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Anna [14]
3 years ago
6

Consider a market​ where: Consumer surplus is 250 Producer surplus is 125. If both consumer surplus and producer surplus are​ ma

ximized, what is the amount of the deadweight​ loss? 0 0. ​(round your answer to the nearest​ penny) ​Next, suppose that consumer surplus falls to 180​, but producer surplus rises to 155. What is the change in​ welfare? -35225 negative 25 ​(round your answer to the nearest penny and add the minus sign if necessary​).
Business
1 answer:
mario62 [17]3 years ago
5 0

Answer:

A. Deadweight loss = 125 units.

B. Deadweight loss = 25 units.

Explanation:

In a free market and completely efficient economy, the consumer surplus equals the producer surplus. Both benefits of free trade. When consumers o producers have a minor surplus, necessarily implies a loss on eficiency, usually caused by government regulations like taxes or price ceilings.

The amount of welfare lost is measure by the difference between consumer and producer surplus.

In the first case:

|Consumer surplus - producer surplus| = 25 units

|250- 125| = 125 units

And in the second case:

|180- 155| = 25 units

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org303 According to the textbook, the most important reason for organizations to rely on research is that it ultimately
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Answer:

Explanation:

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Management at Gordon Electronics is considering adopting a bonus system to increase production. One suggestion is to pay a bonus
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Answer:

  • <u><em>4,099 units or more</em></u>

Explanation:

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The standardized value of the variable X is called Z and is calculated with the formula:

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You read the Z-value for which the probability is greater than or equal to 5% in the table for the values of the area to the right of Z. Using probability = area under the curve ≥ 5%, the Z-value is 1.645 (interpolating between p = 0.0495, Z = 1.64 and p = 0.0505, Z = 1.65).

Substituting in the formula for Z:

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the answer to this question is true

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Answer:

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