An example of a natural monopoly found across the globe is power delivery.
Is electricity a natural monopoly?
- Electricity service grocery delivery retail store security driveway concrete repair Natural Monopolies.
- A natural monopoly exists when average costs continuously fall as the firm gets larger.
- An electric company is a classic example of a natural monopoly.
What are some examples of monopolies?
Natural gas, electricity companies, and other utility companies are examples of natural monopolies.
They exist as monopolies because the cost to enter the industry is high and new entrants are unable to provide the same services at lower prices and in quantities comparable to the existing firm.
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Answer: D. $1,315,789
Explanation:
Return on Investment = Net operating income/ Average operating assets
Average return on Assets will therefore be;
= Net Operating Income/ Return on Investment
= 250,000/0.19
= $1,315,789.47
= $1,315,789
Answer:
1. Economic investment refers to the creation and expansion of business enterprises.
Explanation:
Economic investments: increase of the capital of a company. This can range from human resources, equipment, facelities, raw materials and others. in general it refers to tangible assets used into the business operations,
While Financial investments refer to allocation of cash to achieve a certain yield over a period. In financial investment we can find bonds, stock, rela state ventures, derivates among others. If it is traded with the expectation of a financial gain (cash inflow in the future are greater than cash outflow at purchase) could be considered this type of investment.
Answer:
$118,000
Explanation:
The formula and the estimation of the direct material used is shown below:
Direct material used = Starting raw material balance + purchase made during the year- ending raw material balance
= $42,000 + $127,000 - $51,000
= $118,000
Adding the purchased amount and deducting the ending raw material balance to the beginning raw material balance for computing the direct material used
Answer:
D. the company does not have a legal obligation to pay dividends when promised.
Explanation:
Dividends are share of income distributed by the company to shareholders when the company performs good, and earns profit.
But since it is a distribution of income and not a mandatory payment, there might be chances that company do not pay dividends, and might retain the income earned for future growth prospects.
Thus, in order to earn money fast although the company promises to make dividend payments, but it shall be taken care, that the company will necessarily pay dividends.
