answer: A
Explanation:
When the economy is at full employment there is always a natural rate of unemployment which is constituted by the amount of employment caused by structural and frictional factors in the labour market
Answer:
The $5,680 expense should the firm deduct from revenues in the month when it recognizes the revenue.
Explanation:
According to the matching accounting principles, the expenses and revenues should be recorded in that period in which they are incurred and earned.
In the question, the Sheridan pays $2,590 in April, and $3,090 in may but it incurred in April
So, the total amount would be $2,590 + $3,090 = $5,680 should be recorded on April month only.