All categories

3 years ago

Calculate Producer Surplus if Reservation Price=20, Price=8, & Quantity=10.

1 answer:

4 0

C. 60
Explanation:
Producer's Surplus means the value producer derives from selling goods. For example, if producer is willing to sell the product for a price 8 but consumers are willing to pay a higher price, let's say 20, then producer achieves a surplus of 12 per unit. Let's calculate the producer's surplus -
As per question, Reservation Price (RP) =20, Price (P) =8, & Quantity (Q) =10
The formula for Producer Surplus (PS) is as follow:
PS = 1/2 (RP - P) x Q
= 1/2 (20-8) x 10 = 60

You might be interested in

When a company uses the online search behavior of customers to develop online advertising aimed at specific customers based on t

dybincka [34]

Answer:

C) Behavioral targeting.

What is Behavioral targeting?

is when a company or marketers analyzes a consumer's behavioral profile -- be it online or in the market itself. Including not only sites visited but what the consumer actually does on those sites.

5 0

2 years ago

I need help on this please…

krok68 [10]

Answer:

D: "Track his expenses for a month"

Explanation:

If he ends up tracking his expenses for a month he'll know what to spend his money on and what not to. (Need or Want)

5 0

3 years ago

ABC Company has elected to adopt the dollar-value LIFO inventory method when the inventory is valued at $125,000. The adoption t

Brut [27]

Answer:

Explanation:

8 0

3 years ago

The amount of money available with people after buying necessities such as food, clothing, and housing is referred to as _____.

Oksi-84 [34.3K]

Answer:

B) discretionary income

Explanation:

Consumer discretionary income is defined as the income that consumers have after paying all their essential needs, e.g. food, rent or mortgage, utilities, etc.

Discretionary income is not equal to disposable income, since disposable income = gross income - taxes

Personal income = gross income, or total income before paying taxes

4 0

3 years ago

The primary operating goal of a publicly-owned firm trying to best serve its stockholders should be to.

Mariana [72]

The primary operating goal of a publicly-owned firm trying to best serve its stockholders should be to maximize the firm's expected EPS, which must also maximize the firm's price per share.

<h3>What is a a publicly-owned firm?</h3>

A publicly-owned firm is a firm that is owned by members of the public who buy shares in the firm and thus become shareholders. Managers are employed to run the firm.

As the value of shares of the publicly-owned firm increases, the wealth of shareholders also increase.

Here is the complete question:

The primary operating goal of a publicly-owned firm trying to best serve its stockholders should be to

a Maximize managers' own interests, which are by definition consistent with maximizing shareholders' wealth.

b. Maximize the firm's expected EPS, which must also maximize the firm's price per share.

c. Minimize the firm's risks because most stockholders dislike risk. In turn, this will maximize the firm's stock price.

d. Use a well-structured managerial compensation package to reduce conflicts that may exist between stockholders and managers.

e Since it is impossible to measure a stock's intrinsic value the text states that it is better for managers to attempt to maximize the current stock price than its intrinsic value.

To learn more about publicly-owned firms, please check: brainly.com/question/26194963

3 0

3 years ago