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2 years ago

what is the producers surplus when barylia engages in trade and the government imposes a tariff of $1

Business

1 answer:

ivolga24 [154]2 years ago

4 0

Answer: $20

Explanation:

When the Government introduces a tariff, it will have the effect of reducing competition for the local producers because import prices will now be higher.

The Producer surplus before the tariff was <em>G</em> because they were forced to sell at the global price. With the imposition of the tariff, the price went to $4 or rather P2. This then increased Producer Surplus to include area <em>F </em>as well.

The total Producer Surplus is therefore, <em>F + G.</em>

This is a triangle so it will be solved for the area by the formula;

= $\frac{1}{2} * base * height$

= $\frac{1}{2}$ * 20 * ( 4 -2)

= 10 * 2

= $20

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Donna independently owns and operates Punkin's Pies, a small business with about 30 employees. She is happy with the size of her

Nataly_w [17]

Donna independently owns and operates Punkin's Pies, a small business with about 30 employees. She is happy with the size of her business and the average profits it generates. From this scenario, Donna's business can be considered an entrepreneurial venture - False.

<u>Explanation:</u>

A person starting a new business with limited amount of resources and plans is called an Entrepreneur. He is the person who takes responsibilities for the risk and rewards that are associated with that business. The idea of the business must be unique and it should focus only on newer products.

A small business and an entrepreneurial ventures differs from each other although they have similar roles. A small business generally deals with a familiar and an product and services that are already established. The persons of small business usually have risks that are already known. In an entrepreneurial venture, only new products and unknown risks are present.

3 0

2 years ago

BR Company has a contribution margin of 9%. Sales are $477,000, net operating income is $42,930, and average operating assets ar

ser-zykov [4K]

Answer:

32.03%

Explanation:

Data provided as per the question

Net operating income = $42,930

Average operating assets = $134,000

The computation of return on investment (ROI) is shown below:-

Return on investment =net operating income ÷ average operating assets

$42,930 ÷ $134,000

= 32.03%

Therefore for computing the return on investment we simply divide average operating assets by net operating income.

5 0

3 years ago

Read 2 more answers

Two firms, A and B, must each choose either a low price or a high price for their product. The payoff matrix shows the profit

ahrayia [7]

Answer: 1. A.Both firms will choose the low price.

2. B. Both firms would choose the high price.

Explanation:

1. If the firms cannot cooperate with each other and must choose simultaneously, both firms will choose the low price.

This is because at the low price both of them are at the highest profit they can make when they are not cooperating. For instance, if Firm B chooses Low Price and Firm A chooses High Price, Firm A will make $3 million while Firm be will make $8 million.

If Firm B decides to have a high price then firm A will take the low price and make $8 million in profit while Firm B makes $4 million. If they are not working together, they will both have to take the low price to make the most profit.

2. If the firms could cooperate with each other, both firms would choose the high price.

The is because they will be making more than competing and getting a lower profit. Should they cooperate they will each get $7 million in profit because they will pick the option they can both make the highest profit at. The is better than competing and making only $5 and $6 million respectively.

If you need any clarification do comment. Cheers.

4 0

2 years ago

A company purchased 300 units for $60 each on January 31. It purchased 150 units for $25 each on February 28. It sold a total of

Daniel [21]

Answer:

Weighted-average inventory costing method Ending Inventory = $ 9666.67= $ 9667

Explanation:

Date Particulars Units Unit Cost Total Cost

January 31 Purchases 300 $ 60 $ 18,000

February 28 Purchases 150 $ 25 $3750

Total 450 $ 21,750

Weighted-average inventory costing method= Total Cost/ Total Units=

$ 21,750/450= $48.33 purchase price per unit

Sales 250 units at $ 70 = $ 17500

Ending Units = Purchases-Sales = 450-250= 200

Weighted-average inventory costing method Ending Inventory = $ 9666.67

200 units at 448.33= $ 9666.67= $ 9667

3 0

3 years ago

Read 2 more answers

If $5000 is invested at an interest rate of 4% each year, what is the value of the investment in 5 years? write an exponential f

Alex Ar [27]

The compound interest amount after 5 years be $6,083.26.

<h3>What is compound interest?</h3>

Compound interest, also known as interest on principal and interest, is the practice of adding interest to the principal amount of a loan or deposit.

Compound interest is when you receive interest on both your interest income and your savings.

If this value was compounded in 5 years, then we are going to utilize the compound interest formula to solve it.

$A = p(1+r)^n$