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FromTheMoon [43]
1 year ago
12

a study by university of minnesota economist, joel waldfogel, estimated the difference in the actual monetary value of gifts rec

eived and how much the recipients would have been willing to pay to buy them on their own. the study suggested that the average recipient’s valuation was approximately 90% of the actual purchase price.
Business
1 answer:
erica [24]1 year ago
8 0

The deadweight loss is $90.6.

<h3>How to calculate the loss?</h3>

The study suggested that the average recipient's valuation of the gift received was approximately 90% of the actual purchase price of the gift.

This means there's a loss of 10% in value constitute the deadweight loss.

Average amount spent on gift = $906

Percentage loss in value = 10% or 0.10

Calculate the deadweight loss -

= Average amount spent on gifts * Percentage loss in value

DWL = $906 * 0.10

The deadweight loss would be $90.6.

Learn more about dead weight loss on:

brainly.com/question/15415492

#SPJ1

A study by university of minnesota economist, joel waldfogel, estimated the difference in the actual monetary value of gifts received and how much the recipients would have been willing to pay to buy them on their own. the study suggested that the average recipient’s valuation was approximately 90% of the actual purchase price.

Calculate the deadweight loss if the average amount is $906.

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Answer:

33.3%

Explanation:

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Price of preferred stock = $75, which is more than $60

Hence, it would not make sense to convert the preferred stock shared into common stock as of now.

Now, if P is $20, then price of 5 stocks:

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Hence, the Preferred stock price must increase to at least $100 otherwise there will be arbitrage opportunity.

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% increase = (Increase in price ÷ Price of preferred stock) × 100

                  = (25 ÷ 75) × 100

                  = 33.3%

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3 years ago
On June 1, 2018, Andre Company and Agassi Company merged to form Lancaster Inc. A total of 800,000 shares were issued to complet
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Answer:

Lancaster Inc.

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(b) The earnings figures to be used for calculating:

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Conversion ratio = $1,000 bonds to 40 shares

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3 years ago
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Answer:

(B)

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Buyers paid 4$ tax before, later government removes or substracts -$4 tax away causing tax on meal purchased by buyers = $0.

Second,

Prior to removal of the tax on buyers of meals, sellers would have likely included this cost $4 into their cost of meals to buyers.

Now buyers are not imposed tax but the sellers are. Sellers would include this cost into the cost of meals, which is then transferred to buyers.

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Answer:

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Dr Depreciation Account 5,000

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(Being to rectify the amount of Depreciation not debited in depreciation account now recorded)

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