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Gekata [30.6K]
3 years ago
5

In a magazine article, a writer explained that the provision of electric power in the United States consists of two processes: t

he generation of electricity and the distribution of electricity. The writer argued that "power distribution is a natural monopoly... . But ... there's ... no reason why the people who generate the electricity ... should be the same people who own the power lines."
a. Why would the distribution of electric power be a natural monopoly?
b. Why would the generation of electric power not be a natural monopoly?
Business
1 answer:
WINSTONCH [101]3 years ago
6 0

Answer: Monopoly is a firm which is the only seller of a particular products or services.

One of the reasons for monopoly is to be privilege to be the only one to have access to a product, in this situation the generating company will naturally have monopoly of distributing electric power since you can only have access to electric power for distribution if you are a power generator or you obtain from them.

A natural monopoly of electricity distribution been conferred on the generating company will help to eliminate price increase by middle men.

2. The generating of electricity power should not be a natural monopoly for this reasons

1. Generating activities is the only sources of electricity limiting it to a firm may exposed it to market population.

2. The scarcity of a competitive substitute for electric power will make the monopolization of it's generation harmful.

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What is the difference between accrual and realization concept in accounting​
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Realization:- in layman terms realization is the receiving of the money that had accrued. For example, when you pay the auto fare, that is realization
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3 years ago
EXERCISE 5–2 Prepare a Cost-Volume-Profit (CVP) Graph LO5–2 Karlik Enterprises distributes a single product whose selling price
andre [41]

Answer:

Cost volume profit analysis (CVP) refers basically to determining the break-even point of a company and how we can use that information to predict how different changes might affect it. When you are performing a CVP analysis you have to decide which variables will be constant, i.e. ceteris paribus, and which will be altered to predict the effect on the company’s operating income.

1)

sales level     total revenue    variable costs      fixed costs      total costs

2,000             48,000             36,000                 24,000            60,000

4,000             96,000             72,000                 24,000            96,000

6,000            144,000           108,000                 24,000           132,000

8,000            192,000           144,000                 24,000           168,000

2) break even point = 4,000 units

8 0
3 years ago
Bonds with a face value of $384000 and a quoted price of 98.5 have a selling price of?
lbvjy [14]

Answer: The selling price would be $378,240.

6 0
1 year ago
Accrued are earned in a period that are both unrecorded and not yet received in cash.
tatyana61 [14]

Accrued income is the income that is earned but has not yet been received by the company.

<h3>What is Revenue?</h3>

Revenue is the income earned by a company, this is the sole reason for the existence of the company and company ensures that the expenses incurred by the company are less than the income earned so that the company stays to compete in the market.

Accrued income is the income for which the company have fulfilled its performance objectives which means the company have provided goods or services but the cash / income is not yet received by the customer, and it will be received in the future.

The company records a double entry for the accrued income and receivable, when cash is received this entry is reversed and sales and cash received is recorded. The accrual recording is a key task and should be performed by expert individuals.

Learn more about Revenue at brainly.com/question/27333811

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5 0
2 years ago
Mervon Company has two operating departments: mixing and bottling. Mixing occupies 27,235 square feet. Bottling occupies 14,665
BARSIC [14]

Answer:

The amount of maintenance costs allocated to each operating department is $159,900 to mixing and $86,100 to bottling

Explanation:

In order to determine the amount of maintenance costs allocated to each operating department we would have to calculate first the percentage of area for each deparment as follows:

Particular      Area in square feet         %

mixing                  27,235                          65

bottling                14,665                           35

Total Area           41,900                          100

Therefore, if the maintentance cost is $246,000, the amount of maintenance costs allocated to each operating department is as follows:

Particular                %                   Allocation of expense

mixing                  65                          159,900=246,000×65/100

bottling                35                           86,100=246,000×35/100

                           100                          246,000

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