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3 years ago

why do natural and geographical monopolies arise, and why are they often good for the economy and for consumers

1 answer:

3 0

They arise because goods can sometimes be found only in certain parts of the world. A famous example of this was historically silk which was only found in China and everyone had to pay what the Chinese manufacturers said. It was good for Chinese economy because their merchants and silk manufacturers were rich, and in return the consumers were satisfied because they had the original high quality silk coming straight from China which ensured quality.

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Company X had net income of $200,000 in the year 2016. At the beginning of 2016, there were 500,000 shares of outstanding common

EleoNora [17]

Answer:

Basic earning per share $0.21 per share

Explanation:

Basic Earning per share = ( Net Income - Preferred stock dividend ) / Weighted Average outstanding shares

Basic Earning per share = ( $200,000 - $50,000 ) / 700,000

Basic Earning per share = $150,000 / 700,000

Basic Earning per share = $0.2143 / share

Weighted average Outstanding shares = 500,000 + 200,000

Weighted average Outstanding shares = 700,000 shares

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3 years ago

The following income statements were drawn from the annual reports of the Denver Company and the Reno Company: Denver* Reno* Net

Lynna [10]

Answer:

1. Gross margin percentage:

For Denver and the Reno is 53% and 27%

2. Return on sales ratio:

For Denver and the Reno is 18% and 10%

Explanation:

1. The formula to compute the gross margin percentage is shown below:

Gross margin percentage = (Gross margin) ÷ (Net sales) × 100

For Denver = ($17,760 ÷ $33,200) × 100 = 53%

For Reno = ($23,850 ÷ $86,900) × 100 = 27%

2. The formula to compute the return-on-sales ratios is shown below:

Return-on-sales ratio = (Net income) ÷ (Net sales) × 100

For Denver = ($6,000 ÷ $33,200) × 100 = 18%

For Reno = ($8,502 ÷ $86,900) × 100 = 10%

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3 years ago

Ivy is investing in a home cleaning franchise called HomeKeepers. At her first interview with the franchisor's selling agent, sh

evablogger [386]

Answer:

A royalty is a fee that the franchisee has to pay the franchiser for trading under its name.

Explanation:

A franchise operation is when one party (franchiser) allows another party (franchisee) access to it’s proprietary knowledge, trademark and processes in order to allow the party to sell a product or provide a service under the business’s name. A common example of a franchise operation are KFC outlets across the globe.

A royalty fee is a fee that the franchisee has to pay the franchiser on a common basis such as quarterly or annually for trading under its name. It is generally calculated as a percentage of gross sales. In this case the royalty fee would be 5% of gross sales.

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3 years ago

Given the following production function for Tight Jeans Corporation, calculate the marginal physical product and the value of th

kicyunya [14]

Answer:

labor input pairs of jeans marginal physical value of marginal

per day product physical product

0 0 0 0

1 10 10 $300

2 36 26 $780

3 56 20 $600

4 68 12 $360

5 74 6 $180

6 76 2 $60

7 76 0 0

8 74 -2 -$60

The marginal revenue product is the value of marginal physical product, and you calculate it by multiplying marginal physical product times the unit price of the pair of jeans.

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3 years ago

O of 2<br> Fill in the Blank Question<br> A discount related to early payment is a

Tasya [4]

is a discount that buyers can receive in exchange

6 0

3 years ago