Answer: the correct answer is B. (i) and (iii) only
Explanation:
A natural monopoly is a monopoly in an industry in which huge infrastructural costs and other fences to entry relative to the size of the market give the largest supplier in an industry, often the first supplier in a market, an overwhelming advantage over potential competitors.
(i) multiple firms would likely each have to pay large fixed costs to develop their own network of pipes. This is true but often times it is just one big company the one that serves the whole market or a partnership of two or (rarely) three companies that works as a big company.
(iii) a single firm can serve the market at the lowest possible average total cost. This is true because a natural monopoly has scale economies that's why it can offer the lowest possible average total costs.
Answer:
(D) Traceable to a single cost object.
Explanation:
A direct cost -
It is refers to the amount which is directly linked to the production of the specific products and services , is referred to as the direct cost .
The direct cost is variable in nature .
The direct cost can be traced to the cost object , that can be department , product or service.
Hence, from the given information of the question,
The correct option is D.
Answer:
The correct answer is A) top quality.
Explanation:
There are generally two sales approaches: the first, product-oriented. This takes into account its own characteristics in terms of presentation, quality and utility; and the second, people-oriented, where the real needs of the consumer are studied to determine how he uses the good in order to orient himself towards satisfying a need.
The example clearly shows that the orientation with minimum unit costs was mainly focused on the client, so that the first impression is that of a lower price to motivate their purchase decision. For his part, Orchard clearly shows a product orientation, because he tries to offer quality by sacrificing other variables to supply a need.
Answer:
$400
Explanation:
From the question, there is a butterfly spread when a trader buys 100 options with strike prices $60 and $70 and sells 200 options with strike price $65.
The maximum gain is the point where both the stock price and the middle strike price are equal, i.e. equal to $65. At that point, the options payoffs are respectively $500, 0, and 0. By implication, the total payoff is $500.
The set up cost of the butterfly spread can be calculated as follows:
Setup cost = ($11×100) + ($18×100) – ($14×200)
= 1,100 + 1,800 – 2,800
Setup cost = $100
Net gain = Options payoffs – Setup cost = $500 - $100 = $400
Therefore, the maximum net gain (after the cost of the options is taken into account) is $400.
This is a rare occurence in the market world and can lead to malfuunctions. Since the price level has dropped, we have that the catalogued items are overpriced with respect to the income and other basic goods. Hence, the demand for them will drop. In response, companies will also reduce their output.
Also, we have that the true rate of output and natural rate of output difference is proportional to the diffeerence between price levels. Since the actual price level is lower than the expected one, we have that the rate of output will fall below the natural rate of output for a while.
