In a Small Town the Level of Demand Is Capable

question 29

Multiple Choice

In a small town the level of demand is capable of supporting only two petrol stations. This market is

• A) an example of monopolistic competition.
• B) operating as if it was a monopoly.
• C) perfectly competitive because a homogeneous good is being sold.
• D) a natural duopoly.

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Definitions:

Class 43

Class 43 is a category used in certain tax systems for specific types of assets that qualify for accelerated depreciation, often related to clean energy or energy-efficient equipment.

CCA Rate

The rate of capital cost allowance, which is the amount of depreciation that can be claimed for tax purposes in Canada.

WACC

The method known as Weighted Average Cost of Capital assesses a firm's cost of capital, with a proportional weighting applied to each segment of capital.

Net Investment Cost

The total cost associated with making an investment after subtracting any incentives or credits.