Answer: Total consumer surplus is $27
We calculate Consumer Surplus as follows:
We calculate Consumer Surplus for each person
Person Price Willing Actual Price Consumer Surplus
John 30 20 
Susie 28 20 
Joseph 25 20 
Jessica 23 20 
<u>Jeremy 21 20 
</u>
<u>Total Consumer Surplus 27 </u>
A leverage by is one where there is.
Answer:
$0.65
Explanation:
The unit cost per can of soup transferred to finished goods warehouse during March is the total manufacturing costs incurred by both Mixing and Cooking department and Canning Department divided by the total number of cans of soup transferred.
Both departments incurred $122,900 in manufacturing costs i.e($113,400+$9,500) while the total number of gallons of soup transferred to finished goods warehouse was 190,000 cans
Unit cost per can of soup=$122,900/190,000=$0.65
Answer:
a
Explanation:
A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.
Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible
Answer:
Using the units-of-production method, the amount of depreciation expense the company would report in the income statement prepared for the year-ended October 31, 2018 would be $105,711.
Explanation:
The unit-of-production method is used when the asset value closely relates to the units of output it is able to produce. It is expressed with the formula below:
(Original Cost - Salvage value) / Estimated production capacity x Units/year
Depreciation expense (DE) is: ($520,500 - $5,500) / 28,500 operating hours x 11,700 hours = $211,421 yearly depreciation expense.
Depreciation from May 1 to October 31, 2018 (6 months): $211,421 / 2 = $105,711
