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3 years ago

If a benevolent social planner chooses to produce less than the equilibrium quantity of a good, then

Business

1 answer:

fgiga [73]3 years ago

5 0

Answer:

B. the value placed on the last unit of production by buyers exceeds the cost of production

Explanation:

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Suppose that the quantity of DVD players sold increased from 200 to 400 when the price fell from $225 to $175. Over this price r

Nataly_w [17]

Answer:

Option D.

Explanation:

Given information:

$Q_1=200, Q_2=400$

$P_1=225, P_2=175$

Formula for price elasticity of demand is

$E_d=\frac{Q_2-Q_1}{P_2-P_1}\times \frac{P_1+P_2}{Q_1+Q_2}$

Substitute the given values in the above formula.

$E_d=\frac{400-200}{175-225}\times \frac{225+175}{200+400}$

$E_d=\frac{200}{-50}\times \frac{400}{600}$

$E_d=-\frac{8}{3}$

$E_d\approx -2.67$

Absolute value is

$|E_d|= |-2.67|=2.67$

The absolute value of the price elasticity of demand for DVD players is 2.67.

Therefore, the correct option is D.

6 0

2 years ago

Behavioral economistsLOADING... attribute some consumer behavior to the endowment effect. Which of the following is an example o

mestny [16]

Answer: Option C

Explanation: As per the subject matter of behavioral economics, endowment effect refers top the phenomenon under which it is assumed that a rational individual will retain a commodity he or she already owns rather than acquiring the same commodity if he do not own it.

Hence from the above we can conclude that correct option is C as it states that one will not sell a painting even though at a price that the holder would pay to purchase it himself.

6 0

3 years ago

You have just won the state lottery and have two choices for collecting your winnings. You can collect $109,000 today or receive

miskamm [114]

Answer: Im not doing the math but Option 2 is the better option

Explanation:

6 0

2 years ago

In an international communication process carried out by a company, the sales force of the company that conveys the encoded mess

Brums [2.3K]

Answer: message channel

Explanation:

In an international communication process carried out by a company, the sales force of the company that conveys the encoded message to the intended receiver acts as a message channel.

The sales force are said to act as a.mesage channel because they are the ones that pass the message across to the intended receiver.

4 0

3 years ago

True Vibgyor Inc. sells its e-book readers at the cost price of $15 each. However, the company makes its profits when users have

larisa86 [58]

Answer:

D. Razor -Razor -blade

Explanation:

A razor - razor blade business model is a type of business model that involves selling a particular product at a low price in increase sales of complementary goods. It refers to the sales of a core product of a firm at a low price with the expectation that consumer will purchase the more expensive dependent products.

True Vibgyor selling its e-book readers at a $15 and anticipating that the firm will make its profit when the customers buy or download books online is an example of a Razor - razor blade business model.

Hence the answer is D. Razor -Razor -blade

8 0

2 years ago