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.
Answer:
<em>C. Judy</em>
Explanation:
A merchant underneath the Uniform Commercial Code is an individual who:
- <em>Trades on items such as those included in the sales agreement.
</em>
- <em>Through profession, it considers itself to have unique skills and knowledge relating to the activities or products involved in the deal.
</em>
- <em>Hires a merchant as a dealer, broker or any other distributor.</em>
An individual is a merchant whenever, working in a professional context, he or she possesses or utilizes skills related specifically to both the products and services being offered.
<em>Judy is an expert in horse training, therefore possess skills, that will offer her an advantage in selling horses.</em>
Answer:
[b] = $ 2500
[c] = $ 7500
[d] = Gross margin = 22500 – 15000 = $ 7500
Net Income = 7500 – 4000 = $ 3500
[e] = $ 3500
Explanation:
Here the solution is given as follows,
Answer:
B. the area bounded by the demand curve for X and the two axes
Explanation:
The answer is A. Imposition of a non binding price ceiling in the market
Price Ceiling is when a government impose a price limit over a specific product
Non-Binding Price ceiling is if that price limit that imposed to the product is still <em><u>higher than market equilibrium ,</u></em> which won't do anything to producer's surplus
