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3 years ago

Is producer surplus and economic profit the same thing?

Business

1 answer:

Savatey [412]3 years ago

4 0

Economic profit is equal to total revenue - total cost, or q(P - ATC) where q = quantity, P = price, and ATC = average total cost. This is not the same thing as producer surplus.

When you draw supply and demand, the area between the supply and demand curves all the way up to the equilibrium point represents total surplus. The area above the equilibrium price and below demand is consumer surplus because it is where consumers pay less than what they value a good as. The area under the equilibrium price and above supply is producer surplus. It is the area where the producer can get a good for more than they value it.

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Which memo provided advanced general principles to consider in cases involving corporate wrongdoing in that it makes clear that

Gekata [30.6K]

Answer:

E. Thompson memo

Explanation:

The name 'Thompson Memo' was used to honor the Deputy attorney General that first issued the memo in 2003. His name is Larry Thompson.

The memo was created to distinguished the line between the 'honest mistake' that the company might do and an actual wrongdoings that must be punished by law.

The memo consist of several criteria that future prosecutors can use to determine whether a company should be punished or not. Those criterias are:

- The nature/seriousness of the offense

- Whether they did a similar 'mistake in the past

- Whether the company admit the mistake by their own or whether it's exposed by other people

- Whether the company proposed a remedial action.

8 0

3 years ago

The report of which agency states, "it is paradoxical that obesity is increasing in the us while more people are dieting than ev

allsm [11]

Institute of medicine.

Obesity is one of the main health issues for the USA. Obesity has multiple consequences not only on the obese person per se but also on the health system that has to deal with the multiple side effects of the obesity. This explains the paradox that the report of Institute of medicine is talking about, as the data for obese people increase as well as the data around the sales of dieting product.

5 0

3 years ago

Which statement is true? A. Bonds are generally called at par value.B. A current list of all bondholders is maintained whenever

slavikrds [6]

Answer: Option C

Explanation:

A. Bonds can be called at discount or premium depending upon the interest rate availing in market and the coupon interest rate.

B. In case of bearer bonds no transactions and ownership records are maintained.

C. Indenture is the contract between issuer and holder specifying the duties and obligations of issuer and the rights of holders.

D. Collateralized bonds are backed by a pool of assets while debentures are unsecured bonds .

E. A bondholder can have the right to determine it only when he have the put option with him otherwise the right to call bond lies with the issuer.

8 0

3 years ago

Pharoah Corporation engaged in the following cash transactions during 2020. Sale of land and building $187,600 Purchase of treas

Alla [95]

Answer:

See below

Explanation:

The computation of net cash provided is seen below

Proceeds from issuance of common stock

147,900

Less:

Purchase of treasury stock

($40,100)

Less:

Dividend payment

($89,600)

Less:

Retirement of bonds

($110,000)

Cash flow used by financing activities

($91,800)

3 0

3 years ago

Shamrock Company had net income of $34,000. The weighted-average common shares outstanding were 8,500. The company declared a $3

Leni [432]

Answer:

d) $4.00.

Explanation:

Net Income = $34,000

Common shares outstanding = 8,500 shares

Earning Per share = Net Income for the period / Common shares outstanding

Earning Per share = $34,000 / 8,500 shares

Earning Per share = $4 per share

The company's earnings per share is $4.

Divided declared has nothing to do in the calculation of Earning per share because we just measure the earning against each share which involves net income and number of outstanding shares only.

3 0

3 years ago