Answer:
C. subtracting the competitive level producer surplus from the producer surplus associated with less output
Explanation:
A deadweight loss refers to a cost to society created as a result of market inefficiency. Market inefficiency occurs when supply and demand are out of equilibrium. It is also known as excess burden.
Deadweight loss is also created due to taxes as they prevent people from purchasing things that they would otherwise as the final price of the product increases.
The deadweight loss associated with output less than the competitive level can be determined by subtracting the competitive level producer surplus from the producer surplus associated with less output
Answer:
Profit of $3000
Explanation:
The exchange rate of a future contract is usually fixed at the time when the contract is buy 100,000 euros at a futures contract price of $1.22.
The Value in dollars at the time is: $122,000
At the maturity spot rate of the euro is $1.25.
The value of the contract is: $125,000
The difference:
$125,000-122,000
=$3000.
Since the maturity spot rate is higher, there is a profit of $3000 from speculating with the futures contract.
Answer:
Dans un environnement de concurrence imparfaite, les entreprises vendent différents produits et services, fixent leurs propres prix, se battent pour des parts de marché et sont souvent protégées par des barrières à l'entrée et à la sortie, ce qui rend plus difficile pour les nouvelles entreprises de les concurrencer.
Explanation:
Answer:
(d) Manufacturing Overhead $8,000 Raw Materials $8,000
Explanation:
This will be an spending associate with the actual overhead.
These materials are indirect, so it should go in the factory overhead account.
They are not associate with any job in particular, so it cannot be capitalize through work in process.
Answer:
Option 1 is correct.
Explanation:
There are two types of externality:
(i) Negative externality
(ii) Positive externality
Negative externality:
Suppose there is an economic transaction initiated between the two partners and this transaction reduces the consumption of third person, then this is known as the negative externality.
For example: Smoking is one of the example of negative externality. Smoking a cigarette is not only present in the consumption bundle of a person who smokes but it also affects the health of the other person who stands near that person. So, it reduces the consumption of non smoker.
