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Anastaziya [24]
3 years ago
7

There are 100 consumers, each of whom values a concert ticket at a unique whole number dollar amount between $1 and $100. one cu

stomer is willing to pay $1, a second is willing to pay $2, a third is willing to pay $3, and so on. an unlimited number of concert tickets are on sale for $15 each. what is the total consumer surplus in this market
Business
1 answer:
babymother [125]3 years ago
6 0
<span>100 customers each valuing a ticket for a consecutive dollar amount between $1 and $100 would lead to a total available customer value of $5050. If there are 100 tickets available at $15, the market value of the tickets is $1500. People valuing the tickets at less than $15 will reduce the surplus by $62.50, and people valuing the tickets at more than $15 will increase the surplus by $3675. Therefore the total consumer surplus in this market is $3,612.50.</span>
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Use the following information to answer the question: Cost of car: $26,000 Residual value: $6,000 Life: 5 years Using the given
juin [17]
(26000-6000)/5=4000
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7 0
3 years ago
On January 23, 10,000 shares of Tolle Company are acquired at a price of $30 per share plus a $100 brokerage commission. On Apri
Vaselesa [24]

Answer:

January 23rd

Dr Investment in Tolle                 300,100

Cr Cash                                        300,100

(to record the acquired of 10,000 Tolle's shares at $30 each and a brokerage cost of $100)

April 12th

Dr Cash                                 5,000

Cr Dividend Revenue          5,000

(to record dividend revenue from 10,00 Tolle's shares at $0.5 each)

June 10th

Dr Cash                                           135,900

Cr Investment on Tolle                 120,040

Cr Gain on investment disposal   15,860

(to record the sales of 4,000 Tolle's shares at $34 plus $110 commission fees incurred).

Explanation:

All the explanation is given at the end of each transaction. Further explanation as below:

Given there is no information mentioned whether the share acquired is fro 20% to above and the partial disposal of the investment comes quite near to the time of first acquire; we apply the Cost Method for accounting these transactions.

In the June 10th transaction, we have:

- The actual selling price per share = (Selling price x share sold - Brokerage commission) / share sold = ( 34 x 4,000 - 100) / 4,000 = $33.975;

- The cost of share sold per share = ( Purchasing price x share purchase - Brokerage commission)/ share purchased = ( 30 x 10,000 + 100) / 10,000 = $30.01

=> Cost of share recorded ( Cr Investment account) = 30.01 x 4,000 = 120,040;

=> Gain on investment disposal = ( 33.975 - 30.01) x 4,000 = 15,860.

=> Cash receipt = 4,000 x 34 - 100 = $135,900.

3 0
3 years ago
Which bond recommendation would be the MOST safe for an individual who seeks income that is free from federal income tax?
12345 [234]

Answer:

AA-rated revenue bond that is escrowed to maturity.

Explanation:

AA-rated revenue bond that is escrowed to maturity, is the bond recommendation for an individual who seeks income that is free from federal income tax. Escrowed to maturity bond are pre-funded municipal bond and it is backed by the government. The Issuer invests the new bond´s income too high credit securities and also issuer hold proceeds from the new bond issue in a separate escrow account to pay off existing bond when it matures.

3 0
2 years ago
Using the indirect method calculate the amount of net cash flows from operating activities from the following data.
e-lub [12.9K]

Answer:

Net cash: $199,600

Explanation:

First, we need to identify the increase and decrease in accounts:

+) Decrease in Account Payable = Beginning Account Payable - Ending Account Payable = 12,000 - 11,200 =$8,000

+) Decrease in Account Receivable = Beginning Account Receivable - Ending Account Receivable = 20,000 - 17,600 = $2,400

+) Increase in Prepaid Expense = Ending - Beginning = $5,600 - $4,000 = $1,600

Net cash flows from operating activities of the company can be calculated in indirect method as follow:

Net income               $166,000

<em>Adjustments to reconcile the net income to net cash flow from operating activities:</em>

Decrease in account payable              ($11,200)

Depreciation Expense                          $40,800

Amortization of intangible assets         $3,200

Decrease in Account Receivable         $2,400

Increase in Prepaid Expense                ($1,600)

=> Net cash provided = Net income - Decrease in accountable + Depreciation Expense + Amortization of intangible assets + Decrease in Account Receivable - Increase in Prepaid Expense  

= 166,000 - 11,200 + 40,800 + 3,200 + 2,400 - 1,600 = $199,600

Net cash: $199,600

3 0
3 years ago
IBM expects to pay a dividend of $2 next year and expects these dividends to grow at 6​% a year. The price of IBM is $90 per sha
Elena-2011 [213]

Answer:

Cost of equity = 8.22%

Explanation:

Cost of equity = Dividend per share /current market value + growth rate of dividend  

Cost of equity = 2/90 + 6%

Cost of equity = 0.0222 + 6%

Cost of equity =0.0222 + 0.06

Cost of equity = 0.0822

Cost of equity = 8.22%

7 0
2 years ago
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