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ElenaW [278]
4 years ago
14

g 1)Which of the following strategies are used by business firms to capture consumer surplus?1)A)Two-part tariffsB)Price discrim

inationC)BundlingD)all of the above
Business
1 answer:
irinina [24]4 years ago
6 0

Answer:

D)all of the above

Explanation:

All these are due to increase the producer surplus rather than consumer surplus. Now let's look what these variants actually mean:

1) Price discrimination is a price policy in which at the same moment the same product or service is sold to different customers at different prices, and this difference in price is not justified by the different costs of producing this product or service.

Types of price discrimination according to the classification types of seller behavior:

-Individual discrimination (seller selects individual buyers)

-Group discrimination (seller identifies groups of buyers)

-Product discrimination (seller selects individual products)

2) In industrial economics, the two-tier tariff (or two-part tariff) is a price made up of a fixed part (a subscription or a franchise) and a part proportional to the quantity of goods purchased.  The binomial tariff is widely used in industrial organization because it constitutes the simplest case of price which is not linear compared to the quantity of goods purchased. Furthermore, it can be shown that when the information is not too incomplete, it allows a principal to avoid the problem of double marginalization (the fact that an economic agent in a monopoly situation sets a higher price than that resulting from the confrontation of supply and demand in perfect competition, which allows it to maximize its profit.

3)Bundling is a bundle consisting of several products sold as a unit. Especially common in the gaming industry.

Typical and most popular bundles are the so-called game kits:

-Game console + video game

- Video card (or motherboard) + computer game

A set of games sold as a unit by a set at a fixed price, or by the principle “Pay what you want” for a limited time. In customs practice, the concept of bundles is used to refer to packaging (place) in a container. Then it can be a box (box), a pallet of goods or a bundle. Usually a bundle is an indivisible part, united either by a box (bag, box) or fixed on a pallet.

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The transactions of Spade Company appear below.
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Answer:

Required 1 : General journal entries

A.

Cash $100,750 (debit)

Capital ; K. Spade $100,750 (credit)

B.

Office Equipment  $10,050 (debit)

Trade Payable  $10,050 (credit)

C.

Trade Payable  $10,050 (debit)

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D.

Trade Receivable $2,700 (debit)

Fees Earned $2,700 (credit)

E.

Rent Expense $1,225 (debit)

Cash $1,225 (credit)

F.

Cash $1,125 (debit)

Trade Receivable $1,125 (credit)

Required 2 : Posting Journal Entries to T - Accounts

Cash Account

<u>Debit</u>

Capital ; K. Spade   $100,750

Trade Receivable         $1,125

Totals                        $101,875

<u>Credit</u>

Trade Payable          $10,050

Rent Expense              $1,225

Balance c/d             $90,600

Totals                        $101,875

Capital Account

<u>Debit</u>

Balance c/d        $100,750

Totals                  $100,750

<u>Credit</u>

Cash                    $100,750

Totals                  $100,750  

Office Equipment Account

<u>Debit</u>

Trade Payable        $10,050

Totals                      $10,050

<u>Credit</u>

Balance c/d             $10,050

Totals                      $10,050

Trade Payable Account

<u>Debit</u>

Cash                             $10,050

Totals                           $10,050

<u>Credit</u>

Office Equipment        $10,050

Totals                           $10,050

Trade Receivable Account

<u>Debit</u>

Fees Earned     $2,700

Totals                $2,700

<u>Credit</u>

Cash                   $1,125

Balance c/d       $1,575

Totals                $2,700

Rent Expense Account

<u>Debit</u>

Cash                                   $1,225

Totals                                 $1,225

<u>Credit</u>

Profit and Loss Account   $1,225

Totals                                 $1,225

Fees Earned Account

<u>Debit</u>

Trading Account  $2,700

Totals                    $2,700

<u>Credit</u>

Trade Receivable $2,700

Totals                    $2,700

Explanation:

All transaction are first record in the journal. Be careful to use the account titles provided by the question.

The Posting to general account is the second stage in accounting. Here account balances to be transferred into the trial balance are established.

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Answer:

The highest price for the stock is  $22.00

Explanation:

Hallowell Inc has a free cash flow of $2.5 million and 1.25 million shares.

The cash flow ratio for the company is 11.

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For one stock the cash flow ratio is 11.

Then the highest price we should pay is $22.00.

So we should pay $22.00 for one stock.

Therefore the highest price we should pay for the stock is $22.00          

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3 years ago
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