1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
A period of macroeconomic expansion followed by a period of macroeconomic contraction is called A. the business cycle. B. an eco
DanielleElmas [232]

Answer:

A. The business cycle

Explanation:

A period of macroeconomic expansion followed by a period of macroeconomic contraction is known as a business cycle. Like the name suggests, a business cycle is a cycle of highs and lows in economic activities.

There are periods of expansion which is often characterized by economic growth, leading to creation of more jobs, robust middle class etc and contraction which is characterized by loss of jobs, shrinking middle class etc in a business cycle.

Other periods of a business cycle may include peak, trough etc.

7 0
3 years ago
This is my mom channel please subscribe ​
hichkok12 [17]

Answer:

This is my mom, channel, please subscribe

Explanation:

6 0
3 years ago
Which statement of cash flow method would require the disclosure of the noncash transaction of acquiring a factory financed enti
Pie

Answer: Direct and indirect statement of cash flows

Explanation: statement of cash flows shows the overall computed inflow and outflow of cash that took place in an organization over a given period of time. It shows how well an organization managed it's cash which is used to settle it's debts and make profit.

The direct method only considers the cash inflow and outflow into account and produces the cash flow from it's operations.

The indirect method considers the net income as the starting point and prepare the inflow and outflow using adjustments.

3 0
3 years ago
Prepare a 2019 individual tax return using the following fact pattern. Compute net tax payable or refund due for Alice and Bruce
Lana71 [14]

Answer:

Oof thats a long question.

Explanation:

4 0
3 years ago
You are offered a chance to buy an asset for $5,250 that is expected to produce cash flows of $750 at the end of Year 1, $1,000
jeyben [28]

The rate of return I would earn if you bought the asset is 16.91.

<h3>What is the internal rate of return?</h3>

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested. It is a capital budgeting method.

IRR can be calculated with a financial calculator

  • Cash flow in year 0 = $-5250
  • Cash flow in year 1 = $750
  • Cash flow in year 2 = $1000
  • Cash flow in year 3 = $850
  • Cash flow in year 4 = $6250

IRR = 16.91%

To learn more about the internal rate of return, please check: brainly.com/question/24172627

8 0
2 years ago
Other questions:
  • An investment is acceptable if its irr:
    8·1 answer
  • Categories of expendituresGilberto and Juanita Ivanov live in Swarthmore, PA. Juanita's father, Lorenzo, lives in SwedenFor each
    9·1 answer
  • VelSad is contemplating the acquisition of Po, Inc. The values of the two companies as separate entities are $32 million and $16
    6·1 answer
  • What is a credit score ​
    9·1 answer
  • What is an advantage of using the multiple-step income statement?
    13·2 answers
  • Providing training for unemployed individuals is primarily intended to reduce
    11·1 answer
  • A municipal dealer quotes a 2 year, 8% term revenue bond at 106. The yield to maturity is:________
    15·1 answer
  • If you want to sell unique wristbands to the 250 participants in a special boating event to raise funds for research for a rare
    13·2 answers
  • The federal unemployment tax is levied on a.employers and is deducted from employees' earnings. b.employees and employers. c.emp
    5·1 answer
  • A machine makes three different components used in a gyroscope. Call these components A, B, and C. The following repeating sched
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!