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4 years ago

What is consumer surplus? Using real-world data, what information would you need to measure consumer surplus for a product?

Business

1 answer:

Marina86 [1]4 years ago

7 0

Answer:

Consumer surplus is a degree of welfare that people gain from consuming goods and services in a free market.

The informatio needed is the market price of the good or service, and the amount of good consumed. Is necessary too information about the demand curve.

Explanation:

In a free market are millions of consumers that has different preferences for good and services. Some of them are willing to pay more or less than the market price. The consumer surplus is the welfare produced by the lower price that consumers that are willing to pay more, actually pay.

For this analysis is required the demand function, the market price and the equilibrium quantities.

Example: if I love apples, and I'm willing to pay 5 dollars for a kilo, but in the fruit market the price of a kilo is 1 dollar, the market conditions offer a welfare situation where I pay less for something I actually value more.

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X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven

Anastaziya [24]

Answer: 0 years

Explanation:

The payback period calculates the amount of time taken to recoup the initial investment made in a project or in the purchase of a machine or building. It calculates how long the cumulative cash flow generated from a project equals the cost of the project.

The payback period for both machines are zero years because the cumulative cash flow is less than the cost of the machine.

For machine A - cumulative cash flow- $-47,000 is less than -$71,000

For machine B - cumulative cash flow, -$7,000 is less than -$52,000

Explanations on how the figures were derived is found in the attached tables.

7 0

4 years ago

Billy's Goat Coats has a preferred share issue outstanding with a current price of $38.89. The firm last paid a dividend on the

blondinia [14]

Answer:

option (c) 9%

Explanation:

Data provided in the question:

current price of outstanding shares = $38.89

Last Dividend paid = $3.50

Marginal tax rate = 34%

Now,

cost of preferred equity = Dividend ÷ Price per share

thus,

cost of preferred equity = $3.50 ÷ $38.89

cost of preferred equity = 0.0899

cost of preferred equity = 0.0899 × 100%

= 8.99% ≈ 9%

Hence,

The correct answer is option (c) 9%

5 0

3 years ago

For what minimum period of time after the closing of any customer's account must a broker/dealer preserve account cards or recor

blondinia [14]

Answer:

The answer options are:

A. 90 days

B. 1 year

C. 4 years

D. 6 years

Explanation:

FINRA Rules prescribe that broker/dealers preserve for a period of not less than 6 years after the closing of any customer's account, any account cards or records which related to the terms and conditions with respect to the opening and maintenance of the account.

4 0

3 years ago

For each of the items indicate whether its amount affects the bank or book side of a bank reconciliation and is an addition or a

gulaghasi [49]

Answer:

The correct answer is:

a) Unrecorded deposits : bank addition

b) Interest on cash balance : book addition

c) Bank service charges : book subtraction

d) Debit memos : book subtraction

e) Outstanding Checks : bank subraction

f) Credit memos : book addition

g) NSF checks : book subtraction

Do unrecorded deposits require an adjusting journal entry? No

Does interest on cash balance require an adjusting journal entry? Yes

Do bank service charges require an adjusting journal entry? Yes

Do debit memos require an adjusting journal entry? Yes

Do outstanding checks require an adjusting journal entry? No

Do credit memos require an adjusting journal entry? Yes

Do NSF checks require an adjusting journal entry? Yes

8 0

4 years ago

Read 2 more answers

7. Which of the following is NOT a function of money * 3 points A Unit of account B Store of value C Protection against inflatio

Nuetrik [128]

Answer:

C Protection against inflation

Explanation:

As we know that there are three functions of money i.e.

1. Unit of account

2. Store of value

3. Medium of exchange

There is only 3 functions of money that are shown above

So the protection against inflation would not be considered for the same

And, these 3 would represent the functions of money and can be treated as the unit of account, store of value and the medium of exchange

Hence, the option c is correct

5 0

3 years ago