You Read the Electricity City Utility Company Has Problems

question 186

True/False

You read the Electricity City Utility Company has problems. Its headquarters had an expansive retaining wall collapse during a flood last week. This led to toxic coal ash flows that buried homes and even caused a few fatalities. An editorial claims that the company will not be held accountable to the same standards as the asbestos companies that paid severe fines and even went out of business due to their lack of attention to environmental clean-up. You agree with the writer because you recently studied about the various competitive markets and utility companies clearly fall under monopolistic competition.

---

Definitions:

Market Value

The current price at which an asset or service can be bought or sold in a marketplace.

Book Value

The net value of a company's assets minus its liabilities, often used to determine the value of a company's shares.

Operating Assets

Resources employed in a business's regular activities for income generation, such as money, stock, and machinery.

Static Budget

A fixed budget that does not change or adjust over the budget period, irrespective of changes in actual activity levels.