Clear calls inc., a telephone service provider, has a large user base mainly because phone calls and messages between all clear calls users are free. when a person switches to a clear calls network, his or her entire network of family and friends is likely to switch to the same network to avail the benefit of free calls and messages. in addition, an existing user who gets a new user to register with clear calls inc. is given a free wireless connection. this has to keep competition away from clear calls. in this scenario, which of the following factors is acting as an entry barrier for clear calls inc.?
a. economies of scale
b. high capital requirement
c. network effects
d. high fixed costs
c. network effects

Electronics assembly inc. is a contract manufacturer that assembles consumer electronics for a number of companies. currently, the operations manager is assessing the capacity requirements as input into a bid for a job to assemble cell phones for a major global company. the company would assemble three models of cell phones in the same assembly cell. setup time between the phones is negligible. electronics assembly inc. operates two 8-hour shifts for 275 days per year. cell phone demand forecast (phones/year) processing time (minutes/phone) mars 47,000 19.8 saturn 35,000 20.7 neptune 7,500 16.2 a. calculate total capacity required by line. b. determine the total operating time available. c. calculate the total number of assembly cells. (round up your answer to the next whole number.)

Salt corporation's contribution margin ratio is 78% and its fixed monthly expenses are $30,000. assume that the company's sales for may are expected to be $89,000. required: estimate the company's net operating income for may, assuming that the fixed monthly expenses do not change.

Which of the following has the largest impact on opportunity cost