Answer:
option (c) $600
Explanation:
Given:
Tax = $4 per unit
Initial equilibrium quantity = 2,000 units
Final equilibrium quantity = 1,700 units
Decrease in consumer surplus = $3,000
Decrease in consumer surplus = $4,400
Now,
Deadweight Loss is calculated using the formula:
Deadweight loss
=
× Tax × (Original equilibrium quantity - New equilibrium quantity)
on substituting the respective values, we get
Deadweight loss =
× 4 × (2,000 - 1,700)
or
Deadweight loss = 2 × (3) = $600
Hence,
the correct answer is option (c) $600
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Answer:
a. $1,000 will be recognized as service revenue using the cash basis.
b. $2,400 ($1000 plus $1400) will be recognized as service revenue using the accrual basis.
Explanation:
Given that as of the end of the year, Peaceful Home has collected $ 1,000 from cash-paying customers while Peaceful Home 's remaining customers owe the business $ 1,400.
Revenue to be recognized using;
$1,000 will be recognized as service revenue using the cash basis.
On accrual basis, revenue is recognized when the service has been provided irrespective of whether cash has been collected or not.
A total of $2,400 ($1000 plus $1400) will be recognized as service revenue using the accrual basis.
Answer:
The correct answer is (a)- Integrated cost leadership/differentiation.
Explanation:
Companies that integrate strategies instead of relying solely on a generic strategy are able to adapt quickly and learn new technologies. Products manufactured under the leadership of integrated costs-differentiation strategy are less distinctive than differentiators and the costs are not as low as the cost-leader, but combine the advantages of both approaches. A somewhat distinctive product that is mid-range in price can be a big attraction for customers than a cheap generic product or an especially expensive one.