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Citrus2011 [14]
3 years ago
5

Suppose the government imposes a price floor of $28 in this market. If the sellers with the lowest cost are the ones who sell th

e good and the government does not purchase any excess units produced, then total surplus will be

Business
1 answer:
Anit [1.1K]3 years ago
4 0

Answer:

$1120

Explanation:

The chart of the question is in the below image.

Consumer surplus is the area above the price line and below the demand curve whereas producer surplus is the area below the price line and above the supply curve. These areas can be calculated by using the formula of area of a triangle which is

If the government imposed a price floor of $28 then the consumer surplus will be:

A = (1/2)×$40×($48 -$28)

A = $400

The producer surplus = ($28 -$20)×$40 + (1/2)×($20-$0)×($40 -$0)

The producer surplus = $8× $40 + $400 = $320+$400 = $720

Total surplus can be calculated as:

Total Surplus = Consumer surplus + Producer Surplus

Total Surplus = $400 + $720 = $1120

Total Surplus is $1120

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Michael Bilkman has an opportunity to buy a perpetuity that pays $12,450 annually. His required rate of return on this investmen
AlladinOne [14]

Answer:

$266,667.

Explanation:

P / (r-g) = Periodic payment / Interest rate - Growth rate

= 24,000 / (0.12 - 0.03)

= 24,000 / 0.09

= $266,667on:

i think thats it if i am wrong i am very sorry tellme if i am right or wrong.

7 0
3 years ago
What are 2 types of goods/services that lends themselves well to non-price competition?
Luden [163]
<h2>Answer:Non-price competition typically involves promotional expenditures (such as advertising, selling staff, the locations convenience, sales promotions, coupons, special orders, or free gifts), marketing research, new product development, and brand management costs.</h2>

Explanation:

4 0
3 years ago
In response to a shortage caused by the imposition of a binding price ceiling on a market,
Margaret [11]

In response to a shortage caused by the imposition of a binding price ceiling on a market,

a. price will no longer be the mechanism that rations scarce resources.

b. long lines of buyers may develop.

c. sellers could ration the good or service according to their own personal biases.

A binding price ceiling is when the government or an agency of the government sets the maximum price of a good or service below the equilibrium price.

When price of a good is set below the equilibrium price of the good, the producer surplus would decreases and the consumer surplus would increase. This would lead to an excess of demand over supply. As a result, a shortage would occur. As a result of the shortage, black markets would occur.

To learn more about a price ceiling, please check: brainly.com/question/24312330

6 0
2 years ago
A(n) ________ is defined as a business that is independently owned and operated and is not dominant in its field of operations.​
Wittaler [7]
A Small business is defined as a business that is independently owned and operated and is not dominant in its field of operations.
7 0
3 years ago
. George worked 52 hours last week. In his job, any hour past 40 hours is considered overtime. His overtime pay is 1.5 times his
stiks02 [169]
Find how much time he worked overtime.
52-40=12
Find his overtime salary.
22.5*1.5=33.75
Calculate how much money he makes for 40 hours.
40*22.5=900
Calculate how much money he made in overtime.
33.75*12=405
Add both earnings together.
900+405=1305

George earned 1305$ last week.
3 0
3 years ago
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