Answer:
All the answers are attached below. Thanks.
Explanation:
Options:
A. Judy's producer surplus is $270,000
B. Judy's producer surplus is $5000
C. Gary's Consumer surplus is $5000
D. Judy's consumer surplus is $30000.
Answer:
B. Judy's producer surplus is $5000
D. Judy's consumer surplus is $30000.
Explanation: Surplus is a term used to describe the amount spent in excess of the Actual worth of a given asset or a material, the asset or material can either for business, convenience or for leisure.
Producer surplus is the amount which a producer expected to be paid for the supply or production of a particular product and the amount received after supply.
JUDY'S PRODUCER SURPLUS= ACTUAL AMOUNT IT WAS SOLD-THE AMOUNT THE PRODUCER IS WILLING TO SELL
=$90,000-$85,000
=$5,000.
Consumer surplus is the difference between the amount a Consumer is willing to pay for a good or service and the actual amount paid.
CONSUMER SURPLUS= THE AMOUNT THE CONSUMER IS WILLING TO PAY- THE AMOUNT THE CONSUMER PAID
$150,000-$120,000
=$30,000.
Answer: is a seller that has the ability to control to some degree the price of the product it sells.
Explanation:
A price maker is a firm with the ability to influence the market price of its goods or services.
Features of a price makers
1. They are usually monopolies
2. They have a downward-sloping demand curve
3 The goods they produce do not have perfect substitutes,
Answer:
$200,000
Explanation:
The computation of the net revenue is shown below:
= Cash sales gross - Returns and allowances + credit sales gross - discounts + beginning balance of account receivable - ending balance of account receivable
= $80,000 - $4,000 + $120,000 - $6,000 + $40,000 - $30,000
= $200,000
We simply first compute the net cash sales after considering the returns and allowances, and net credit sales after considering the discounts, and deduct the ending balance of account receivable
Answer:
7.20%
Explanation:
In this question, we are to calculate the required return.
From the question we identify the following;
Next dividend = $6.55
required return = ?
Share price = $91
Mathematically;
share price = Dividend/Rate of return
Hence;
Rate of return = Dividend/share price = 6.55/91
Rate of return = 0.071978021978022
= 7.20%
