All categories

3 years ago

Producer surplus is equal to

Business

1 answer:

Alina [70]3 years ago

4 0

Answer:

The correct answer is option b.

Explanation:

Producer surplus refers to the difference between the price a producer would be willing to receive for his product and the price he actually gets.

The difference between total revenue and the total cost is the producer surplus. We can also say that it is the difference between the price per unit and marginal cost. It is the area between the supply curve and the equilibrium price.

You might be interested in

Barry, age 45, works for an advertising company, where he earns $75,000. Barry would like to retire at age 65. He earns 9% on hi

kakasveta [241]

Answer:

$1,064,440.24

Explanation

Age = 45

Retirement = 65 (Retires after 20 years)

Death = 90 (After 25 years of retirement life)

Inflation = 3%

Rate of Return = 9%

Annual Salary = $75,000

Wage replacement ratio = 80%

Retirement Income = $75,000 * 80% = $60,000

Amount required in future to match the current purchasing power

Inflation effect = $60,000 * (1 + 3%)^20

Inflation effect = $60,000 * (1.03)^20

Inflation effect = $60,000 * 1.80611123467

Inflation effect = $108366.6740802

Inflation effect = $108,366.67. ($108,366.67 is needed to Match Purchasing power of $60,000 in 20 Years)

Total amount needed at the age of 65

i = 9%, Fv = 0, Nper = 25, PMT = -$108,366.67

= PV(9%, 33, -108,366.67, 0)

= 1064440.243

= $1,064,440.24

So, Barry need to accumulated $1,064,440.24 as of the day he retires to adequately provide for his retirement lifestyle.

7 0

3 years ago

Barbara Crusher is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following e

Amanda [17]

Solution :

Date Account Debit($) Credit($)

April 2 Cash 27,330

Equipment 14,650

Capital 41,980

April 2 No journal is required on hiring employee

April 3 Supplies 338

Accounts payable 338

April 7 Rent expense 590

Cash 590

April 11 Accounts receivable 929

Service revenue 929

April 12 Cash 3021

Unearned service revenue 3021

April 17 Cash 2535

Service revenue 2535

April 21 Insurance expense 101

Cash 101

April 30 Salary expense 1352

Cash 1352

April 30 Supplies expense 138

Cash 138

April 30 Computer 5841

Capital 5841

3 0

3 years ago

Lightning strikes a home and starts a fire that destroys the structure and its contents. The lightning is the?

LenaWriter [7]

Lightning strikes home and starts a fire that destroys the structure and its contents. The lighting is the Proximate cause.

Subrogation is the term that describes most insurance companies' right to sue against a third party who has caused damage to the insured. This is done to recover the amount of damage paid to the insured by the insurance company for the damage.

The replacement cost covers the retail cost of replacing a broken, damaged, or lost item. The advantage here can be seen in the personal computer example. For example, his $1,500 laptop, purchased two years ago, is worth less than it is now brand new.

Umbrella policies are typically sold for minimum coverage of $1 million, but insurers offer these policies in increments of up to $5 million and sometimes in $100 million increments.

Learn more about Proximate cause here brainly.com/question/14925660

#SPJ4

4 0

1 year ago

Carol Byrd gets a student rate of $30.00 a month. There is a $250 deductible; but no coinsurance payment. She recently received

Elden [556K]

Answer: Company Pays $1640

Carol Bryd pays $410

Explanation:

The total bill is $2300 and the deductible needs to be taken out.

$2300-$250

=$2050

Company Payment.

Company Pays 80% which translates to 0.8

0.8*2050

= $1640 is the company Payment.

Carol then pays the difference which is

$2050 - $1640

= $410

Carol pays $410

6 0

3 years ago

Total 17500 shirts are produced and sold. The selling price is $22, variable cost per unit is $18 and fixed cost is $ 80000. If

scoray [572]

Answer:

please mark me as brainlist please

Explanation:

The basic theory illustrated in (Figure) is that, because of the existence of fixed costs in most production processes, in the first stages of production and subsequent sale of the products, the company will realize a loss. For example, assume that in an extreme case the company has fixed costs of ?20,000, a sales price of ?400 per unit and variable costs of ?250 per unit, and it sells no units. It would realize a loss of ?20,000 (the fixed costs) since it recognized no revenue or variable costs. This loss explains why the company’s cost graph recognized costs (in this example, ?20,000) even though there were no sales. If it subsequently sells units, the loss would be reduced by ?150 (the contribution margin) for each unit sold. This relationship will be continued until we reach the break-even point, where total revenue equals total costs. Once we reach the break-even point for each unit sold the company will realize an increase in profits of ?150.

For each additional unit sold, the loss typically is lessened until it reaches the break-even point. At this stage, the company is theoretically realizing neither a profit nor a loss. After the next sale beyond the break-even point, the company will begin to make a profit, and the profit will continue to increase as more units are sold. While there are exceptions and complications that could be incorporated, these are the general guidelines for break-even analysis.

As you can imagine, the concept of the break-even point applies to every business endeavor—manufacturing, retail, and service. Because of its universal applicability, it is a critical concept to managers, business owners, and accountants. When a company first starts out, it is important for the owners to know when their sales will be sufficient

7 0

2 years ago