Answer:
If Verizon charges an optimal two-part price thenconsumer surplus will be zero.
Explanation:
Given a competitive market the consumer surplus will be the area of the demand curve above the market price
This is, between the intersection point with Y axis and a parallel at market price. Ofter represent as a triangle
If a monopolistic company maximize profit It will decrease this consumer surplus as much as it can to gain it from itself.
First it will set price equal to his marginal revenue.
Then, if possible it will charge two tariff a fixed component and a variable component per usage This will extrac all consumer surplus in favor of the firm leaving a consumer surplus of zero.
If Verizon charges an optimal two-part price thenconsumer surplus will be zero.
Answer:
The depreciation expense for the first two years is $72,000.
Explanation:
Under straight-line method, depreciation expense is (Cost - Residual value) / No of years = ($400,000 - $40,000) / 10 years = $36,000 yearly depreciation expense.
Using this method, the depreciation expense for the first two years is $36,000 x 2 years = $72,000. This amount is regarded as the accumulated depreciation at the end of Year 2 while the net book value would be $400,000 - $72,000 = $328,000.
The Federal Open Market Committee can act almost immediately.
Answer:
$55.50
Explanation:
The bid price is $55,25 is the price applicable to investors would intend to sell their investment.
The ask price is $55.50 is the price applicable to investors who wish to acquire the Fincorp stock.
The prices have been computed in such a way that the broker will always gain, whether an investor is buying or selling his/her stake.
Conclusively, the order given to the broker to buy at market would be executed at the ask price of $55.50, not the other way round.
