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hichkok12 [17]
3 years ago
15

A market has four individuals, each considering buying a grill. Assume that grills come in only one size and model. Martina cons

iders herself a grill-master, and finds a grill a necessity, so she is willing to pay $400 for a grill. Javier is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Kamal wants to impress his friends with his vegetable grilling skills and is willing to pay $320 for a grill. Lina loves grilled shrimp and thinks it might be cheaper in the long run if she grills her own shrimp instead of eating out at a restaurant, so she is willing to pay $200 for a grill. If the market price ofgrills increases from $300 to $320, given the scenario described:
a. Collin is the only consumer who would be affected in terms of surplus.
b. Daniel drops out of the market.
c. Collin drops out of the market.
d. Collin loses any surplus he had.
Business
1 answer:
xxMikexx [17]3 years ago
6 0

Answer: d. Kamal loses any surplus he had.

Explanation:

The Consumer Surplus is defined as the difference between what a customer is willing to pay for a good minus the price of the good/ the price they pay.

Kamal was willing to pay $320 and the price was initially $300 which meant that he had a surplus of $20. The price has now increased to $320 which is the amount he is willing to pay so there is no longer a surplus. Kamal loses any surplus he had.

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Sort the list below according to whether or not an item is an assumption made under perfect competition (aka pure competition or
marshall27 [118]

Answer:

Assumed in perfect Competition

Many buyers

Price taking behavior

Not assumed in perfect Competition

A small number of producers

Significant barriers to entry

Firms selling similar but different goods

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

8 0
3 years ago
Billy owes a liquidated debt of $3,000 to Rayna, his personal weight trainer. Billy sends Rayna a check for $300 on which he has
miss Akunina [59]

Answer:

False

Explanation:

The liability still remains in force unless the lender agrees to forfeit the balance of $2,700. Legally, the lender can sue the borrower to enforce her right in the court and be justified because she has not waived the outstanding liability owed to her.

As in the above case, the lender Rayna has not ignored the balance owed to her by Billy despite receiving $300 as being a full payment marked on the cheque.

This means that the balance of $2,700 is still outstanding against Billy and must be paid to the lender-Rayna because she has not waived the liability.

5 0
3 years ago
The income statement of Pharoah Company is shown below.
Alexus [3.1K]

Answer and Explanation:

The preparation of the operating activities section of the statement of cash flows for the year ended December 31, 2020 is presented below;

Cash flow from operating activities

Net income $1,580,000

Add: depreciation expense $58,970

Add: decrease in account receivable $313,770

Less: Increase in prepaid expense -$167,640

Less: Decrease in account payable -$279,000

Less: decrease in accrued expense payable -$124,020

Add: Decrease in inventory $380,000 ($1,880,000 - $1,500,000)

Cash flow provided by operating activities $1,762,080

8 0
2 years ago
The number of employees in a company is reduced in the ratio 3 : 2 and the salary of each employee is increased in the ratio 4 :
Doss [256]

Answer:

The initial expenditure of the company on salary is Rs. 72.000

Explanation:

First we need to express the employees ratio in letter

3A=B

2C=D

A and C being the amount of employees

B the salary before, D the salary after

They say the salary after is the slary before minus Rs. 12.000

we can express this as D=B-12.000

We know to that the salary of each employee increased 4 to 5

Then C=(5/4)A or A=(4/5)C

We can have the following equation

2((5/4)A)=B-12.000

A=(2/5)(B-12.000)

we use this in the first expression

3(2/5)(B-12.000)=B

1,2B-14400=B

0,2B=14400

B=72.000

6 0
3 years ago
Perpetual Inventory Using LIFOBeginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:Inve
Ivan

Answer:

<u>Date                                      Purchases                    Sales        </u>

May 1                                1,550 units at $44

May 10                                720 units at $45

May 12                                                                    1,200 units

COGS                                                                  (720 x $45 = $32,400)

COGS                                                                  (480 x $44 = $21,120)

TOTAL COGS FOR MAY 12 SALE                       = $53,520

Inventory after sale        1,070 units at $44

May 20                             1,200 units at $48

May 14                                                                      830 units

COGS                                                                  (830 x $48 = $39,840)

TOTAL COGS FOR MAY 14 SALE                       = $39,840

Inventory after sale         1,070 units at $44

                                          370 units at $48

May 31                                                                    1,000 units

COGS                                                                  (370 x $48 = $17,760)

COGS                                                                  (630 x $44 = $27,720)

TOTAL COGS FOR MAY 12 SALE                       = $45,480

Inventory after sale        440 units at $44

Under LIFO (last in, first out), the cost of goods sold is determined using the price of the last units purchased, which means that the most recent (or updated) price is used to calculate COGS.

7 0
3 years ago
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