Costs and benefits must be put in common terms if they are to be compared.

For the case of a perfectly price-discriminating monopolist (ppdm), producer surplus can be calculated as:

Marrrta [24]

Answer:

Explanation:

Producer surplus can be defined as the difference between how much a person can receive by selling a good at the market price versus how much a person would be willing to accept for the given quantity of good.

The Perfect Price Discrimination (1st degree price discrimination) will occur when an organization charges a different price for every unit consumed.

Producer surplus is formally given as PS = TR( q ppdm ) 0 q ppdm MC(q)dq

Where TR is the Total Revenue

For total cost and the definite integral of marginal cost over the range of output, we find that PS = TR( q ppdm ) TC( q ppdm ).

That is the sum of the consumer surplus and producer surplus is the total gains from trade.

8 0

3 years ago

At the beginning of this year, daily consumption of gasoline in the US amounted to 344 million gallons. It is estimated that for

Shkiper50 [21]

Answer:

335.43 million gallons

Explanation:

price elasticity of demand (PED) = % change in quantity demanded / % change in price

PED = -1.9% / 10% = -0.19, very inelastic

expected price increase $0.40

% change in price = ($3.45 - $3.05) / $3.05 = 13.11%

% change in quantity demanded:

-0.19 = D / 13.11%

D = 2.49%

quantity demanded will decrease by 2.49%, from 344 million gallons to 335.43 million gallons

8 0

3 years ago

A company purchased $11,600 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge, $1,3

dlinn [17]

Answer:

$10,534

Explanation:

Net purchases before discount = $11,600 - $2,080 = $9,520

Since the company paid before 10 days, it takes 3% discount as follows:

Discount = $9,520 * 3% = 9,234.40 = $285.60

Net purchases after discount = $9,520 - $285.60 = $9,234.40

The company pays for the freight charge of $1,300 and net purchases after discount. Therefore, we have:

Cash paid = $9,234.40 + $1,300 = $10,534.40, or $10,534 approximately.

7 0

3 years ago

If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advan

Kisachek [45]

Answer:neither does

Explanation:

3 0

3 years ago

Cushman Company had $846,000 in sales, sales discounts of $12,690, sales returns and allowances of $19,035, cost of goods sold o

Inessa [10]

Answer:

Explanation:

I'm pretty sure that gross profit is simply just sales-Cost of goods sold

846,000-401,850= 444,150

5 0

3 years ago