Answer:
Detailed solution is given below in tabular form:
Answer:
Correll Company
a. Yes State R residents who purchased Firm L (out-of-state) merchandise owe use tax on their purchases.
b. State R would collect $1,080,000 additional revenue ($18 million * 6%) if Correll was required to collect the use tax at the point of sale and then remit the tax collected to State R.
Explanation:
a) Data and Calculations:
Cost of merchandise to customers in State R = $18 million
State R's sales and use tax on the purchase and consumption of retail goods within the state = 6%
Amount that Correll could collect for State R = $1,080,000 ($18 million * 6%)
b) Note that Correll (Firm L) collecting the State R use tax does not affect State R residents' legal liability to pay the use tax. Unfortunately, not many people actually remit their self-assessed use tax.
Answer: A natural monopoly occurs when "C. there are economies of scale over the relevant range of output.".
Explanation: A natural monopoly arises when there is a total absence of competition, because said company can supply the market at a lower cost and with a higher quality than if there was competition.
The characteristics that this market can present are:
A very high level of investment is required (Economies of scale)
Use of natural resources, which are located in few places on our planet.
Patents that protect technological innovations
Answer: Central American Common Market ( CACM) or in Spanish Mercado Comun Centroamericano (MCCA)
Explanation: The Central American Common Market was established in December 1960 comprising of Guatemala, Honduras, El Salvador and Nicaragua and later joined by Costa Rica in July 1962 was established by the general Treaty on Central American Intergretaion with its headquaters based in Guatemala city to foster free trade and economic integration by member states.
It's was established or formed as a need for member countries to respond and cooperate with each other thereby attracting industrial capital and also diversifying their economies to promote regional trade among all member states.
