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3 years ago

Suppose the demand for tacos decreases. What will happen to producer surplus in the market for tacos?

Business

1 answer:

velikii [3]3 years ago

6 0

Answer:

it decreases

Explanation:

As a result of the decrease in demand for tacos, the price of tacos would fall, all other things remaining equal.

Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product. As a result of the fall in price, the producer surplus would decrease.

Assume that price of tacos before the fall in demand is $10

the least price, the seller is willing to sell tacos is $3.

Producer surplus = $10 - $3 = $7

After the fall in demand, price falls to $8

producer surplus becomes = $8 - $3 = $5

We can see that producer surplus fell

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Ronnie operates a lawn-care service. On each day, the cost of mowing the first lawn is $15, the cost of mowing the second lawn i

timama [110]

Answer:

b. $60

Explanation:

Produced surplus = Price producer is able to sell - Price producer would be willing to sell

Price the producer is able to sell = Producer surplus + Price producer would be willing to sell

= $100 + ($15 + $25 + $40)

= $180 for 3 lawn

Therefore, if Ronnie charges are customers the same price for lawn mowing, that price is

= $180 / 3

= $60

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2 years ago

What's the difference between gross monthly income, and net monthly income? I'm filling out a loan application, and the applicat

frutty [35]

Your "gross monthly income" is the amount you make BEFORE they take out any deductions.
Your "gross monthly income" is the amount you make AFTER they take out any deductions.

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3 years ago

Boris, Inc. sells a single product for $900 per unit, including a 90-day warranty against defects. It is estimated that 3% of th

Dimas [21]

Answer:

the amount that added to estimated liability is $1,330

Explanation:

The computation of the amount that added to estimated liability is as follows

= 800 units sold × 3% defective - five defective units

= 24 units - 5 units

= 19 units

Now the amount that should be added is

= 19 units × $70 per unit

= $1,330

Hence, the amount that added to estimated liability is $1,330

The same is to be considered

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3 years ago

How do you free market and planned economies differ in the allocation of factors of production

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Answer:

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Explanation:

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3 years ago

Marielle Machinery Works forecasts the following cash flows on a project under consid- eration. It uses the internal rate of ret

ivann1987 [24]

Answer:

a. Project’s IRR is 18.28%

b. Project should be accepted and pursued because it IRR is higher than the required rate of return.

Explanation:

Cash flows are missing a similar question is attached and followoing answer is made accordingly.

Year 0 1 2 3 NPV

Cash flows -$10,000 $0 $7,500 $8,500

PV @ 10% -$10,000 $0 $6,198 $6,386 = $2,584

PV @5% -$10,000 $0 $6,802 $7,342 = $4,144

IRR = 0.05 + ( 4,144 / (4,144-2,584)) x (0.1-0.05) = 18.28%

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3 years ago