The answer would be between A and D.
Answer:
Consumer Surplus = $1.50
Explanation:
Consumer surplus is the difference between what a consumer is willing to pay for a given amount of goods or services and what he ends up paying.
Therefore,
Consumer surplus = Amount consumer is willing to pay less amount paid
Given that
Elvis is willing to pay 5 + 4 + 4.50 = 13.50 for three
Price of 3 sandwich = 3 × 4 = 12
Consumer surplus = 13.50 - 12
= $1.50
Answer:
c. It refers to an increase in the average level of prices.
Explanation:
Inflation refers to a constant increase in the average prices of goods and services in the economy over time. Inflation means consumers will pay more for a similar basket of goods and services than they did in a previous period. Economists use Inflation as a measure of the rate at which the general prices are rising.
A high rate of Inflation without a corresponding rise in incomes erodes the purchasing power of households and firms. The consumer price index CPI is the common index used to measure the inflation rate. Should the inflation rate increase at a very high rate, governments, through the central bank, applies monetary policies to regulate it.
Answer:
See explanation
Explanation:
We first calculate weighted avg total break even point.
The formula or this is,
Total Break even = Total fixed costs / Weighted avg contribution
Weighted avg contribution = (Contribution of A12 * Weight of A12) + (Contribution of B22 * Weight of B22) + (Contribution of C124 * Weight of C124)
Contribution/ Product =
A12 = 61 - 43 = $18
B22 = 108 - 78 = $30
C124 = 413 - 316 = $97
Thus,
Weighted avg Contribution = (18*0.56) + (30*0.27) + (97*0.17) = $34.67
Total Break even = 249624/ 34.67 = 10085 units in total
Simply multiply total break even units with each products weight to calculate qty for each product to b produced.
A12 = 10085*0.56 = 5647.6 units
B22 = 10085*0.27 = 2722.94 units
C124 = 10085*0.17 = 1714.45 units
as per the sales mix.
We can also calculate how many units of each individual product are required for break even as,
A12 = 249624/18 = 13868 units
B22 = 249624/30 = 8320.8 units
C124 = 249624/97 = 2573.44 units
Hope that helps.
