What is the theory of natural monopoly? Describe the main federal regulatory commissions? What is the new social regulation?© BrainMass Inc. brainmass.com October 25, 2018, 7:13 am ad1c9bdddf
What is the theory of natural monopoly?
The theory of natural monopoly states that in various industries, certain competitors will have created a natural monopoly due to demand + the industry conditions. An electric company is a good example of a natural monopoly. The main electric company/illuminating company has a monopoly in the given area and has been able to establish the resources and relationships needed in order to build effective cost relationships. A competitor enters into the same area as an electric provider but can't offer the same rates because their customer base hasn't yet been established and they haven't yet ...
What is the theory of natural monopoly? Describe the main federal regulatory commissions? What is the new social regulation?
In game theory analysis, what is a "dominant strategy"?
1. In game theory analysis, what is a "dominant strategy"?
2. A firm's most recent annual dividend was $2 per share; its shares sell for $40 in the stock market, and the company expects its dividend to grow at a constant rate of 5% in the foreseeable future. Using the dividend growth (Gordon) model, what would you estimate its equity cost of capital to be? Show all the steps leading to your answer.
3. Two projects have the following NPV's and standard deviations:
Project A Project B
NPV 200 300
Standard deviation 75 100
a) Which of the two projects is more risky? Show all the steps leading to your answer.
4. What are the major ways that the risks of exchange rate changes can be hedged against?
5. What are the ways a multinational corporation can reposition its funds to increase its profits?
6. A function of government is to regulate "natural monopolies."
a) Explain what is a natural monopoly, and
b) Why it requires government regulationView Full Posting Details