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Andru [333]
4 years ago
11

Abraham drinks Mountain Dew. He can buy as many cans of Mountain Dew as he wishes at a price of $0.55 per can. On a particular d

ay, he is willing to pay $0.95 for the first can, $0.80 for the second can, $0.60 for the third can, and $0.40 for the fourth can. Assume Abraham is rational in deciding how many cans to buy. His consumer surplus is:_______
a. $0.50.
b. $0.60.
c. $0.70.
d. $1.00.
Business
1 answer:
oksian1 [2.3K]4 years ago
5 0

Answer:

c. $0.70.

Explanation:

The consumer surplus is determined by subtracting Equilibrium price from willing price

Here there are 3 willing prices which are greater than Equilibrium price. The price to buy the forth can is $0.40 which is below the equilibrium price of $0.55, so he will not buy the forth can.

Willing price for first can (W1) = $0.95

Willing price for second can (W2) = $0.80

Willing price for third can (W3) = $0.60

The Equilibrium price (E) is $0.55

Consumer Surplus = (W1 - E) + (W2 - E) + (W3 - E)

Consumer Surplus = ($0.95 - $0.55) + ($0.80 - $0.55) + ($0.60 - $0.55)

Consumer Surplus = $0.40 + $0.25 + $0.05

Consumer Surplus = $0.70.

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Lyrx [107]

The payback period of the project is 3.3 years.

Payback period = initial investment/ annual cash flow

= 50,000/15,000

= 3.3 years.

The time period payback period refers to the amount of time it takes to get better the fee of an funding. surely put, it's miles the period of time an investment reaches a breakeven point. human beings and groups in particular invest their money to receives a commission again, which is why the payback length is so vital.

Payback period in capital budgeting refers back to the time required to recoup the budget expended in an funding, or to attain the ruin-even factor. for example, a $a thousand funding made at the start of 12 months 1 which again $500 at the quit of year 1 and year 2 respectively could have a two-year payback duration.

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5 0
1 year ago
Which is an example of an automatic stabilizer? As real GDP decreases, income tax revenues: 
A. Increase and transfer payments d
oee [108]

Answer:

The correct answer is B. Decrease and transfer payments increase.

Explanation:

Automatic stabilizers soften cyclic fluctuations through their effect on aggregate demand. Indeed, when the economy is in a contractive or recessive phase, the negative or very reduced economic growth generates a decrease in fiscal revenues while higher unemployment increases public expenditures. Consequently, private sector disposable income decreases less than GDP does, thus limiting the contractual effect on aggregate demand, growth and employment. Therefore, the budget balance worsens in this phase by stimulating the economy and facilitating economic recovery. In the opposite sense, in times of expansion, automatic stabilizers generate higher public revenues and lower spending, which allows to increase the public surplus - or reduce the deficit - avoiding excessive expansion that could have negative effects on cycle volatility and price stability.

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3 years ago
The most preferred technique for determining how much life insurance coverage is needed for an individual is:
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5 0
4 years ago
Included in Sage Company’s December 31, 2020, trial balance are the following accounts: Prepaid Rent $5,870, Debt Investments (t
Sunny_sXe [5.5K]

Answer:

Step 1:

Start by setting it up with the divisor 20 on the left side and the dividend 16 on the right side like this:

           

 2 0 ⟌ 1 6  

Step 2:

The divisor (20) goes into the first digit of the dividend (1), 0 time(s). Therefore, put 0 on top:

       0    

 2 0 ⟌ 1 6  

Step 3:

Multiply the divisor by the result in the previous step (20 x 0 = 0) and write that answer below the dividend.

       0    

 2 0 ⟌ 1 6  

       0    

Step 4:

Subtract the result in the previous step from the first digit of the dividend (1 - 0 = 1) and write the answer below.

       0    

 2 0 ⟌ 1 6  

     - 0    

       1    

Step 5:

Move down the 2nd digit of the dividend (6) like this:

       0    

 2 0 ⟌ 1 6  

     - 0    

       1 6  

Step 6:

The divisor (20) goes into the bottom number (16), 0 time(s). Therefore, put 0 on top:

       0 0  

 2 0 ⟌ 1 6  

     - 0    

       1 6  

Step 7:

Multiply the divisor by the result in the previous step (20 x 0 = 0) and write that answer at the bottom:

       0 0  

 2 0 ⟌ 1 6  

     - 0    

       1 6  

        0  

Step 8:

Subtract the result in the previous step from the number written above it. (16 - 0 = 16) and write the answer at the bottom.

       0 0  

 2 0 ⟌ 1 6  

     - 0    

       1 6  

     -   0  

       1 6  

You are done, because there are no more digits to move down from the dividend.

The answer is the top number and the remainder is the bottom number.

Therefore, the answer to 16 divided by 20 calculated using Long Division is:

0

16 Remainder

Explanation:

8 0
3 years ago
"Ethan knows that when he graduates from college and begins looking for a job, he will need to make his resume stand out from al
kakasveta [241]

Answer:

Communicating value

Explanation:

Communicating value involves showing others what makes one's product or skills different and better than others that are available.

What value means to stakeholders in a situation needs to be defined.

Focus is then given to how the skill or product can meet these unique needs.

Also one needs to understand the most effective platform to use in communicating value.

In this instance Ethan wants to make his resume stand out from all the other resumes that the company receives in order to be selected for an interview

He is communicating the value he can add to the company.

5 0
3 years ago
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