A natural monopoly is a monopoly that arises because one firm can meet the entire market demand at a lower average _____ cost t
han two or more firms could. A legal monopoly is a market in which _____ by the granting of a public franchise, government license, patent, or copyright.
Monopoly is a market where there is a single seller, so the seller have the power to charge high prices from the customers. It arises because one firm meet the entire market at lower average total cost than 2 or more firms.
A legal monopoly or statutory monopoly, firm is protected by the law from the competitors. So, it provides the competition as well as the entry restriction.
If user experience of a product is poor, _____________.
Of course, the conscious user will simply go away.
Explanation:
A poor product drives away the customers of the organization that is offering the product. The reputation of the organization is also badly damaged by the poor product, especially if its production is persistent. Poor products can lead an organization to liquidate. The other efforts made by the organization cannot compensate for a poor product. Even, the good products being offered by such an organization will perform poorly in the marketplace as a result of the rub-on effect created by the poor product. Therefore, products and services should bear the mark of good quality at all times
In the production process there are various kind of inventory, that is raw material inventory, work in process and then the finished inventory.
Thus, there is this equivalent units concepts which calculates the completed units that would have been produced in case of no work in process.
Thus, when we use FIFO method and we want to calculate the unit cost of materials assuming inventory of raw material is also added in stages rather than completely adding it as a first step itself, the correct equation = Total cost of materials/equivalent units of output.
