Suppose five construction companies have the ability to build a factory overseas to produce a manufactured good. The marginal co
st of building a factory for each construction company is shown in the table below: Producer Marginal Cost Company 1 $1,000,000 Company 2 $1,250,000 Company 3 $1,300,000 Company 4 $1,350,000 Company 5 $1,500,000 If the market price of an overseas factory is $ 1 470 000 , what is the surplus for these five companies?
Producer Surplus is difference between the pice at which producer is willling to spend and the price which he is getting from market for his product. Minimum Price at which producer is willing to spend is Marginal Cost of producing that product. Therefore, Producer surplus is Market Price- Marginal Cost Producer Marginal Cost Market Price Producer SurpusCompany 1 1,000,000 1,470,000 (1,470,000-1,000,000)=470,000Company 2 1,250,000 1,470,000 (1,470,000-1,250,000)=220,000Company 3 1,300,000 1,470,000 (1,470,000-1,300,000)=170,000Company 4 1,350,000 1,470,000 (1,470,000-1,350,000)=120,000Company 5 1,500,000 1,470,000 (1,470,000-1,500,000)=-30,000Total producer surplus= 470,000 + 220,000 + 170,000 + -30,000 = 830,000
The surplus for the five companies is amounting to $830,000
BOD is a 90 degrees angle. Make an equation for that angle. 15+12+x=90. Simplify this to 27+x=90. You need to isolate x, so subtract 27 on each side to get x=63. C is the answer.
