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3 years ago

What is the relationship between total surplus and economic efficiency?

Business

1 answer:

mrs_skeptik [129]3 years ago

3 0

Answer: When total surplus gets maximized, then economy meet economic efficiency.

Explanation:

Economic efficiency is described as a thinking that there is one possible way to make situation better by imposing a cost on another.

Total surplus is described as the sum of producer and consumer surplus.

It gets maximized in a perfect competition (hit free-market equilibrium).

i.e. It gets maximized when both consumer and producer surplus is maximum, and then the economy meet economic efficiency.

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3 years ago

As inventory and property plant and equipment on the balance sheet are consumed, they are reflected: Select one: A. As a revenue

Dafna11 [192]

Inventory and property, plant, and equipment are shown as an expense on the income statement and on the balance sheet, respectively.

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The income statement and balance sheet both directly and indirectly refer to the expenses. You can better understand how an expense is reflected overall by often reading a company's income statement and balance sheet.

As a result, option (b) is correct.

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2 years ago

Zook company is a wholesaler that buys footballs and then sells them to other businesses, such as sports authority and target. t

Misha Larkins [42]

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4 years ago

g Romans sells the Regular blend for $3.60 per pound and the DeCaf blend for $4.40 per pound. Romans would like to place an orde

Karolina [17]

Romans Food Market, located in Saratoga, New York, carries a variety of specialty foods from around the world. Two of the stores leading products use the Romans Food Market name: Romans Regular Coffee and Romans DeCaf Coffee. These coffees are blends of Brazilian Natural and Columbian mild coffee beans, which are purchased from a distributor from New York City. Because Romans purchases large quantities the coffee beans may be purchased om an as need basis for the price of 10% higher than the market price the distributor pays for the beans. The current market price is $0.47 per pound for Brazilian Natural and $0.62 per pound for Columbian Mild The composition of each coffee blend are as follows:

Bean Regular DeCaf Blend

Brazilian Natural 75% 40%

Columbian Mild 25% 60%

Romans sells the Regular blend for $3.60 per pound and the DeCaf blend for $4.40 per pound. Romans would like to place an order for the Brazilian and Colombian coffee beans that will enable the production of 1000 pounds of Romans Regular coffee and 500 pounds of Romans DeCaf coffee. The production cost is $0.80 per pound for the Regular blend. Because of the extra steps required to produce DeCaf, the production cost for the DeCaf blend is $1.05 per pound. Packaging costs for both products are $0.25 per pound. Formulate a linear programming model that can be used to determine the pounds of Brazilian Natural and Colombian Mild that will maximize the total contribution to profit.

Answer:

$\mathbf{Max \ Z = 2.033 BR + 2.583 BD + 1.868 CR + 2.418 CD}$

Explanation:

From the given information:

The total revenue can be illustrated as :

Total revenue = 3.6 BR + 4.4 BD + 3.6 CR + 4.4 CD

On the other hand; the total cost of the beans is:

= 1.1 (0.47 BR + 0.47 BD + 0.62 CR + 0.62 CD)

= 0.517 BR + 0.517 BD + 0.682 CR + 0.682 CD

Also; The total production cost is :

= 0.8 BR + 1.05 BD + 0.8 CR + 1.05 CD

The total profit = Total revenue - Total Cost of Beans - Total Production Cost

The total profit = $\left[\begin{array}{}3.6 BR + 4.4 BD + 3.6 CR + 4.4 CD\\- (0.517 BR + 0.517 BD + 0.682 CR + 0.682 CD)\\-(0.8 BR + 1.05 BD + 0.8 CR + 1.05 CD)\end{array}\right]$

The total profit = 2.033 BR + 2.583 BD + 1.868 CR + 2.418 CD

Therefore the linear programming model represents the Objective function of the total profit as:

$\mathbf{Max \ Z = 2.033 BR + 2.583 BD + 1.868 CR + 2.418 CD}$

3 0

3 years ago

Metlock Company took a physical inventory on December 31 and determined that goods costing $185,000 were on hand. Not included i

Paha777 [63]

Answer:

$229,890

Explanation:

The formula to compute the ending inventory is shown below:

= Cost of inventory + goods purchased from f.o.b. shipping point + goods sold at f.o.b. destination

= $185,000 + $24,080 + $20,810

= $229,890

We added the goods purchased and goods sold to the cost of inventory so that the accurate value of the ending inventory can come.

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4 years ago

​What is the relationship between total surplus and economic efficiency?

What is the relationship between total surplus and economic efficiency?