Answer:
D. A monopoly that results when one firm is able to produce at a lower cost than multiple firms, giving large firms with higher levels of output an advantage over smaller competitors.
A. Municipal Power Light, the local supplier of electricity.
Explanation: A natural monopoly is a monopoly enjoyed by a firm due to its large nature through which it is able to enjoy Economies of scale and produce at a reduced cost which other companies are unable to meet up with.
WITH A NATURAL MONOPOLY, A FIRM HAS A CONTROL OVER THE PRICE OF THE PRODUCT PRODUCED AND SERVICE RENDERED AS THERE ARE NO CLOSE SUBSTITUTE.
The municipal Power light, the local supply of power is an example of a firm that can enjoy Natural monopoly.
Answer:
C. There has been an increase in the rate of inflation
Explanation:
We should make the difference between positive statements and normative statements.
positive economics tries to understand behavior without judgments
while normaives, are the evalation on the positive economics. It prescribes a course of action like "higher education should be free"
In this case, only statment C is a positive statement as it does not inccurs in any sugestions. It only describes a situation without judgments on the oucome.
Answer:
Specialization and the division of labor can increase productivity.
Explanation:
Specialization is about an <em>invidivual</em> focusing on very specific tasks that are best suited to them according to their skills and knowledge. This concept can be applied to <em>companies</em> and <em>countries</em>, as they specialize on producing a small amount of products they excel at, for having the raw material, knowledge and/or technology to do so.
The division of labor is about breaking down the production process of a good in <em>different parts</em> performed by <em>different people</em> instead of having all workers performing all the tasks. The idea is to let workers be <em>specialists</em> in a small amout of tasks so that they can be more efficient and overall productivity can be greatly increased. This concept was introduced by the <u>'father of economics'</u> Adam Smith in his book "The Wealth of Nations" released in 1776.
Specialization and division of labor are complementing concepts that bring a company an increase in productivity and helps achieve economies of scale.
Answer:
Explanation:
The Delors Commission proposed that all impediments to the formation of a single market be eliminated by December 31, 1992, resulting in the Single European Act. The result was the Single European Act, which was independently ratified by the parliaments of each member country and became EC law in 1987.
