What is the term called when a company pays for a set of assets that is worth more than their company’s worth if they liquidised
1 answer:
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Answer:
19.04%
Explanation:
Please see attachment
Answer:
Explanation:
Please have a look at the attached photos, for this type of question, we need to draw!
a. From this information, derive Bert’s demand schedule. Graph his demand curve for bottled water.
Price Quantity Demanded
More than $7 0
$5 to $7 1
$3 to $5 2
$1 to $3 3
$1 or less 4
b. When the price of a bottle of water was $ 4, Bert bought 2 bottles of water. Consumer surplus of him is shown as area A in Fig. He valued his first bottle of water at 7 dollars, but only pay 4 dollars for it, so the consumer surplus is $ 3. He valued his second bottle of water at 5 dollars, but only pay 4 dollars for it, so the consumer surplus of $ 1. Therefore, the total consumer surplus of $ 3 + $ 1 = $ 4, is in the area of A
c. When the price of a water bottle dropped from $ 4 to $ 2, Bert bought three bottles of water, increasing it. His consumer surplus includes both areas A and B in the figure, an increase in the number of areas B. He gets a $ 5 consumer surplus from the first bottle ($ 7 minus $ 2 ), $ 3 from the second bottle (minus $ 5 The $ 2 price) and $ 1 from the third bottle ($ 3 minus $ 2), with a total consumer surplus of $ 9. Therefore, consumer surplus increased $ 5 (which is the size of area B) when the price of a bottle of water dropped from $ 4 to $ 2.
