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Anarel [89]
4 years ago
5

Joss is a marketing consultant Iris and Daphne are potential customers interested in commissioning Joss to undertake a market su

rvey and compile the findings in a report. Iris is willing to pay $500 for the service while Daphne is willing to pay $800. Suppose that the opportunity cost of Joss's time is $1, 200. Assume that Iris and Daphne do not know each other. Which of the following statements is true?
(A) Joss should charge each customer $600, that way he will earn his opportunity cost and it will be fair to both Iris and Daphne.
(B) Joss should charge Iris $500 and Daphne no more than $700, that way he earns his opportunity cost and there is no loss in economic surplus.
(C) Joss should charge Iris $500 and Daphne $800, that way economic surplus is maximized.
(D) Joss should charge Iris $500 but charging Daphne $800 is unfair because it allows Joss to earn more than his opportunity cost.
Business
1 answer:
Norma-Jean [14]4 years ago
8 0

Answer:

(C) Joss should charge Iris $500 and Daphne $800, that way economic surplus is maximized.

Explanation:

Assuming information asymmetries in the market, and Iris and Daphne are incapable of compare their willingness to pay against the average price of the market for this type of service, C is true since Joss maximize the economic surplus by increasing his productivity using the time better than his opportunity cost.

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6 0
4 years ago
Using the following year-end information for WorkFit calculate the acid-test ratio:
ASHA 777 [7]

Answer:

0.97

Explanation:

The computation of the acid-test ratio is given below:

= Quick assets ÷ current liabilities

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= ($58,110 + $14,000 + $58,000 + $5,600) ÷ ($108,000 + $31,900)

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3 years ago
A. Think of a product and describe the stages of production the product goes through.
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6 0
3 years ago
Mark, who recently won a lottery, tells Sean that he will split his lottery winnings with him if Sean can arrange Mark's intervi
Zepler [3.9K]

Answer:

Sean arranging the interview with his boss

Explanation:

Consideration in contract law refers to something of value or a benefit that is exchanged between parties involved in a contract. It is something that party A gives to party B in exchange for another consideration.

Consideration is the main reason why a contract exists.

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3 years ago
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Answer and Explanation:

The computation is shown below;

a. Raw material price variance is

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= ($10 - $11) × ($69,300 ÷ $11)

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b. The raw material usage variance is

= (Standard quantity - actual quantity) × standard price

= (525 × 13 - 6,300) × $10

= $5,250 favorable

In this way it should be calculated

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3 years ago
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