All categories

4 years ago

For the case of a perfectly price-discriminating monopolist (ppdm), producer surplus can be calculated as:

Business

1 answer:

Marrrta [24]4 years ago

8 0

Answer:

Explanation:

Producer surplus can be defined as the difference between how much a person can receive by selling a good at the market price versus how much a person would be willing to accept for the given quantity of good.

The Perfect Price Discrimination (1st degree price discrimination) will occur when an organization charges a different price for every unit consumed.

Producer surplus is formally given as PS = TR( q ppdm ) 0 q ppdm MC(q)dq

Where TR is the Total Revenue

For total cost and the definite integral of marginal cost over the range of output, we find that PS = TR( q ppdm ) TC( q ppdm ).

That is the sum of the consumer surplus and producer surplus is the total gains from trade.

You might be interested in

Colin Powell sees leadership as the ability to solve problems. <br> O True <br> O False

mash [69]

Answer:

true

Explanation: Leadership is solving problems.

5 0

4 years ago

Read 2 more answers

The Appliance Depot realizes that many of its customers purchase several appliances at one time and may not have immediate cash

photoshop1234 [79]

Answer:

<u>Financing </u>

Explanation:

Financing refers to usage of money and funds to finance the marketing agencies and promotions, in addition to financing the movement of goods through different channels of distribution.

Retailers usually use credit schemes to induce customers such as, payment in installments with zero interest payments. Such schemes enhance sales and also build consumer trust.

In the given case, Appliance Depot offers credit services whereby customers are granted convenient payment terms such as no down payment and interest free installments. This represents the marketing function of financing wherein the retailer facilitates financing customer's purchase via such credit schemes.

5 0

3 years ago

The process by which management plans, evaluates, and controls investments in fixed assets is called capital investment analysis

rjkz [21]

Answer:

a. True

Explanation:

The process by which management plans, evaluates, and controls investments in fixed assets is called capital investment analysis. This process is also known as capital budgeting.

Generally, capital investment analysis or capital budgeting is used by business firms or governmental agencies to assess and measure the profitability of a long-term investment on a fixed asset such as real estate, machinery or factory equipments etc.

Hence, the management is able to choose the best option for investment after an assessment of which investment would yield a higher level of profits.

8 0

3 years ago

Using PPS sampling, determine the sample size that you want to use for sending accounts receivable confirmations. Draw on the in

8_murik_8 [283]

Answer:

The below solution will guide your believe of what should be appropriate qualitative assumptions for inherent risk.

Explanation:

4 0

3 years ago

Southwestern Bank offers to lend you $50,000 at a nominal rate of 6.5%, compounded monthly. The loan (principal plus interest) m

Mandarinka [93]

Answer:

0.03%

Explanation:

Southwestern Bank

The Effective annual interest rate of Southwestern bank compounded monthly would be

First step

Calculation for the Effective annual rate of Riverside Bank:

rR = (1 + (0.065/12))^12 = 1.067

Second step

Calculation for the Effective annual rate of Midwest Bank:

rM = (1 + (0.07/1))^1 = 1.07

The effective annual rate of Midwest Bank is higher by :

(1.07 -1.067)

=0.003 % or 0.3%

Therefore the higher or lower is the effective annual rate charged by Woodburn versus the rate charged by Southwestern would be 0.03%

7 0

3 years ago