Answer:
The correct answer is letter "A": total value from trade in a market.
Explanation:
Canadian economist Alex Tabarrok (born in 1966) explains social surplus as the sum of consumer surplus, producer surplus, and bystanders surplus. Tabarrok takes an integrative approach in consumer surplus by stating <em>social surplus encompasses every economic trade in the market rather than only consumers and producers surplus.</em>
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Besides, Tabarrok believes when there are major external costs or benefits, the market will not reach its social surplus.
Answer:
The effect of this error on 2003 ending working capital is that it overstated the ending 2003 working capital.
The error does not have effect on the 2004 ending retained earnings balance.
Explanation:
Let the amount of the commission expense be xxxx.
At the end of 2003, the journal entries should have been as follows:
Debit Commission expense for xxxx
Credie Commission payable for xxxx
Also, we have:
Working capital = Current assets – Current liabilities ………… (1)
From equation (1), current liabilities are understated because commission payable which was not recorded is an item under current liabilities. Since the current liabilities are understated, that indicates that the working capital in equation is overstated. Therefore, the effect of this error on 2003 ending working capital is that it overstated the ending 2003 working capital.
When the 2003 commission expense in the entries above was paid in 2004, it would have been recognized as an expense. This made the error to counterbalance. This implies that the 2004 ending retained earnings balance is still correct despite that there are errors in the earnings of the two years. Therefore, the error does not have effect on the 2004 ending retained earnings balance.
Answer:
0.75
Explanation:
The cross price elasticity measures how a change in price of one good affects the quantity demanded of another good
Cross price elasticity = percentage change in quantity demanded of pens / percentage change in the price of pencils
percentage change in quantity demanded of good A = (150 -100) / 100 = 0.5 = 50%
percentage change in the price of good B = (2.50 - 1.50) / 1.50 = 0.67 = 67 %
Cross price elasticity = 50% / 67% = 0.75
I hope my answer helps you
Answer:
The Net Present Value = - 23056.
Explanation:
Answer:
Pretax income= $28,000
Explanation:
Giving the following information:
A company produces a product with a contribution margin per unit of $36. The company incurs $62,000 in total fixed costs and expects to sell 2,500 units.
The pretax income is calculated by deducting from the total contribution margin the fixed costs.
Pretax income= 2,500*36 - 62,000= $28,000
