A natural monopoly can charge a price

Assignment Help Financial Management

Reference no: EM13987807

A natural monopoly can charge a price above MC where MC = MR, because

a. it has economies of scale to produce what others cannot duplicate, i.e. there are natural barriers.

b. there are legal barriers.

c. there are sociological barriers.

d. there are government regulations and restrictions.

Reference no: EM13987807

Questions Cloud

Calculate the total amount of interest accumulated : Bob invests $1000 for a certificate of deposit that pays 5 percent interest and is compounded annually. The certificate matures after 12 years. Calculate the total amount of interest accumulated after 12 years. How much interest will you earn if the ..

The required rate of return on the market : The risk free rate of return is 8 percent, the required rate of return on the market, E(RM) is 12 percent, and stock X has a beta coefficient of 1.4. If the dividend expected during the coming year, D1, is $2.50 and g= 5%, at what price should stock ..

Risk-free rate-expected return on the market portfolio : Given that the risk-free rate is 5%, the expected return on the market portfolio is 20%, and the standard deviation of returns to the market portfolio is 20%, answer the following questions: a. You have $100,000 to invest. How should you allocate you..

Accounting breakeven quantity : A company is considering a project to manufacture a product with the following pro forma cost and sales information: Accounting Breakeven QUANTITY = 10,500 units; Cash Breakeven QUANTITY = 8,200 units; What is the PRICE of the product under this expe..

A natural monopoly can charge a price : A natural monopoly can charge a price above MC where MC = MR, because

Optimal output and hence the supply curve for an oligopoly : The optimal output and hence the supply curve for an oligopoly is

Beginning at the end of this year to reach his target : James Perkins wants to have a million dollars at retirement, which is 15 years away. He already has $200,000 in an IRA earning 8 percent annually. How much does he need to save each year, beginning at the end of this year to reach his target? Assume ..

The market data show that the last trade price : The market data show that the last trade price is $52.57, current bid $52.63, and current ask is $52.70. Sara wants to buy the contracts no higher than $52.65 so she submitted a limit order at $52.65. will her order be executed immediately?

Weighted average cost of capital-capital structure : (Weighted average cost of capital) ABBC Inc. operates a very successful chain of yogurt and coffee shops spread across the southwestern part of the United States and needs to raise funds for its planned expansion into the Northwest. What does ABBCs c..

User Account

All Pages