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Fantom [35]
3 years ago
10

A consumer values a car at $20000 and it costs a producer $15000 to make the same car. If the transaction is completed at $18000

, the transaction will generate:
Business
1 answer:
solniwko [45]3 years ago
8 0

Answer:

The transaction will generate a buyer surplus of $2,000 and a sellers surplus of $3,000

Explanation:

A consumer values a car at $20,000

It costs a producer $15,000 to generate that same car

The transaction is complete at $18,000

The first step is to calculate the buyer's surplus

= $20,000-$18,000

= $3,000

The seller's surplus can be calculated as follows

= $18,000-$15,000

= $3,000

Hence the transaction will generate a buyer surplus of $2,000 and a sellers surplus of $3,000

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When looking at a firm's behavior, you know it is engaging in price discrimination when it:__________
Andreas93 [3]

Answer:

a. charges a different price to different customers that is not reflective of the firm's costs.

Explanation:

The price discrimination strategy occurs when an organization charges a different price to different customers that does not reflect the company's costs, that is, the company divides its potential customers into groups, usually based on customer perceptions and characteristics and demographic data to evaluate which group of customers is willing to pay more or less for a particular product or service.

This is a strategy that can be favorable for companies to charge a maximum price for their product knowing that it will be accepted, but it is effective in large companies that have a high position in the market.

3 0
2 years ago
Clyde contracts with Deephole Excavation, Inc., to dig an agricultural pond on his farm. Deephole is to keep the excavated grave
anastassius [24]

Answer: Discharged

Explanation:

 Discharge contract is one of the type of concept that helps in making the various types of agreement between the two members or any two companies.

The discharged contract is basically discharged by using the various types of operation of laws and also b terminating the different types of obligations.

According to the given question, the Clyde contracts with the deep-hole excavation Inc., is one of the type of discharged contract for the process of digging an agriculture farm. Therefore, Discharged contract is the correct answer.  

8 0
3 years ago
Crane Company on January 1, 2018, granted stock options for 63000 shares of its $10 par value common stock to its key employees.
attashe74 [19]

The amount of compensation expense Crane should record for 2017 under the fair value method is $207000

<u>Solution:</u>

From the given,

Stock options for 63000 shares

$10 par value common stock

$25 per share and the option price was $20

Total compensation expense = $627000

On calculating we get,

\Rightarrow\frac{627000}{3}= \$207,000

We can conclude that there is $207,000 decrease. Therefore, the correct answer is option c.

3 0
3 years ago
A small consulting company in Waikiki, Hawaii struggles financially because of limited access to economic resources. This compan
Leviafan [203]

Answer:

relationship era.

Explanation:

The consulting company in Waikiki uses technology to built emotional bond with its customers. This determines that the company is using concept of relationship era. Companies believing in Relationship marketing era focus on creating long term relationship with its existing and prospective customers. The business wants to create an emotional relation with its customers so that they remain loyal to the business.

7 0
3 years ago
BruceCo competes in the premium coffee market in the San Francisco area. The biggest competitor, Starbucks controls 48% of the m
kicyunya [14]

Answer:

market share

Explanation:

The market share of a product or business is the portion of the total market that it controls. Market share is usually measured as a percentage of the total market's sales. To calculate market share you need to divide your product's total sales by the market's total sales.

In this case, for every $100 sold by the total coffee market in San Francisco, BruceCo sells $1.

5 0
3 years ago
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