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Tanzania [10]
2 years ago
11

For each of the scenarios, calculate the surplus and indicate if it is a producer surplus or a consumer surplus. Alice is willin

g to spend $30 on a pair of jeans, and has a coupon for $10 off which she found online. She selects and purchases a $35 pair of jeans which cost $35 pre-discount.
Business
1 answer:
elena-14-01-66 [18.8K]2 years ago
8 0

Answer:

Producer surplus.

Explanation:

Producer surplus is the difference between the price of a product they're willing to sell and the price they're gonna actually received. In this case she is willing to spend $30 + $10 coupon and she buys $35 pair of jeans.

So, she's only paying $30, that means seller is receiving $5 less.

Therefore, producer surplus is $5.

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8 0
2 years ago
Textbook publishers can charge high prices because students enrolled in a class must purchase the specific book that the profess
Rainbow [258]

Answer:

e. Buyers

Explanation:

As per Michael Porter's 5 forces to assess industry attractiveness, following are the five forces:

1. Buyer power

2. Supplier power

3. Threat of substitutes

4. Threat of new entrants

5. Competitive Rivalry

As per the given information, the students represent the buyer power with respect to their negotiation or bargaining power. This means the influence and control buyers exercise over price of products (textbooks) here.

In the given case, the supplier power appears more domineering since buyers, the students have no other option but to buy the updated textbooks beyond a period of time as those books have been suggested by the professor.

3 0
3 years ago
The agricultural extension agent told the farmer that one more crop-dusting will likely add a ton of additional wheat to the har
Pachacha [2.7K]

Answer:

The marginal benefit is greater than the marginal cost of an additional crop-dusting.

Explanation:

Marginal benefit is the extra utility derived from consuming one more unit or a good or service. Is the maximum amount that a consumer can pay for consuming an additional unit of a product or a service.

The concept of marginal benefit focuses on why consumers are ready to pay a specific amount of money for some goods, but refrain from doing the same for another product.

This concept helps companies ensure that the utility of their products does not diminish.

A marginal cost is the additional cost to produce one more unit. It is high initially and drops as production increases.

In the intersection of marginal benefit and cost, is the point where the marginal revenue is equal to the marginal cost.

If the marginal revenue is bigger than the marginal cost, is convenient.

8 0
3 years ago
In two paragraphs, compare secured and unsecured types of credit. Secured sources of credit include title loans and personal loa
grigory [225]

Secure credit is credit that is given with a connection to a piece of collateral, such as a car or a home. This means that, if you were to default on your payments, the lender would be legally entitled to taking possession of the collateral. An example of this is a car loan, which is a loan that is used to purchase a car. On the other hand, an unsecured loan is one that is not protected by any collateral. This means that the lender cannot immediately take your property of you default on the loan. An example of this is a credit card.

In the case of a secured car loan, interests tend to be lower because of the security that the collateral (the car) provides. Moreover, these loans tend to provide interest rates that are fixed, which means that it is easier to plan for this expense and avoid falling behind on payments. The risk for the lender is less with a secured loan, as he is able to take the property and resell it if the borrower is unable to repay the loan. On the other hand, credit card are riskier for the lender (the bank) as they are unsecured, and this means that they are unable to immediately take any property from the borrower who did not repay. Because of this high risk, interest rates also tend to be high.

3 0
3 years ago
During her day, Tiara often works on about eight different cars fixing any problems and making suggestions to customers about ho
mixas84 [53]

Answer:

B, Maintenance, Installation, and Repair.

Explanation:

5 0
2 years ago
Read 2 more answers
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