Where should we follow you ?
One major barrier to entry under pure monopoly arises from the cost of the infrastructure that would be needed for production.
<h3>What is meant by barriers to entry?</h3>
This is the term that is used to show that the market structure is very difficult to break into.
This means that there would be only very few sellers of that particular product in the market.
<h3>What is diseconomies of scale?</h3>
This term is used in economics to refer to the fact that a business or a firm would have grown to be so large in such a way that the costs per unit would have to rise.
This is the stage where the economies to scale is no longer working for this particular firm. The production of goods and services would rise so much as per the unit cost of each item.
Types of these are
- infrastructure diseconomies
- Pollution diseconomies
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The concept of present value lets us know that the doggy estate worth in today's dollars is $180614.80
<h3>What is the present value of the doggy estate worth?</h3>
The concept of present value is significant because it enables investors to determine whether the amount they pay for an investment is reasonable. The present value of a future cash flow defines how much it is worth in today's value.
From the given information:
- The annual cashflow C = $20,000
- Interest rate (i) = 4.2% = 0.042
- Number of period (n) = 11
Thus, the present value of the doggy estate can be calculated by using the formula;
![\mathbf{PV = C \times \Big [ \dfrac{1 - \dfrac{1}{(1+i)^n}}{i}\Big] \times (1+i)}](https://tex.z-dn.net/?f=%5Cmathbf%7BPV%20%3D%20C%20%5Ctimes%20%5CBig%20%5B%20%5Cdfrac%7B1%20-%20%5Cdfrac%7B1%7D%7B%281%2Bi%29%5En%7D%7D%7Bi%7D%5CBig%5D%20%5Ctimes%20%281%2Bi%29%7D)
![\mathbf{PV = 20000 \times \Big [ \dfrac{1 - \dfrac{1}{(1+0.042)^{11}}}{0.042}\Big] \times (1+0.042)}](https://tex.z-dn.net/?f=%5Cmathbf%7BPV%20%3D%2020000%20%5Ctimes%20%5CBig%20%5B%20%5Cdfrac%7B1%20-%20%5Cdfrac%7B1%7D%7B%281%2B0.042%29%5E%7B11%7D%7D%7D%7B0.042%7D%5CBig%5D%20%5Ctimes%20%281%2B0.042%29%7D)
PV = $180614.80
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Answer:
Un argumento se puede dividir en tres componentes principales: premisas, inferencias y conclusión.
