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Arturiano [62]
3 years ago
15

Alice is willing to spend $30 on a pair of jeans, and has a coupon for $10 off she found online.

Business
1 answer:
oee [108]3 years ago
3 0

Answer:

$5

Explanation:

The computation of Alice's consumer surplus is shown below:

Consumer surplus =  Willing to spend - Market price after considering the discount

where

Willing to spend = $30

Market price equals to

= Purchase a pair of jeans - coupon rate

= $35 - $10

= $25

So, the consumer surplus is equal to

= $30 - $25

= $5

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Scott, a young professional, buys a new BMW, even though a Mercedes would have cost him less. Scott values the BMW brand. This i
ivanzaharov [21]

Answer:

The correct response will be "Paying a premium price ".

Explanation:

  • Each consumption has the fundamental economic intention of obtaining products that have the highest possible and the limit requirements at the lowest competitive prices.
  • And therefore, satisfied customers frequently ignore that instinct because some other manufacturer is still connected to something like the commodity.
5 0
3 years ago
If a $100 drop in the price of a $10,000 car resulted in an increase in the quantity of cars purchased from 100 to 110 and a $10
kati45 [8]

Answer:

Option C

Explanation:

f a $100 drop in the price of a $10,000 car resulted in an increase in the quantity of cars purchased from 100 to 110 and a $100 drop in the price of a $1,000 vacation rental resulted in an increase in the quantity of weekly vacation homes rented from 100 to 110, the price elasticity of demand the same for both the car and the vacation rental.

The elasticity remains unchanged because the percentage change in price and percentage change in quantity are tne same in both cases.

7 0
3 years ago
A manager should attempt to maximize the value of the firm by changing the capital structure if and only if the value of the fir
faust18 [17]

Answer:

Option a                                

Explanation:

In simple words, value maximization refers to the process under which the managers of an organisation tries to make or increase the existing economic profits, that is, the money left with the organisation after paying for the obligations of all the money providers including the lat in hierarchy, the equity shareholders.

Value maximization can be performed by changing the capital structure which affects the payment obligations. The value maximization affects all the stakeholders of the organisation therefore, the decision should be made by tasking into consideration them all.

6 0
3 years ago
Baltimore Inc. reported pretax GAAP income of $45,000 in 2020. In analyzing differences between GAAP income and taxable income,
Reptile [31]

Answer:

Baltimore Inc.

a. Total taxable income = $47,200

b. Income tax payable = $11,800

c. Income tax expense = $11,250

d. Net income = $33,750

Explanation:

a) Data and Calculations:

GAAP determined pretax income =      $45,000

Add nondeductible fines                           5,000

Less exempt municipal interest revenue 2,800

Total taxable income                             $47,200

Income tax (25%)                                      11,800

Income tax expense:

GAAP determined pretax income =      $45,000

Income tax (25%)                                       11,250

Net income                                            $33,750

b) The differences between the GAAP determined pretax income and the tax determined taxable income are due to permanent differences (not temporary).  This implies that there are no deferred tax assets and liabilities and no recoveries from deferred taxes.  However, in reporting its financial performance for the year, Baltimore Inc. still has to comply with the GAAP rules and not the tax rules.

8 0
3 years ago
A company uses the weighted-average method of inventory valuation under a periodic inventory system. The company began the year
Lady bird [3.3K]

Answer:

$935.61

Explanation:

Firstly, we need to calculate weighted average inventory cost at every time anchors (purchase - in or sell - out)

At time t = 1, 64 units @ 5 per unit.

At time t = 2, 64 + 110 = 174 units @ (64 x 5 + 110 x 5)/(64 + 110) = 5 per unit.

At time t = 3, 174 - 90 = 84 units @ 5 per unit.

At time t = 4, 84 + 55 = 139 units @ (84 x 5 + 55 x 6)/(84 + 55) = 5.40 per unit.

At time t = 5, 139 - 90 =  49 units @ 5.40 per unit.

Cost of goods sold for the year = 90 x 5 + 90 x 5.40 = $935.61

7 0
3 years ago
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