1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kenny6666 [7]
3 years ago
11

f the government imposes a binding price ceiling in a market, then the producer surplus in that market will increase.

Business
1 answer:
Anit [1.1K]3 years ago
6 0

Answer:  This statement is FALSE

Explanation:

Price Ceiling is the maximum price fixed by government , usually less than equilibrium price to make necessity goods affordable to max people.

Producer Surplus is the difference between prevailing price & minimum price needed to induce producers to supply . Diagramaticaly / Graphicaly , it is the vertical difference between supply curve & price level

Implying Ceiling Imposition , the price gets reduced . Assuming unchanged Supply curve , the difference between price & supply curve reduces .  

Hence , Producer Surplus falls  

You might be interested in
Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has alw
svetoff [14.1K]

Answer:

Results are below.

Explanation:

Giving the following information:

Estimated Value Actual Value

Manufacturing overhead cost $732,000 $842,000

Direct labor hours 14,640 hours 16,600 hours

<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 732,000 / 14,640

Predetermined manufacturing overhead rate= $50 per direct labor hour

<u>Now, we can allocate overhead:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 50*16,600

Allocated MOH= $830,000

<u>Finally, the over/under allocation:</u>

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 842,000 - 830,000

Underapplied overhead= $12,000

8 0
3 years ago
Bad Debt Expense info:Allowance for Doubtful Accounts has a credit balance of $1,000. Credit sales are $500,000. Cash sales are
kow [346]

Answer:

Bad Debt Expense $24,000 Dr

Allowance for Doubtful Accounts $24,000 Cr

Explanation:

Data:

BB = Beginning Balance = $1,000

CS = Credit Sales = $500,000

CH = Cash Sales = $500,000

SM = Percentage Sales Method = 5% = 0.05

U = Uncollectible = $25,000

AR = Accounts Receivable = $200,000

ADA = Allowance for Doubtful Accounts = ?

Calculations:

ADA = U - BB = $25,000 - $1,000 = $24,000

Net Realizable Cash Value = AR - ADA = $200,000 - $24,000 = $176,000

Balance in the Allowance Account after the adjusting entry = BB + ADA = $1,000 + $24,000 = $25,000

Journal entry:

Bad Debt Expense $24,000 Dr

Allowance for Doubtful Accounts $24,000 Cr

Hope this helps!

8 0
3 years ago
When the cross price elasticity between good X and other related goods is positive and very low firm X can be assumed to have?
geniusboy [140]

Answer:

c. a significant amount of market power 

Explanation:

Cross price elasticity measures the responsiveness of quantity demanded of a good to the changes in price of another good.

If the cross price elascitiy is postive, the goods are subsituites.

If the cross price elasticity is negative, the goods are complementary goods.

If the cross price elasticitiy is low the firm has market power. It means that it's consumers do not change the quantity demanded when the price of the good changes

If the cross price elasticitiy is high, the market has low market power.

I hope my answer helps you.

3 0
3 years ago
Ball bearings,inc. faces costs of production as follows:
hichkok12 [17]
<span>Ball bearings can face both fixed and variable costs of production. If we take a look at the fixed costs these would be: the cost of the factory, the cost of the machine, the maintenance of the machine which are needed to create the ball bearings etc. The variable costs are: the wages of the employee, the cost of the raw materials, and utilities required to create the ball bearings.</span>
8 0
3 years ago
Read 2 more answers
Consider the market in which clothing producers operate. Suppose productivity decreases in the factory producing jeans. Explain
Salsk061 [2.6K]

Answer:

Consider the market in which clothing producers operate. Suppose productivity decreases in the factory producing jeans. Explain how this event will change the quantity of jeans supplied and the supply of jeans today.

The quantity of jeans supplied decreases.

Explanation:

Since there is decrease in the production of jeans, hence; supply of jeans will be drastically decreased.

6 0
3 years ago
Other questions:
  • In response to the u.s. income distribution trend toward ________, levi-strauss introduced premium levi's capital e line to upsc
    14·1 answer
  • A(n) ________-based ethics code defines corporate values; creates a supportive environment, and, stresses shared accountability
    13·1 answer
  • If the allowance method of accounting for uncollectible receivables is used, what general ledger account is debited to write off
    9·1 answer
  • Based in topic study materials, discuss how servant leadership contributes to competitive advantage in contemporary organization
    12·1 answer
  • Based on the corporate valuation model, the total corporate value of Chen Lin Inc. is $500 million. Its balance sheet shows $110
    15·1 answer
  • The Administrator of the state of Wisconsin has designated the Investment Adviser Registration Depository (IARD) as the approved
    9·1 answer
  • Fredrico has to lead a training for his company. He wants to include a visual element to help engage his audience. What type of
    7·1 answer
  • During the initial Forming stage, where new team members are excited yet concerned that the project work might be difficult, the
    9·1 answer
  • List the 5 tests of whether personal property has become a fixture
    6·1 answer
  • Decision Point: Choosing Your Shake's Packaging You've selected the formula for the turmeric shake. You now need to decide on th
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!