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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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Which eoc configuration aligns with the on-scene incident?.

g100num [7]

Answer: ICS or ICS-like EOC structure aligns with the on-scene incident organization. Many associations, jurisdictions, and organizations configure their EOCs simply by using the general/standard organizational structure of ICS. It is used either as or by modifying it slightly.

Explanation:

8 0

1 year ago

1 . Perpetuities Perpetuities are also called annuities with an extended or unlimited life. Based on your understanding of perpe

Dmitrij [34]

Answer:

(A) A perpetuity is a stream of regularly timed, equal cash flows that continues forever

(B) The value of a perpetuity is equal to the sum of the present value of its expected future cash flows

the bank offers 1.6%

in the alternative scenario it offers 1.067%

Explanation:

(A) A perpetuity is a stream of regularly timed, equal cash flows that continues forever

The perpetuity is an annuity in which time tends to infinity, to be qualified as an annuity the cash payment must be regular.

(B) The value of a perpetuity is equal to the sum of the present value of its expected future cash flows

As state above the perpetuinty is an annuity, the annuities return the present value of the expcted future cash flow.

Given the annuity formula

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

if times tends to infinity then the expression:

$\lim_{n \to \infty} (1+r)^{-n} = 1$

Nexti n the annuity formula we got:

$C \times \frac{1-1 }{rate}= PV\\$

So we end up with C / rate = PV

which s the perpetuity formula

800/50000 = 0.016 = 1.6%

800/75000 = 0.0106667 = 1.067%

7 0

3 years ago

Riverside Company issued long-term debt of 350 paid dividends of 20 and issued capital stock of 100. Cash flow from financing ac

aniked [119]

Answer:

430

Explanation:

Riverside company issued a long term debt of 350

They paid dividend of 20

They also issued a capital stock of 100

Therefore the cash flow from financing activities can be calculated as follows

=long term debt - dividend + issued capital stock

= 350-20+100

= 330+100

= 430

Hence the cash flow from financing activities was 430

3 0

2 years ago

Purple Rose Corporation reported pretax book income of $500,000.

Vikentia [17]

Answer: $68,000

Explanation:

Let us assume that we are given a tax rate of 34% to use in computing the question. Therefore, Purple Rose's current income tax expense or benefit will be:

Pre-tax book income = $500,000

Less: Tax depreciation = $300,000

Net Income = $500,000 - $300,000 = $200,000

Current income tax expenses at 34% will then be:

= 34% × Net income

= 34/100 × $200,000

= $68,000

5 0

3 years ago

You have a chance to buy an annuity that pays $2,500 at the end of each year for 3 years. You could earn 5.5% on your money in o

artcher [175]

Answer:

$6,744.83

Explanation:

We calcualte the present value of a three years annuity discounted at 5.5% considering their cashflow are 2,500

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 2,500.00

time 3

rate 0.055

$2500 \times \frac{1-(1+0.055)^{-3} }{0.055} = PV\\$

PV $6,744.8334

3 0

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?