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2 years ago

What is the space between the buyer’s reservation price and the seller’s reservation price called?

Business

1 answer:

dimulka [17.4K]2 years ago

3 0

The space between the buyer’s reservation price and the seller’s reservation price is called the Total surplus.

What is reservation price for buyer?

A reserve price or reservation price is a word frequently used in auctions and refers to the lowest amount a seller will accept as a successful bid. An alternate, less well-known definition is the highest price a customer will pay for a good or service.

What is producers reservation price?

The minimal price that buyers and sellers are ready to accept in order to buy or sell a good is known as the reservation price. It is the highest price a potential buyer or consumer is willing to pay for a good; for a seller or producer, it is the lowest price they are willing to accept.

Learn more about reservation price: brainly.com/question/13215058

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An indifference curve illustrates ... a) how consumers are indifferent about the location of their own consumption levels relati

Leya [2.2K]

Answer:

Option c) how a consumer might trade off different levels of consumption of each of two goods, while staying at the same utility level.

Explanation:

This is the very definition of an indifference curve. The points in an indifference curve are the combinations of the quantities (level of consumption) of two different goods which will produce the very same utility to the consumer. The consumer will perceive any of those combinations as having the same utility for him.

For example, a usual graph of various indifference curves will look like the graph attached.

In this graph the combination of 2 pairs of shoes and 15 pants will be perceived as having the same utility as the combination of 5 pairs of shoes and 4 pants. Both are combinations in the same indifference curve, the green one, and the utility of any combination lying in that green curve will be rated the same: u = 1.

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3 years ago

Do you believe the decision to start a new

Bad White [126]

I believe that it depends on the individuals skills if they match up well enough to the qualities of starting a business and they must know the risk they are taking with a new business so in most cases I think people should continue to look for employment

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3 years ago

Below are several transactions for Meyers Corporation for 2018.

Marta_Voda [28]

Answer:

$6,900

Explanation:

The cash flow statement includes three types of activities which are listed below:

1. Operating activities: This involves all transactions that after net income impact the working capital. It would subtract the rise in current assets and a reduction in current liabilities, while adding the decline in current assets and an increase in current liabilities.

It would adjust those changes in working capital. In addition, the depreciation cost is added to the net income, and the loss of asset sales is reduced, while the profit on asset sales is deducted

It also involve cash receipts and cash payments.

2. Investing activities: It tracks operations that include buying and selling long-term properties. The buying is a cash outflow whereas the sale is a cash inflow

3. Financing activities: It tracks transactions that have an impact on long-term debt and equity balance of shareholders. Share issue is a cash inflow while redemption and dividend are cash outflows.

So, the classification and the amount of cash flows is shown below:

a. Issue common stock for cash, $44,000 = $44,000 = Financing activities

b. Purchase building and land with cash, $29,000 = ($29,000) = Investing activities

c. Provide services to customers on account, $6,400 = Not applicable as this transaction does not involve any cash.

d. Pay utilities on building, $700 = ($700) = Operating activities

e. Collect $4,400 on account from customers = $4,400 = Operating activities

f. Pay employee salaries, $8,400. = ($8,400) = Operating activities

g. Pay dividends to stockholders, $3,400. = ($3,400) = Financing activities

So, the cash flow would be

= $44,000 - $29,000 - $700 + $4,400 - $8,400 - $3,400

= $6,900

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3 years ago

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Answer:

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3 years ago

Suppose the price of hot wings is $10, the price of beer is $1, and the consumer’s income is $50. In addition, suppose the consu

IgorC [24]

Answer:

a. budget constraint intersects the vertical axis at 25 beers.

Explanation:

A budget constraint shows all the combinations that a consumer might purchase of two given products or services. The total consumption can be represented by a consumption possibilities frontier curve:

originally you could purchase 50 beers or 5 hot wings
then as the price of beer increases to $2, you can only buy 25 beers or 5 hot wings

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3 years ago