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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.

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The following materials standards have been established for a particular product: Standard quantity per unit of output 6.0 meter

kherson [118]

Answer:

See below

Explanation:

First, we have to compute the actual price

Actual price = Actual cost of material purchased × Actual material purchased

= $201,500 ÷ 10,200 metres

= $19.75

Therefore,

Material price variance

= Actual quantity × (Actual price - Standard price)

= 10,200 × ($19.75 - $19)

= 10,200 × $0.75

= $7,650 favourable

3 0

3 years ago

Suppose the marginal benefit of writing a contract is $100, independent of its length. Find the optimal contract length when the

Usimov [2.4K]

Answer:

a. 17.5

b. 12

Explanation:

Given that

Marginal cost = $100

The computation of optimal contract length is given below :-

Marginal benefit = Marginal cost (length )

a. $100 = 30 + 4L

L = 70 ÷ 4

= 17.5

b) 100 = 40 + 5L

L = 60 ÷ 5

= 12

Therefore, for calculating the optimal contract length simply we calculate both the equations equals with marginal benefit to the marginal cost (length)

7 0

4 years ago

True or false. The first word of your answer has to be either true or false.

Lynna [10]

Answer:

sorry I didn't understand your question and thx for points have a nice day :)

5 0

3 years ago

A company has a process that results in 24,000 pounds of Product A that can be sold for $8 per pound. An alternative would be to

Irina-Kira [14]

Answer:

C. Sell now, the company will be better off by $16,000.

Explanation:

If the company sells product A now, it will get:

24,000*$8= $192,000

If the company process product A further, it will get:

24,000*$14= $336,000-160,000= $176,000

So, according to this, if the company sells product A now, it will receive $192,000 and if it processes the product, the gain will be of $176,000. Because of this, it should sell now as the company will be better off by $16,000.

3 0

3 years ago

TRUE or FALSE. A treasury bill must be 13 weeks.

irinina [24]

Hi , I think that the answer is false.

5 0

3 years ago