All categories

3 years ago

A monopolist practicing (perfect) price discrimination has :

Business

1 answer:

Harman [31]3 years ago

8 0

Answer:

Option (d) is correct.

Explanation:

A perfect price discrimination is also known as first degree price discrimination. Under a condition of perfect price discrimination, the firms charge prices according to the willingness of the buyers. So, there will be no consumer surplus and no dead-weight loss because prices of the product are exactly equal to the its marginal cost which makes the market allocative efficient.

You might be interested in

Tanner Company, a subsidiary acquired for cash, owned equipment with a fair value higher than the book value as of the date of c

ladessa [460]

Answer:

retained earnings

Explanation:

5 0

3 years ago

In presidential elections, voters often find that they do not agree with any single candidate in all issues that matter to them

Angelina_Jolie [31]

In presidential elections, voters often find that they do not agree with any single candidate in all issues that matter to them this is known as limited and bundled choice problem.

Option d

Explanation:

In presidential elections, the voter has to select the candidate who is going to have the power of selecting the public services and goods that has to be financed by the tax money given by the voters.

The limited and bundled choice issue reduces the economic efficiency as a politician selects the programs with either positive or negative net benefits. The choices are bundled in that the limited set of candidates would govern over a multiple issues, and the preferences of the voters may not be perfectly aligned with any candidate.

8 0

3 years ago

Fill in the blank

gizmo_the_mogwai [7]

It's all part of promotions

8 0

3 years ago

The information below pertains to Barkley Company for 2015.

alexira [117]

Answer:

a. $1.38

b. anti-dilutive.

Explanation:

Basic Earnings Per Share = Earnings Attributable to Holders of Common Stock / Weighted Average Number of Common Stock Holders

Earnings Attributable to Holders of Common Stock Calculation :

Net income for the year $1,160,000

Less Bond Interest after tax ($2,010,000 × 7% × 80%) ($112,560)

Less Preference Stock dividend ($4,080,000 × 6%) ($244,800)

Earnings Attributable to Holders of Common Stock $802,640

Weighted Average Number of Common Stock Holders Calculation :

Common Stock (5,800,000 / $10) 580,000

Weighted Average Number of Common Stock Holders 580,000

Basic Earnings Per Share = $802,640 / 580,000

= $1.38

Diluted Earnings Per Share = Adjusted Earnings Attributable to Holders of Common Stock / Adjusted Weighted Average Number of Common Stock Holders

Adjusted Earnings Attributable to Holders of Common Stock Calculation :

Earnings Attributable to Holders of Common Stock $802,640

Add Back Bond Interest after tax ($2,010,000 × 7% × 80%) $112,560

Add Back Preference Stock dividend ($4,080,000 × 6%) $244,800

Adjusted Earnings Attributable to Holders of Common Stock $1,160,000

Adjusted Weighted Average Number of Common Stock Holders Calculation

Weighted Average Number of Common Stock Holders 580,000

Add Convertible Bonds ($2,010,000 / $1,000 × 30) 60,000

Add Convertible Preference Shares ($4,080,000/$100 ×3) 122,400

Less Common Stock Options (82,100)

Adjusted Weighted Average Number of Common Stock Holders 680,300

Diluted Earnings Per Share = $1,160,000 / 680,300

= $ 1.70

Conclusion : Convertible Bonds, Convertible Preference Shares and Common Stock Options are anti-dilutive.

6 0

3 years ago

Valet Corporation began operations in 2021. An analysis of Valet's debt securities portfolio acquired in 2021 shows the followin

Alexxandr [17]

Answer:

$20,000

Explanation:

Calculation for What amount should Valet report in its 2021 income statement for unrealized holding loss

Using this formula

2021 income statement for unrealized holding loss=Aggregate cost -Aggregate Fair value

Let plug in the formula

2021 income statement for unrealized holding loss=$ 180,000-$ 160,000

2021 income statement for unrealized holding loss=$20,000

Therefore the amount that Valet should report in its 2021 income statement for unrealized holding loss is $20,000

3 0

3 years ago