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Ksivusya [100]
3 years ago
10

For the following scenario, calculate the surplus and indicate if it is a producer surplus or a consumer surplus. Alice is willi

ng to spend $30 on a pair of jeans, and has a coupon for $10 off she found online. She selects and purchases a $35 pair of jeans, pre-discount.
Alice's
a) consumer
b) producer
Business
1 answer:
Sedaia [141]3 years ago
6 0

Answer:

a) consumer

$5

Explanation:

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

Willingness to pay is the highest amount a consumer would be willing to pay for a product. The willingness to pay in this question is $30.

The price of the goods is $35 but Alice would pay ($35 - $10) = $25

The consumer surplus is $30 - $25 = $5

Producer surplus is the difference between the price of a product and the lowest price a supplier would be willing to sell his product.

I hope my answer helps you.

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3 years ago
The Achilles' heel (or biggest disadvantage/pitfall) of relying heavily on alliances and cooperative strategies is
vredina [299]

Answer:

Becoming dependent on other companies for essential expertise and capabilities.

Explanation:

When a firm comes in alliance with any other firm , the sole motive behind this is to complement each other with they key competencies. They make use of each other strength to grow together.

However it has one disadvantage is that if one rely only on alliance partner for the specific expertise or resources, it creates a sense of dependencies and if the alliance get annexed in future due to some reason, it can hamper the business.

In today's world example can be vividly seen, in Corona virus crisis, any  firm's alliance with Chinese companies may get hurt, as lock-down in china may interrupt major supplies from china.

3 0
3 years ago
Many older companies have changed from a defined-benefit plan to a(n) ________, which is a retirement plan where workers are cre
avanturin [10]

Cash balance plan is a retirement plan where workers are credited with a part of their pay annually and a predetermined rate of interest.

<h3><u>What is a Cash balance Plan?</u></h3>

A defined-benefit pension plan with a lifetime annuity option is referred to as a "cash balance pension plan."

<h3><u>What are some features of Cash balance plans?</u></h3>
  • Based on defined-benefit needs, the financing caps, funding requirements, and investment risk are established.
  • Like a defined-contribution plan, this type of plan is managed on an individual account basis.
  • The advantage of these programs is that age-based contribution caps are available.
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You can learn more about defined pension plans work using the following link:

brainly.com/question/15241364

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6 0
1 year ago
Adamdata, a cell phone brand, is planning to collaborate with a few companies that create software for cell phones. It wants to
liubo4ka [24]

Answer:

B) options-based planning

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Software development life cycle (SDLC) can be defined as a strategic process or methodology that defines the key steps or stages for creating and implementing high quality software applications.

Some of the models used in the software development life cycle (SDLC) are;

I. A waterfall model.

II. An incremental model.

III. A spiral model.

An options-based planning can be defined as a strategic management process which typically involves the maintenance of flexibility by investing simultaneously in a little amount (manner) in various alternative plans.

In this scenario, Adamdata, a cell phone brand, is planning to collaborate with a few companies that create software for cell phones. It wants to try different operating system software for its phones and then buy the company that manufactures the software that is most compatible with its phones. Therefore, Adamdata is most likely using options-based planning.

4 0
3 years ago
A decrease in the supply of a good can be expected to cause ____ in the equilibrium price of the good and ____ in the equilibriu
JulsSmile [24]

Answer:

Increase, Decrease

Explanation:

A decrease in the supply results in many buyers competing for very few goods. If the demand is constant, the quantity supplied and price have an indirect relationship. A decrease in the volume of supplied results in an increase in price. Many buyers will be competing for a few products causing the equilibrium price to increase.

A decrease in supply will cause the quantity available for buyers to buy to decline. Consequently, the volume purchased will be fewer.  Equilibrium quantity will, therefore, decrease.

4 0
2 years ago
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