production for that product will increase.
<em>If the marketing managers at Peyton Bike's Inc. decide to sell each bike at a price lower than $2,000 per unit</em><em>, a shortage of bikes will be created.</em>
<h3>Why are bikes in short supply?</h3>
As a result, additional problems like plant shutdowns and disruptions as well as the unheard-of increase in bike orders during the peak of the coronavirus pandemic have added to the supply chain difficulties. The sector has never before experienced such a massive increase in demand as it has over the past two years.
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An example of a natural monopoly industry operating in South Africa include "Eskom".
<h3>
What is natural monopoly?</h3>
A natural monopoly occurs when there is an instance in which it is economically viable and better for a single entity to be in full and sole control of the production of a product or service.
Moreover, a natural monopoly is the fact that natural monopolies have extreme economies of scale. It can only start to become profitable when one single firm is able to service the majority of the market.
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Answer:
The price elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price. Elasticities can be usefully divided into five broad categories: perfectly elastic, elastic, perfectly inelastic, inelastic, and unitary.
Explanation:
Explanation:
The journal entries are as follows
a. Retained earnings A/c Dr $300,000 (600,000 shares × $0.50)
To Dividend payable A/c $300,000
(Being the dividend is declared)
b. No journal entry is required
c. Dividend payable A/c $300,000
To Cash A/c $300,000
(Being the dividend is paid for cash is recorded)
