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Kisachek [45]
3 years ago
8

If you are willing to purchase a house for $500,000 and you purchase the house for $500,000, this transaction will generate: a.

​$0 worth of buyer surplus and unknown amount of seller surplus. b. ​$0 worth of seller surplus and unknown amount of buyer surplus. c. ​No information provided. d. ​There is no surplus created for either of the party.
Business
1 answer:
Rainbow [258]3 years ago
6 0

Answer:c. No information provided

Explanation:

The fact that the house would be sold for $500.000 does not give us direct information about how much the seller was expecting, only what he or she accepted to sell it for, depending on the conditions it could mean they had no better offer and needed to sell it and therefore accepted what was offered even if it meant to lose a bit o gain much less that what they wanted, so since we are not offered information on the expectations of the seller we cannot say anything about it, then the other options are false, because it could even mean loss and no surplus.

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The Warren Watch Company sells watches for $21, fixed costs are $180,000, and variable costs are $15 per watch.
enyata [817]

Answer:

  • 5,000 watches : $150,000  loss
  • 20,000 watches:  $60,000  (Loss)
  • Break-even point = 30,000  units
  • if the selling price rises to 32  = break even points descends to 10,588 units
  • If the selling price rises to $32 but variable costs rises to $26  , the break even point goes back to 30,000units.

Explanation:

Hi, to answer this question we have to apply the next formula:

Profit = Revenue -cost

Where the revenue is equal to the units sold (x) multiplied by the selling price,

R = 21 x  

And cost is equal to the sum of the fixed and variable costs.

C = 15x + 1800

So:

P = 21x-(15x +180,000)

P = x ( 21-15)- 180,000

  • For 5,000 watches:

P = 5000(21-15)-180,000

P = 5000(6) -180,000

P= 30,000-180,000

P=-$150,000  (loss , since is negative )

  • For 20,000 watches:

P = 20,000(6) -180,000

P = 120,000-180,000

P=-$60,000  (Loss)

  • To find the break even point:

R = C

21x = 15x + 180,000

21x-15x =180,000

6 x = 180,000

x = 180,000/6

x =30,000  units

  • if the selling price rises to 32

32x = 15x + 180,000

32x-15x = 180,000

17x =180,000

x = 180,000/17

x = 10,588 units

It descends,

  • If the selling price rises to $32 but variable costs rises to $26  

32x = 26x+180,000

32x-26x = 180,000

6x = 180,000

x = 180,000/6

x =30,000

The break-even point comes back to 30,000 units.

6 0
3 years ago
Barber and Atkins are partners in an accounting firm and share net income and loss equally. Barber's beginning partnership capit
Ivenika [448]

Answer:

The answer is $304,000

Explanation:

Barber's ending equity is:

Barber's beginning partnership capital balance for the current year plus share of partnership net income minus Barber's withdrawal

Barber's beginning partnership capital balance for the current is $314,000

Share of partnership net income

= $152,000 /2

= $76,000

Barber's withdrawal = $86,000

Therefore, Barber's ending equity is

$314,000 + $76,000 - $86,000

= $304,000

8 0
3 years ago
A securities analyst reports that a cyclical change in non-durable goods has occurred on the downside over the last quarter. Whi
Stella [2.4K]

Answer:

D) Shares in a brewery

Explanation:

Beer is not a durable good, and the security analyst reported non-durable goods are not going to perform well. The analyst didn't specify which non-durable goods would not perform well, but beer is the only possible option. The other three alternatives all relate to durable goods (steel, industries, home appliances).

6 0
3 years ago
The vice president of operations of your company, which makes packaged foods, is thinking about benchmarking manufacturing proce
disa [49]

Answer:

The correct answer is letter "C" and "D": Benchmarking shows the solutions others have found for common problems; Benchmarking allows companies to review their internal processes in an unbiased fashion.

Explanation:

Benchmarking is an analysis that companies make of the best performer in their industries. The objective is to compare the techniques and processes to the top entity to find out which practices can be implemented in the firms to improve their efficiency and effectiveness.

<em>For the comparison to be accurate, the firm must make an unbiased study of its current method of operations. Only then, the firm can review which problems it has in common with the top-industry company and how this corporation overcame the issues.</em>

4 0
3 years ago
Which is greater: 1 hour or 60 minutes?
musickatia [10]

Answer:

both r the same

Explanation:

Stay safe, stay healthy and blessed.

Thank you

5 0
2 years ago
Read 2 more answers
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