A natural monopoly, such as a local electricity provider, is the result of long run average total costs declining continuously as output increases. The correct option among all the options that are given in the question is option "3". The initial cost of power generation and power distribution cost is high. Once the generation starts and the number of consumer increases, the average cost starts declining.
The debt ratio is calculated by dividing the Total Liabilities by Total Assets. We are asked to calculate the debt ratio at the end of the year, hence we need to take year-end values for Total Liabilities and Total Assets.
We are given the Total Liabilities at the beginning of the year $175,000 and there is no change in the liabilities given, hence we can say that Total liabilities at the end of the year shall remain same = $175,000
We are given Total Assets at the end of the year are $260,000
Debt ratio = Total Liabilities / Total Assets = 175000/260000 = 0.673
Hence debt ratio at the end of the current year shall be <u>0.673</u>
Money. I'm doing the same subject right now. Feel free to message me if you have any questions.
<em>Temporary Assistance for Needy Families (TANF)</em>
<em>Social Security</em>
<em>Children's Allowance</em>
<em>Newborns' Allowance</em>
<em>Worker's Compensation</em>
Based on the type of cost that the original cost of the machine is, we can say that it represents a sunk cost.
<h3>What is a sunk cost?</h3>
This is a cost that a business has already incurred as regards a certain investment or asset. This cost cannot be recovered and so should not have any weight on future decisions made.
The original cost of the existing machine of $10,000, is a sunk cost because the company has already incurred it and cannot recover it.
Find out more on sunk costs at brainly.com/question/24976252.
