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Vaselesa [24]
3 years ago
12

Consumer surplus is: the difference between the price of a product and consumers' valuation of the last unit of the product purc

hased. the difference between the price of a product and what consumers were willing to pay for the product. the difference between the discounted price of a product and its retail price. the difference between the price paid by consumers and the price required of producers.
Business
1 answer:
Ipatiy [6.2K]3 years ago
8 0

Answer:

the difference between the price of a product and what consumers were willing to pay for the product.

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the product.

For example, the highest amount I am willing to pay for a book is $20. The price of the book is $10. My consumer surplus is $20 - $10 = $10

Producer surplus is the difference between the least amount the seller is willing to sell his product and the price of the product.

I hope my answer helps you

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If the price of flash memory chips used in manufacturing smartphones​ decreases, what will happen in the market for​ smartphones
FromTheMoon [43]
<span>The price of the smartphone will decrease. Users need smart phones having greater memory power. Present market demands more money with increased memory power. If the price of memory chips decrease naturally the companies will increase the memory power of phones and will lead to decrease in the price of the smartphones.</span>
8 0
3 years ago
Why should compensation systems be equitable? How can an organization design an equitable compensation system?
gtnhenbr [62]

Answer:

According to society for human resource management Salary structures are an important component of effective compensation programs and help ensure that pay levels for groups of jobs are competitive externally and equitable internally.

Explanation:

A well-designed salary structure allows management to reward performance and skills development while controlling overall base salary cost by providing a cap on the range paid for particular jobs or locations.

Hope this helps

6 0
3 years ago
The investment a company makes in training employees to perform their duties and redesigning products and processes to improve t
Andre45 [30]

Answer:

True

Explanation:

Prevention Cost is the cost which is incurred to avoid the loss due to defects in the products manufactured, here the cost incurred is as follows:

Training employees that is the benefit from training will be reducing cost and improving quality of the product, therefore, it will be considered as prevention costs.

Further cost incurred for redesigning products and processes will improve the quality of the product and the process therefore this cost can also be considered as prevention costs.

Final Answer

The above statement is true.

4 0
3 years ago
Assume you are using the dividend growth model to value stocks. If you expect the inflation rate to increase, you should also ex
dexar [7]

Answer:

A

Explanation:

the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = interest rate

g = growth rate

Interest rate used is usually nominal, thus, it increases with inflation rate

We can see that the interest rate is an inverse function of the value, thus when inflation increases, interest rate increases and price declines

Example

d1 = 5

r = 10%

g = 5%

5/ (0.1 - 0,05) = 100

when interest rate increases to 20% as a result of inflation, value becomes

5 / 0.2 - 0.05 = 33.33

value decreased with increase in inflation

7 0
3 years ago
Assess whether or not Zara management should move from a decentralised business structure, where branch managers in the shops ha
Vesna [10]

Answer:

Zara management should not move from the decentralized business structure to a centralized one.

The reason is that each branch has a different location and therefore has a different customer base in addition to different cultures that prevail in that geographical region.

It is only possible to take action on time if faced with a problem according to what will suite that branch and is customer friendly. If the head office in Madrid makes decisions, they might not be familiar with all the traditions and might make unfriendly decisions.

6 0
3 years ago
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