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vivado [14]
3 years ago
13

Jonathan purchased coffee for $5 at Jennifer's coffee shop, although he was willing to pay $9. Jennifer was willing to accept $3

for the coffee. The results of this transaction are a consumer surplus of _____ and a producer surplus of $______
Business
1 answer:
dexar [7]3 years ago
3 0

Answer:

1) Consumer surplus of $4

2) producer surplus of $2

Explanation:

1) The consumer surplus is the difference between the highest price a consumer is willing to pay and the actual market price of the good or service.

Consumer surplus = Maximum price willing to pay - actual price

Consumer surplus = $9 - $5

Consumer surplus = $4

2) The producer surplus is the difference between the market price and the lowest price a producer would be willing to accept.

Producer surplus = Total revenue - total cost.

Total revenue is the revenue received from selling.

Producer surplus = $5 - $3

Producer surplus = $2

Therefore, the results of the transaction between Jonathan and Jennifer are a consumer surplus of $4 and a producer surplus of $2.

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Alecsey [184]

Answer: False

Explanation:

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This is the basic premise that the Net Present Value capital budgeting method works on. It discounts the various cash inflows to the present period, adds them up and then subtracts the cost of the project. If it is positive then the project is off good value.

4 0
3 years ago
Help thanks yo *************************
Allushta [10]

i would say E) cause that 28 people that work when it was raised to $25

8 0
3 years ago
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Explanation:

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6 0
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saveliy_v [14]

Answer:

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