The potential producer surplus rises as the equilibrium price rises. Producer surplus decreases when the equilibrium price falls. The producer surplus is intimately correlated with changes in the demand curve.
<h3>How do producer surplus and consumer surplus relate to one another?</h3>
- The difference between what a consumer is willing to pay and what they actually spent for a product is referred to as the consumer surplus. The difference between the market price and the lowest price a producer will accept to create a good is known as the producer surplus.
- The difference between what a consumer is willing to pay and what they actually spent for a product is referred to as the consumer surplus. The gap between the market price and the lowest price a producer is willing to accept is known as the producer surplus.
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Answer: e. sum of the dividend yield and the capital gains yields is 8.2 percent
Explanation:
The return of 8.2% that was realized is the sum of the dividend yield and the capital gains yield.
The dividend yield refers to the income earned from dividends issued by the company whose stock you owned divided by the stock price.
The capital yield is the change in price since you bought the stock for instance, buying the stock at a price of $15 and it is now worth $20.
These two yields will combine to give you the return of 8.2% that you realized.
Answer:
$20,000
$80,000
Explanation:
Fixed cost is the cost that does not vary with output.
Fixed costs = cost of interest + other yearly fixed cost
(0.05 x $80,000) + $16,000= $20,000
Total cost is the sum of fixed and variable cost.
Variable cost is the cost that varies with output. If output is zero, variable cost would be zero.
Total cost = fixed cost + variable cost
= $20,000 + $60,000 = $80,000
Process costing is an accounting methodology that traces and accumulates direct costs, and allocates indirect costs of a manufacturing process. Costs are assigned to products, usually in a large batch, which might include an entire month's production.
