1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
elena55 [62]
3 years ago
14

Economic efficiency requires that a natural monopoly's price be: Select one: A. equal to marginal cost where it intersects the d

emand curve B. equal to the lowest price the firm can charge and still make a normal profit C. equal to average variable cost where it intersects the demand curve D. equal to average total cost where it intersects the demand curve.
Business
1 answer:
slavikrds [6]3 years ago
7 0

Answer: A. equal to marginal cost where it intersects the demand curve

Explanation:

In a pure competition, the market is efficient because it balances demand and supply and gives an equilibrium price that takes both of them into account.

In this market, the price is equal to the marginal revenue of a firm and the profit maximizing level of production is where the marginal revenue intersects the marginal cost.

The efficient level is therefore where price equals marginal cost. The same goes for a natural monopoly. If economic efficiency is to be achieved, the natural monopoly's price must equal the marginal cost at the equilibrium price.

You might be interested in
Outstanding stock of the West Corporation included 40,000 shares of $5 par common stock and 20,000 shares of 5%, $10 par non-cum
iragen [17]

Answer:

b) $10.000

Explanation:

In order to find the total preferred stock dividend we need to have the rate of the dividend, the par value of the preferred stock and the number of preferred stocks. In this question we are given the rate of the dividend of preferred stock which is 5%, we are also given the par value of the preferred stock which is $10 and we are also given the total number of preferred stock which is 20,000.

To find out how much dividend was distributed to preferred shareholders we need to use the formula

Rate of dividend*par value of stock * number of preferred shares

0.05*10*20,000= 10,000

6 0
3 years ago
Besides possibly paying the premiums for a medical insurance plan, the insured is almost always responsible for making Other, ou
Rus_ich [418]

Answer: b. Internal limits

Explanation:

Sometimes there will be internal limits on a policy which will usually be less than the general policy limits so as to limit the amount the insurance company will pay on certain goods such as surgical procedures.

This is therefore the relevant provision here because there is probably a cap on the amount that Deion's insurance company will pay on the surgery but as Deion was within acceptable costs, he won't have to pay for passing any internal limits.

4 0
3 years ago
If unexpected news raised people's expectations of a corporation's future dividends and price, then before the price changes thi
Harlamova29_29 [7]
If the unexpected news was able to raise the expectation of the people of the future dividends and future price of the corporation, then before the price will change, this corporation's stock would be undervalued, so its price would rise.



8 0
3 years ago
Assume labor is the only variable input and that an additional input of labor increases total output from 72 to 78 units. if the
Anarel [89]
The MRP of this additional work is "$36".

<span>labor increases total output from = 72 to 78 units
= 78 - 72 = 6
</span><span>$6 per unit in a purely competitive market
MRP = 6 x 6 = $36</span>
7 0
4 years ago
Suppose Billy Bud's Bucking Broncos employs 20 workers at a daily wage rate of $60 each. The average product of labor is 30 buck
nikitadnepr [17]

Answer:

a. $5.00

Explanation:

Marginal cost is the cost of each extra unit sold or produced.

Average total cost is the average cost of all the units which is sold or produced during the period.

Marginal cost can be calculate by the total cost divided by the numbers of unit.

Marginal Cost of last bucking = Daily Wage / Marginal Product of Last worker

Marginal Cost of last bucking = $60 / 12 bucking

Marginal Cost of last bucking = $5 per bucking

5 0
3 years ago
Read 2 more answers
Other questions:
  • Beverly Foster is planning for her retirement. She has determined that her car is worth $10,000, her home is worth $150,000, her
    5·2 answers
  • Which is true about what a customer typically expects from a support technician?
    5·1 answer
  • Gloria's employer deducted 20 percent of her pay in the month of january due to personal problems he had with her. under the lil
    14·1 answer
  • Assume there are no investment projects in the economy that yield an expected rate of return of 25 percent or more. but suppose
    11·1 answer
  • What is an organizing approach used by labor where employees sign a card of support if they want unionization, and if 50 percent
    6·1 answer
  • The trial balance of a company included the following account balances: Cash, $25,000; Short-Term Investments, $10,000; Accounts
    6·2 answers
  • Pharoah Company had the following account balances: Sales revenue $ 447000 Cost of goods sold 228000 Salaries and wages expense
    9·1 answer
  • Copy Center pays an average wage of $12 per hour to employees for printing and copying jobs, and allocates $18 of overhead for e
    14·1 answer
  • Are Boolean Operators More Efficient Than Filtering Options?
    5·2 answers
  • The federal reserve banks are ________ institutions since they are owned by the ________.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!