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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  

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Why do governments regulate natural monopolies?
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The government may wish to regulate monopolies to protect the interests of consumers. For example, monopolies have the market power to set prices higher than in competitive markets. The government can regulate monopolies through price capping, yardstick competition and preventing the growth of monopoly power.

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3 years ago
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Exercise 10-24 (Part Level Submission) Oriole Company receives $385,000 when it issues a $385,000, 5%, mortgage note payable to
Vikentia [17]

Answer:

Mortgage Payable Table is prepared in an MS Excel file which is attached with this answer, please find it

Explanation:

The loan which is received by a person for purchase of real estate property or alternatively existing property owner to raise fund from the property. The mortgage are paid with interest over a specific period of time in installment of monthly quarterly semiannually or yearly.

Installment includes both principal payment and Interest Payment.

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Download xlsx
3 0
3 years ago
Oreo cookies are now extremely expensive to purchase. Instead of buying oreo cookies, i now want to buy chips ahoy. What determi
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In economics, the determinant of demand that this scenario fall under , when you go for chips ahoy because Oreo cookies are now extremely expensive is Change in Price of Substitute Good.

What is Substitute Good?

A substitute good  can be regarded as product or service that  is been used as alternative for other goods.

It should be When the price of a substitute good rise, then demand for the other substitute as well will rise.

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Learn more about substitute good at:

brainly.com/question/10504938

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2 years ago
netpass company had 400000 shares of common stock authorized, 360000 shares issued and 160000 shares of treasury stock. the comp
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Answer: $400,000

Explanation:

Only stock that are ISSUED are to be paid dividends on NOT those Authorized.

Even after that, we would still have to remove the Treasury stock because Treasury Stock is stock that was PREVIOUSLY outstanding but was repurchased by the company and so Dividends will not be paid on them.

So now we calculate the Shares Outstanding that are liable for Dividend payment.

That would be,

= 360,000 - 160,000(Treasury Stock)

= 200,000 shares will have dividends paid to them.

Since the dividends are $2.00 per share we then have,

= 200,000 * 2

= $400,000

$400,000 is the total amount of the dividend that will be paid.

3 0
3 years ago
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