Natural monopoly tends to serve a whole market exclusively.
<h2>What is Natural Monopoly?</h2>
A natural monopoly is a sort of monopoly that frequently arises as a result of the high start-up costs or considerable economies of scale of operating a business in a particular industry, which can result in significant barriers to entry for potential competitors. In a certain sector or region, a corporation with a natural monopoly might be the exclusive supplier of a given good or service. In industries that need specialized technology, raw materials, or other elements to function, natural monopolies may develop.
<h3>Key Features of Natural Monopoly</h3>
- A natural monopoly is a special kind of monopoly that develops when there is only one company that can effectively provide the service in a particular area due to high start-up costs and considerable economies of scale.
- A business with a natural monopoly may be the exclusive supplier of a good or service in a given sector or region.
- Natural monopolies are permitted when one firm can provide a good or service for less money than any potential rival, but they are frequently very tightly controlled to safeguard consumers.
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Answer:
Total Contribution margin: 107,500,000
Explanation:
<u>Contribution:</u> sales revenue - variable cost
normal price 5,000
peak-load price: 5,000 + 20% = 5,000 x 1.2 = 6,000
<u>revenue</u>
20,000 units at 5,000 100,000,000
5,000 untis at 6,000 <u> 30,000,000 </u>
Total revenue 130,000,000
<u>variable cost:</u>
25,000 units x 900 = (22,500,000)
Total Contribution margin: 107,500,000
You provide what you like like and santa brings it to north pole and see what is best for you
Answer:
Access and price relationships
Explanation:
Financial institutions - organizations operating in the financial and credit system. In the interpretation of the Western economic tradition, financial institutions are intermediaries between investors (households) and entrepreneurs (consumers of investments).
Financial markets are mechanisms that enable funds to be transferred from those with excess funds to those with few funds. Financial markets are divided into two as money markets and capital markets in terms of maturity. Money markets are markets where short-term funding supply and demand meet. Here, a short term is a year and a shorter term. Capital markets are the markets where long-term fund supply and demand are encountered. Here, long term is meant for over a year. Financial markets also provide low transaction cost value and prices that reflect the effective-market hypothesis.
We can think of basic relationships. The first concerns about the access. Financial institutions provide access to financial markets on behalf of investors seeking financial assets, such as institutional investors. The second relationship can often be claimed as "price." Financial asset prices (traded in financial markets), research and trading activities in financial assets, the actual cost or price of a particular asset affect the performance of financial institutions that affect the market outlook. For example, if a financial institution holds a significant stake in a particular company, it is a sign of markets (good or bad) and ultimately affects the price that a company is willing to pay for a financial asset. (e.g. stocks, bonds, etc.).
Answer:
Businesses use three types of profit to examine different areas of their companies.
1. Gross profit subtracts variable costs to revenue for each product line. Variable costs are only those needed to produce each product, like assembly workers, materials, and fuel. It doesn't include fixed costs, like plants, equipment, and the human resources department. Companies compare product lines to see which is most profitable.
2. Operating profit includes both variable and fixed costs. Since it doesn't include certain financial costs, it's also commonly called EBITA. That stands for Earnings Before Interest, Tax, Depreciation, and Amortization. It's the most commonly used, especially for service companies that don't have products.
3. Net profit includes all costs. It's the most accurate representation of how much money the business is making. On the other hand, it may be misleading. For example, if the company generates a lot of cash, and it's invested in a rising stock market, it may look like it's doing well. But it might just have a good finance department, and not be making money on its core products.
Explanation:
