For a natural monopoly in which economies of scale are taking place at all output levels, which of the following is true?A It would need a subsidy, if regulated to follow marginal cost pricing.B It should be taxed, if regulated to follow average cost pricingIt would maximize total revenue rather than profits.It would produce the allocatively efficient output level, to maximize profit.DB) Its marginal cost exceeds its average total cost at all output levels.

The cost of producing extra units falls as production rises in a natural monopoly with economies of…

Answered: For a natural monopoly in which…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

Part 1 In 2014, Celgene had revenue of $7,670 million, cost of goods sold of $276 million, and inventory of $393.1. What was their weeks-of-supply? Note: Round your answer to 3 decimal places. Part 2 Newell Brands has cost of goods sold of $3,507 million and annual turns of 5.036. Their holding cost is 40%. What is the total annual cost for carrying inventory at Newell Brands? (in $ million). Note: Round your answer to 1 decimal place. Thank you so so much in advance.
Wal-Mart's ability to negotiate a hard bargain with suppliers can be a source of competative advantage if __________ - there is economies of scale - other retailers find it difficult to imitate - other retailers can replicate over time - there is economies of scope which is the correct option ?
With monopoly in industry X, it is not possible to have the price line tangent to the production possibility curve
What would happen to the remaining smaller suppliers if coke cola and pepsi companies came together
You own Athleticon, which manufactures athletic wear. Your new contract with Atlanta United, a professional soccer team, allows Athleticon to be the sole suppler of athletic wear with the “Atlanta United” logo. No one lese can manufacture athletic wear with the “Atlanta United” logo. What do you think will be Athleticon’s level of profitability on the sale of “Atlanta United” athletic wear? Explain why. Your contract with Atlanta United only lasts 3 years. It was not renewed. Other firms can now manufacture athletic wear with the “Atlanta United” logo 2. What would you expect to happen to the price of “Atlanta United” athletic wear? Explain why.
As a purchasing manager for a manufacturer of domestic appliances you are to source the door seal for a new model of microwave oven. the component has caused problems in the past but design problems have now been overcome. the market has been increasingly competitive and any problems with the new model could be disastrous. preliminary sourcing indicates that permaseal Limited has a substantially lower price than the other potential suppliers, including your current supplier Thermal Bond limited. however, the last time you did business with permaseal was six years and at the time you experience some quality and delivery problems. Explain in details how you would undertake this sourcing exercise in order to ensure that you select the best possible supplier for the long term.
As a purchasing manager for a manufacturer of domestic appliances, you are to source the door seal for a new model of a microwave oven. The component has caused problems in the past but the design problems have now been overcome. The market has been competitive and any problems with the new model could be disastrous. Preliminary sourcing indicates that Permaseal Limited has a substantially lower price than the other suppliers, including your current supplier Thermalbond Limited. However, the last time you did business with Permaseal Limited was six years ago and at the time you experienced some quality and delivery problems. Required: Explain in detail how you would undertake this sourcing exercise in order to ensure that you select the best possible supplier for the long term.
23 - In which of the following options is the place where the supply and demand of stocks and bonds of joint stock companies meet? a) Capital market (stock exchange) B) leasing NS) venture capital D) factoring TO) franchising
Ay 1 - mcq Company X and Company Y Ahrens Vitamins. Inc., have high market commonality, both geographically and in the market segments in which they compete. Company X, the number two firm in the industry, has undertaken a major strategic attack upon Company Y, the market leader. Which of the following statements is MOST likely to be true? A. Company Y will respond after a long delay as the nutrition supplement industry is a slow-cycle industry. B. As the market leader, Company Y has little to fear from an attack by Company X and will not expend organizational slack ana major response. C. Company Y will respond aggressively because of the high multimarket contact between both companies. D. Company Y will not respond aggressively since this is a strategic move and not a tactical action.
How do driving conditions in Latin America differ from those in the US? What kind of a car do you need to get around in Latin America? Why is a big SUV less useful there than in the US? What kind of EV is Bolivia’s Quantum Motors now offering? What are its specifications? What is the price? How would you rate the price/quality characteristics for driving in Bolivia? Assuming this vehicle can improve with time, which performance characteristics should Quantum seek to improve? What is the biggest performance downside that the firm should seek to transcend? Does Quantum have market potential even in some developed countries? Where in the US or Europe might the Quantum EV be useful?
1.A market will usually be more difficult to enter if there is? a.Patented or proprietary know-how b.Low brand loyalty c.Wide access to distribution channels d.Common technology 2.Which of these situations is likely to cause high bargaining power of suppliers? a.A few large suppliers dominate the market supply b.Many alternative sources of supply c.Resource inputs are not essential to product quality d. Many customers with low brand loyalty 3.Which of these situations is likely to cause high bargaining power of customers? a.A large number of customers b.Full access to information c.The product is differentiated d.None of the foregoing
Considering the situation of potential firms making agreements with incumbents within the framework of the basic assumptions of Bain's limit pricing theory, comprehensively evaluate the necessary explanations and explain the concept of "market entry" according to Bain..

SEE MORE QUESTIONS

Recommended textbooks for you

Understanding Business

Management

ISBN:

9781259929434

Author:

William Nickels

Publisher:

McGraw-Hill Education

Management (14th Edition)

Management

ISBN:

9780134527604

Author:

Stephen P. Robbins, Mary A. Coulter

Publisher:

PEARSON

Spreadsheet Modeling & Decision Analysis: A Pract…

Management

ISBN:

9781305947412

Author:

Cliff Ragsdale

Publisher:

Cengage Learning

Understanding Business

Management

ISBN:

9781259929434

Author:

William Nickels

Publisher:

McGraw-Hill Education

Management (14th Edition)

Management

ISBN:

9780134527604

Author:

Stephen P. Robbins, Mary A. Coulter

Publisher:

PEARSON

Spreadsheet Modeling & Decision Analysis: A Pract…

Management

ISBN:

9781305947412

Author:

Cliff Ragsdale

Publisher:

Cengage Learning

Management Information Systems: Managing The Digi…

Management

ISBN:

9780135191798

Author:

Kenneth C. Laudon, Jane P. Laudon

Publisher:

PEARSON

Business Essentials (12th Edition) (What's New in…

Management

ISBN:

9780134728391

Author:

Ronald J. Ebert, Ricky W. Griffin

Publisher:

PEARSON

Fundamentals of Management (10th Edition)

Management

ISBN:

9780134237473

Author:

Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo

Publisher:

PEARSON

SEE MORE TEXTBOOKS