What is a<br> purpose of drawing up budgets in a business

Social surplus is the ____________. A. total value from trade in a markettotal value from trade in a market. B. difference betw

shepuryov [24]

Answer:

The correct answer is letter "A": total value from trade in a market.

Explanation:

Canadian economist Alex Tabarrok (born in 1966) explains social surplus as the sum of consumer surplus, producer surplus, and bystanders surplus. Tabarrok takes an integrative approach in consumer surplus by stating <em>social surplus encompasses every economic trade in the market rather than only consumers and producers surplus.</em>

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Besides, Tabarrok believes when there are major external costs or benefits, the market will not reach its social surplus.

4 0

3 years ago

If a regulatory commission imposes upon a nondiscriminating natural monopoly a price that is equal to marginal cost and below av

denpristay [2]

Answer:

The correct answer is letter "D": The firm must be subsidized or it will go bankrupt.

Explanation:

A subsidy is a benefit given to an individual, business or institution, typically by the government. Subsidies are given to promote a social good or economic policy. The government usually provides subsidies in the form of cash or tax breaks, low-rate loans, and certain types of rebates.

In the example, as the commission sets the price of the monopoly products below the average total cost, it will be translated in losses. Then, a subsidy will be necessary to be provided otherwise the company will file for bankruptcy.

3 0

3 years ago

As ________blank, pioneers have the advantage of creating a new market or product category, establishing a commanding initial ma

inessss [21]

As first movers, pioneers have the advantage of creating a new market or product category, therefore establishing a commanding initial market share lead.

The major benefit of being a first mover om a new market or product category is the opportunity to build impactful brand awareness and customer loyalty. That way, first movers can easily dominate the market or product category and maximize early sales, gaining an upper hand against their rivals. They can also adjust their good or service quality as well as refine their marketing strategy with the additional time they get before rivals start to enter the market.

Learn more about first movers at brainly.com/question/28995105

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7 0

1 year ago

Rhonda is a procurement officer for the government and needs to hire a new plumbing company that she could pay a fixed price per

ella [17]

Answer:

comparative cost pricing

Explanation:

In comparative cost pricing strategy different prices charged by different seller is presented to buyer. The buyer has freedom to choose any price option based on comparative analysis of price.

In the question given above plumbing firms have given their prices to Rhonda and she chose lowest price which can be explained by comparative cost pricing.

8 0

3 years ago

Whispering Corporation has retained earnings of $715,700 at January 1, 2020. Net income during 2020 was $1,567,700, and cash div

Setler79 [48]

Answer:

$2,288,740

Explanation:

Preparation of a retained earnings statement for the year ended December 31, 2020

RETAINED EARNINGS STATEMENT

For the Year Ended December 31, 2020

Retained earnings, January 1, as reported $715,700

Correction for overstatement of expenses in

prior period (net of tax) $88,840

Retained earnings, January 1, as adjusted $804,540

($715,700+$88,840)

Add Net income $1,567,700

Less Cash dividends ($83,500)

Retained earnings, December 31 $2,288,740

($804,540+$1,567,700-$83,500)

Therefore retained earnings statement for the year ended December 31, 2020 will be $2,288,740

7 0

3 years ago

What is a purpose of drawing up budgets in a business