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Nonamiya [84]
3 years ago
11

uppose that Rowan, Inc. builds a high-speed, magnetically powered transportation system from New York to Los Angeles, which is t

he only firm providing this service. High fixed costs resulting from the enormous quantity of capital used in this system enable decreasing average cost for any conceivable level of demand. This monopoly would result from:
Business
1 answer:
IrinaVladis [17]3 years ago
5 0

Answer: b. increasing returns to scale.

Explanation:

With the high capital costs having enabled decreasing average costs for any conceivable level of demand, the company would be making an increasing returns to scale which means that it would be making more return per capital spent.

This will create a natural monopoly because the company will be more efficient in this particular industry and if another company tried to come in, they would have to spend a lot of money to get to a point of increasing returns to scale.

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The up and coming corporation's common stock has a beta of 1.05. if the risk-free rate is 5.3 percent and the expected return on
Ugo [173]

Cost of equity is calculated as -

Cost of equity = Risk free return + Beta * (Market risk - Risk free return)

Given,

Risk free return = 5.3 %

Market risk = 12 %

Beta = 1.05

Cost of equity = 5.3 % + (1.05*(12-5.3%))

Cost of equity = 12.335 % or 12.24 %

6 0
3 years ago
Bull’s weighted average cost of capital (WACC) be if it has to raise additional common equity capital by issuing new common stoc
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Answer:

with only one chain and one pendant per necklace.write an expression that shows how much it will cost ronnie to make s short necklaces and n long necklaces. then find the cost for 3 short necklaces 2 long necklaces

8 0
3 years ago
Compare a property rights system in which people are allowed to keep one-third of the monetary rewards of their labor with a sys
Veseljchak [2.6K]

Answer:

latter, latter

Explanation:

Property rights system determine how economic resources are used and owned by individuals, associations, collectives, or governments.

It also includes intellectual property such as inventions or ideas.

Such rights reduce destructive competition for control of economic resources. and replace this competition by peaceful means.

In a system where people are allowed to keep one-third of the monetary rewards of their labor with a system in which they keep two-thirds, we should expect more entrepreneurship under the <u>latter</u> system and faster real economic growth under the <u>latter</u> system.

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2 years ago
The government wants to make Medicare benefits available to more people, but to achieve this goal, it needs to make cuts in the
ArbitrLikvidat [17]

Answer:

A. elective surgery due to its lower marginal utility per dollar of expenditure.

Explanation:

As there is non essential elective surgeries, as from government's point of view since it is non essential that is not required and not utilized by major citizens of the country, and since there is requirement of budget cut-down. The government shall remove elective surgery.

as the amount of expenditure involved in these surgeries is also high and the resulting utility for each surgery is really low, it shall be removed.

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2 years ago
Which of the following is a primary responsibility of the Federal Reserve Bank?
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To maintain economical balance and keep are budget on track
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3 years ago
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