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Gelneren [198K]
3 years ago
11

Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for C

hristmas and everyone else Christmas cards. Hugo is willing to spend $200 on the 10 scarves. When he arrives at Macy’s at 5:00 A.M. on Black Friday, he discovers that scarves are on sale for $12 each. Hugo buys 10 scarves and uses the remaining $80 to buy himself a some clothes. How much consumer surplus did Hugo receive from the tenth scarf he purchased?
Business
2 answers:
yarga [219]3 years ago
5 0

Answer:

$8

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the product.

Consumer surplus = willingness to pay - price

The consumer surplus of the 10th scarf :

Willingness to pay for the 10th scarf - price of the scarf

Willingness to pay for the 10th scarf =  $200 / 10 = $20

Consumer surplus = $20 - $12 = $8

I hope my answer helps you

lesantik [10]3 years ago
3 0

Answer:

$80

Explanation:

Consumer surplus can be defined as the difference between what a consumer is willing to pay for a particular product and the amount he actually paid. The amount he actually paid is usually less than what he is willing to pay.

Consumer surplus= willing price - actual price

Hugo is willing to pay $200 for 10 scarfs

That is $200/10

=$20/scarf

Actual price paid is $12/scarf

That is, $12×10

=$120

Consumer surplus per scarf=$20-$12

=$8

This is to say that Hugo has a surplus of $8 per scarf

Total surplus on 10 scarfs can be calculated

Total Consumer surplus=$200-$120

=$80

Or

Multiplying each surplus by 10 scarfs

Each surplus=$8

Then,

Total surplus=$8×10

=$80

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sveta [45]

Answer:

The goodwill is $1.1 million

Explanation:

In this question, first we have to compute the net asset which is shown below:

Net asset = Total asset - total liabilities

where,

Total asset = Land + building + inventory

                  = $1.7 million + $3.4 million + $2.2 million

                  = $7.3 million

And, the total liabilities = long term note payable = $1.5 million

So, the net asset would equal to

= $7.3 million - $1.5 million

= $5.8 million

Now the goodwill equal to

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3 years ago
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mario62 [17]

Answer:

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The rate of return is referred to as the annual return if the time period is typically a year.

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Answer:

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<h2 />

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