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
Tema [17]
3 years ago
15

Five hundred units of good x are currently bought and sold. The marginal buyer is willing to pay $40 for the 500th unit, and the

cost to the marginal seller is $35 for the 500th unit. We know that:_______.a. the equilibrium price of good X is somewhere between $35 and $40.b. the equilibrium quantity of good X exceeds 500 units.c. 500 units is not an efficient quantity of good X.d. all of the above are correct.
Business
1 answer:
dimaraw [331]3 years ago
6 0

Answer:

D : All options are correct

Explanation:

- The marginal buyer is the essence of demand curve while marginal seller is essence of supply curve.

- @ Q = 500 units,    Selling Price is set at SP = $35

- @ Q = 500 units,    Buying Price is set at BP = $40

- Since, SP ≠ BP our equilibrium price would be $ 37.5 assuming the price elasticity of demand and supply are equal. In any case the equilibrium price would lie in between [ 35 , 40 ] such that to prevent a shortage of units in near future.

- Moreover, if the seller decides to sell at price $35 then he must sell goods greater than 500 units to reach the equilibrium profits. However, it could also lead to excess of units or surplus.

- We see that from selling the goods at SP = $35 while the buyer is willing to pay BP = $40 for 500 goods, the seller would be under-profiting and would be earning $5*500 = $2,500 less than he would at equilibrium price of $40 and selling units greater than 500. Hence, 500 goods is not an efficient quantity of goods.

You might be interested in
On July 1, 2019, Cullumber Company pays $12,000 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fis
denis-greek [22]

Answer:

Explanation:

On July 1, 2019, Cullumber Company pays $12,000 to Kalter Insurance Co. for a 3-year insurance contract.

For Cullumber Company:

July 1 Debit:Prepaid Insur $12000

Credit: Bank. $12,000

Being payment for prepaid Insurance.

Dec 31. Credit:prepaid insur $2,000

Debit:Insurance exp $2,000

Being insurance expenses for the year.

For Blossom Company:

July 1 Credit:Unearned Revenue $12000

Debit: Bank. $12,000

Being unearned revenue on Insurance.

Dec 31. Debit:unearned revenue $2,000

Credit: Revenue $2,000

Being insurance revenue for the year.

3 0
3 years ago
A limit buy order is an order to buy if the stock price goes ___ a specified level; a stop buy is an order to buy if the stock p
Lelechka [254]

Answer:

YES

Explanation:

8 0
3 years ago
Understanding opportunity cost
Luda [366]
Given up
Gain
Choices
5 0
3 years ago
Trade schools are also known as which of the following?
Vladimir [108]
The answer is A. Vocational Schools
8 0
3 years ago
Read 2 more answers
Suppose Cook Plus manufactures cast iron skillets. One model is a​ 10-inch skillet that sells for $ 22. Cook Plus projects sales
amid [387]

Answer:

Production budget = 835

Explanation:

<em>T</em><em>he production budgeted for a particular period is the expected units to be produced after adjusting the sales budget figures for opening and closing inventories.  </em>

Production = Sales budget + closing inventory - opening inventory

Inventory at the end of July = 40%×650= 260

Opening inventory = 75

Sales budget = 650

Production budget = 650+ 260  - 75= 835

Production budget = 835

3 0
3 years ago
Other questions:
  • You decide to buy a new car. You talk to friends about it, research mechanical specifications in Consumer Reports, test drive di
    8·1 answer
  • During the course of your examination of the financial statements of the Hales Corporation for the year ended December 31, 2021,
    9·1 answer
  • 'Nagia Steel Pvt. Ltd.' has divided the whole of its business into five departments. Now the
    10·1 answer
  • Mandy’s Inc. is a well-known supplier of industrial goods. While selling goods, it provides personalized benefits to each custom
    7·1 answer
  • Tom, angela, and peter want to become co-owners of a business enterprise. compare their personal liability for the debts incurre
    5·1 answer
  • Among the things that an organization should consider when planning for pandemics are: ________
    14·1 answer
  • Ginger Enterprises began the year with total assets of $500,000 and total liabilities of $250,000.
    15·1 answer
  • Which of the following would prevent a company from receiving reduced penalties under CERCLA?​ a. ​the situation was corrected i
    9·1 answer
  • Ly Company disposed of two different assets.
    13·1 answer
  • What concept is developed from an orderly, predictable environment versus a disorderly, irregular environment and is characteris
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!