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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 feature is a characteristic of secure access? select one: accounting deception environment simulation compliance

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2 years ago

Joe and karina depend on both of their salaries to afford their mortgage. karina recently lost her job and they are worried that

WINSTONCH [101]

Answer:

The Communication Privacy Management Theory

Explanation:

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3 years ago

Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2018: Factory rent $ 36,100

salantis [7]

Answer:

1) Direct materials=$43070

2)Direct labor=$126300

3)Manufacture overhead=$117600

4)Total manufacturing cost=$286970

5)Prime cost=$169370

6)Conversion costs = 126300+117600= $243900

7)Total period cost= $418670

Explanation:

The company reported the following costs for 2018:

1) Direct materials

Thread 1,020

Premium quality cotton material 41,300

Buttons 750

Total= $43070

2)Direct labor

Wages paid to seamstresses 76,200

Wages paid to cutters 50,100

Total= $126300

3) Manufacture overhead

Factory rent $ 36,100

Utilities for factory 24,600

Cutting room supervisor's salary 31,300

Factory insurance 19,100

Depreciation on sewing machines 6,500

Total= $117600

Notice that marketing, Depreciation on salespersons' vehicles and president's salary are not part of manufacturing overhead.

4)Total manufacturing cost=$43070+126300+117600=$286970

5)Prime cost= direct material + direct labor=43070+126300=$169370

6)Conversion costs = Direct labor + Manufacturing overhead= 126300+117600= $243900

7)Total period cost= manufacturing cost + Company advertising + Depreciation on salespersons' vehicles + President’s salary

Total period cost= 286970 + 24200 + 30600 + 76900= $418670

7 0

3 years ago

Data about the size and composition of a population are gathered in a survey called

Svet_ta [14]

Systematic acquisition and recording information concerning members of a given population is called census. This involves collecting and gathering data about the size and the composition of a population in a given country or nation. In the U.S for example census is undertaken after every ten years which involves tallying the population in the country and recording basic information such as age, sex and race. The census is used by the federal government among other reasons to establish the allocation of funding for education programs in the communities and states

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3 years ago

Read 2 more answers

The number of taxicabs in Motorville and the taxicab fares are regulated. The fare currently charged is Rs.500 a ride. Motorvill

larisa86 [58]

Answer:

The answer is below

Explanation:

i) The price elasticity of demand is given by the formula:

$Price \ elasticity\ of \ demand=\frac{\Delta Q}{\Delta P} =\frac{\frac{Q_2-Q_1}{(Q_2+Q_1)/2} }{\frac{P_2-P_1}{(P_2+P_1)/2} } \\\\Price \ elasticity\ of \ demand=\frac{\frac{40-80}{(40+80)/2} }{\frac{600-500}{(600+500)/2} }=\frac{-2/3}{2/11} =3.667 (ignore \ the\ sign)$

Since the price elasticity of demand is greater than 1 hence it is elastic

ii) Since the price elasticity of demand is elastic as a result of increase in fare, hence the total revenue would decrease.

iii)

$Price \ elasticity\ of \ demand=\frac{\Delta Q}{\Delta P} =\frac{\frac{Q_2-Q_1}{(Q_2+Q_1)/2} }{\frac{P_2-P_1}{(P_2+P_1)/2} } \\\\Price \ elasticity\ of \ demand=\frac{\frac{120-80}{(120+80)/2} }{\frac{400-500}{(400+500)/2} }=\frac{0.4}{-2/9} =1.8 (ignore \ the\ sign)$

Since the price elasticity of demand is greater than 1 hence it is elastic

4 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?