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Greeley [361]
3 years ago
11

In the market for a particular pair of shoes, Jena is willing to pay $75 for a pair while Jane is willing to pay $85 for a pair.

The actual price that each has to pay for a pair of shoes is $65. What is the combined amount of consumer surplus for Jena and Jane?
a. $130
b. $10
c. $30
d. $215
Business
1 answer:
Basile [38]3 years ago
3 0

Answer:

The correct option is c.$30

Explanation:

In this question, we use the formula of the consumer surplus. The formula is shown below:

Consumer surplus = maximum price willing to pay - actual price

So,

For Jena, the consumer surplus would be equal to

= $75 - $65

=$10

For Jane, the consumer surplus would be equal to

= $85 - $65

=$20

So, the total consumer surplus would be

= Jena consumer surplus + Jane consumer surplus

= $10 + $20

= $30

Hence, the combined amount of consumer surplus for Jena and Jane is $

30

Therefore, the correct option is c.$30

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If the company budgets to need 4000 units to sell for a month, has a beginning inventory of 1000 units and a desired ending inve
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Answer:

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Explanation:

The computation is shown below:

Given that

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So, by considering the above information, the units to be produced is

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3 years ago
A firm's cost of equity is 22%. Its before-tax cost of debt is 13% and its marginal tax rate is 21%. The firm's capital structur
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Answer:

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Explanation:

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It is calculated using the formula below:

WACC = (We×Ke)  +  (Wd×Kd)

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Answer:

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