Answer:
The $200,000 represents the revenue and the $50,000 represents the profit.
Explanation:
Answer:
Deadweight loss
Explanation:
Deadweight loss can be defined as the lost economic surplus when a market is not allowed to adjust to its competitive equilibrium. The deadweight loss includes losses in both supplier and consumer surplus.
A deadweight loss happens when the equilibrium price for a good or a service cannot achieved usually due to external factors, e.g. price ceilings like rent control, specific taxes, etc.
Supply restricted program heavily reduce the amount of products that sold in the market (that mostly came from import) in order to increase the price and income for local business.
But one thing that needed to be considered is, when the price is increased, the demand for that product will decrease at the same time, so eventually the sellers will have to bring the price down again to increase the demand.
Amount of money spent per day = $1800
Cost of overhead expenses per day <span>for labor and materials </span>= $9
Selling price of each camera = $18
a. Let us assume the number of cameras manufactured per day = x dollars
Then
Cost of cameras sold in 1 day = 18x
So
18x = 1800 + 9x
18x - 9x = 1800
9x = 1800
x = 200
From the above deduction, we can conclude that the number cameras sold per day is 200
b. Daily selling amount of 250 cameras = 250 * 18
= 4500 dollars
Daily manufacturing price of 250 cameras = 1800 + (9 * 250)
= 4050 dollars
Then
Daily profit = 4500 - 4050
= 450 dollars
Answer: e) Elena will use test data to validate her model
Explanation:
Test data is a computer program that will help Elena to verify the type of results to expect using some set of inputs.
