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sveta [45]
3 years ago
13

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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suppose larry's lariats produces 25,000 lassos and sells each for $10. what is the company's total revenue?
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If Larry's Lariats produces 25,000 lassos and sells each for $10, then the company's total revenue is $250,000.

What is total revenue?
Revenue
is the sum of money that a company makes by charging a certain price for its products or services. It is the starting point of an organization's income statement that establishes how much net income it generates after <u>deducting costs, taxes, and interest</u>. It is one of the most crucial line items for a business as a result. There are numerous perspectives on the same number, despite the fact that it may only be one. These different levels of insight are beneficial to investors, analysts, and businesses. Total revenue as well as marginal revenue are two of the most popular types of revenue.

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The 9 digit number that identifies the bank that a check came from is called?
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Answer: Please refer to Explanation

Explanation:

Hello. Your question was not complete as it lacked certain options.

I have attached it to this answer.

1.Paid $7,000 of accrued taxes at the time the plant site was acquired. LAND because it was an expense that was needed to acquire the land so it is capitalized

2. Paid $200 insurance to cover a possible accident loss on new factory machinery while the machinery was in transit. EQUIPMENT

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4. Paid $21,000 for parking lots and driveways on the new plant site. choose an account title. LAND IMPROVEMENTS.

5. Paid $250 to have the company name and slogan painted on the new delivery truck. choose an account title. EQUIPMENT

6. Paid $8,000 for installation of new factory machinery. choose an account title. EQUIPMENT

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8. Paid $75 motor vehicle license fee on the new truck. LICENSE EXPENSE.

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Explanation:

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A rights offering gives the firm a built-in market for new securities as the security holder are already aware of the company and just buys additional securities.

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