Answer: inefficient allocation of sales among sellers
Explanation:
A binding price ceiling is one in which the government imposes a legal minimum price that can be charged for a good, when the equilibrium price is below it. The ceiling creates a shortage in the market which leads to illegal activities, wasted resources and inefficient allocation to consumers.
However, it does not lead to inefficient allocation of sales among sellers.
The answers are the following:
a.
Brandon:
$7,000 + [($10,000/4)×3¿= $8,500
Ryan:
$7,000 + [($10,000/4)×1¿= $7,500
b.
Brandon $7,000
Ryan <span>$7,000</span>
Answer:
By choosing tire A, the consumer will save $0.006 USD ($0.6 cents) per mile.
Information:
- Saving: 120 gl over 60,000 miles
- Gasoline: $3/gl
Explanation:
Total saving in 60,000 miles = 120gl * $3/gl = $360
Total saving in 1 mile = $360/60,000 = $0,006
Answer:
The answer are:
- $62.50 per direct labor hour - for preparation department
- $33.33 per direct labor hour - for processing department
Explanation:
To calculate the departmental overhead cost per direct labor hour we must divide the total overhead cost over the total amount of direct labor hours.
Preparation department: $25,000 / 400 DLH = $62.50 per DLH
Processing department: $20,000 / 600 DLH = $33.33 per DLH
