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3 years ago

Which of the following total cost functions suggests the presence of a natural monopoly?

Business

1 answer:

monitta3 years ago

8 0

Answer: B. TC = 50 + 20Q

Explanation:

A Natural Monopoly is generally associated with a firm that has very high initial fixed costs. These costs are generally related to the use of high scale technology or machinery to operate effectively.

Some examples include, gas pipelines, electricity grids, and the like.

They act as both a deterrent for companies to join the market as well as to exit.

Option B shows the typical Total Cost function of a Natural Monopoly and reflects the high initial costs as well.

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By the time you turn 30 years old, what insurance do you expect to have?

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honestly you would need all of them because they are very important to have as you get older

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3 years ago

Read 2 more answers

You have two options to repay a loan. You can repay $6,000 now and $5,940 in one year; or you can repay $12,000 in 6 months. Fin

Brums [2.3K]

Answer:

We will consider positive interest rate which is i=0.21 or i=21%

Explanation:

The formula for Future value is:

$FV=PV(1+i)^n$

The present value will become:

$PV=FV(1+i)^{-n}$

where:

n is the number of years

Since the condition is same present value,so the given data form the equation:

$6000+5940(1+i)^{-1}=12000(1+i)^{-1/2}$

Divide above equation by $(1+i)^{-1}$

$6000(1+i)+5940=12000(1+i)^{1/2}$

Let $z=(1+i)^{1/2}\\$ . Above equation will become:

$6000z^2+5940=12000z$

Rearranging above equation:

$5940-12000z+6000z^2=0$

Solving the quadratic equation:

z=1.1, z=0.9

Let $z=(1+i)^{1/2}\\$ will become:

$z=(1+i)^{1/2}\\\\z^2=1+i$

$i=z^2-1$

For z=1.1

$i=(1.1)^2-1\\i=0.21$

For z=0.9

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we will consider positive interest rate which is i=0.21 or i=21%

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3 years ago

Tim, who works for Peachtree Realty, referred a buyer to a broker who works for Pinetop Realty. The referring agent is to receiv

IrinaK [193]

Answer:

$1,312.50

Explanation:

Calculation for How much was the referring agent paid

First step is to find the buyer agent amount by using the buyer's agent percentage to multiply the buyer purchased amount of the home

Using this formula

Buyer agent amount =Buyer's agent percentage× Home purchased amount

Let plug in the formula

Buyer agent amount=1.5%×$350,000

Buyer agent amount=$5,250

The last step is to find How much was the referring agent paid

Using this formula

Amount referring agent paid =Buyer agent amount× Percentage of buyer side commission

Let plug in the formula

Amount referring agent paid=$5,250×25%

Amount referring agent paid=$1,312.50

Therefore the amount that the referring agent paid will be $1,312.50

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3 years ago

Victory Corporation sold 400 shares of treasury stock for $45 per share. The cost for the shares was $35. The entry to record th

Marianna [84]

Answer:The entry to record the sale will include a Credit toPaid in Capital from treasury stock at $4,000.

Explanation:

Journal entry to record sale of shares

Accounts and explanation Debit Credit

Cash $18,000

Treasury stock $14,000

Paid in Capital from Treasury STOCK $4,000

Calculation

CASH = Number of shares x Price per share

= 400 x $45=$18,000

Treasury stock = Number of shares x Price per share

= 400 x $35=$14,000

Paid In Capital = Cash - Treasury stock= $18,000- $14,000= $4000

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3 years ago

A decrease in supply is caused by:

ArbitrLikvidat [17]

D it has to be.........

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3 years ago

Which of the following total cost functions suggests the presence of a natural​ monopoly?

Which of the following total cost functions suggests the presence of a natural monopoly?