All categories

3 years ago

Loss is the value of the economic surplus that is forgone when a market is not allowed to adjust to its competitive equilibrium.

Business

1 answer:

avanturin [10]3 years ago

7 0

Answer:

True (Dead-weight loss )

Explanation:

When the market is not allowed to adjust towards the equilibrium the economics efficiency is lost. When the supply is excessive compared to demand some part of supply remains intact, which means that small of amount of supply does not contribute to economics and allocation efficiency and considered as a dead-weight loss. The supply is forgone because the market is not allowed to stabilise.

You might be interested in

The accounts receivable turnover rate: Multiple Choice Indicates how many times the receivables were converted into cash during

andreev551 [17]

Answer:

Indicates how many times the receivables were converted into cash during the year.

Explanation:

Accounts receivables turnover ratio or Debtor Turnover Ratio(DTR) depicts the number of times a business's receivables are converted into cash within a period.

The ratio is computed as follows:

$\frac{Net\ Credit\ Sales}{Average\ Accounts\ Receivables}$

wherein, Average Accounts Receivables = $\frac{Op.\ debtor\ balance\ +\ Cl.\ debtor\ balance}{2}$

wherein, Op. = Opening

Cl. = Closing

The ratio depicts how often a firm receives the money due from it's debtors during a period and represents how frequently debtors make payments, represented by average collection period which is computed as follows:

= $\frac{365\ days}{DTR}$

6 0

3 years ago

You spent $500 last week fixing the transmission in your car. Now, the brakes are acting up and you are trying to decide whether

maw [93]

Answer:

The answer is a sunk cost.

Explanation:

Sunk cost is irrelevant in present decision making. It is the cost that had already been incurred. It is irreversible.

Here, $500 spent on fixing the transmission does not matter again.

Opportunity cost is wrong because it means the alternative that has been forgone i.e alternative not chosen. For example, if you have an opportunity to either buy milk or bread and you went for bread, the opportunity cost is the cost of milk you didnt buy.

Incremental cost is also wrong. Incremental cost is the cost that was realized because of a decision.

5 0

3 years ago

According to the consumer decision process, after consumers recognize the need for a product, they then engage in:.

lions [1.4K]

Answer:

An information search.

What is information search?

is a stage in the Consumer Decision Process during which a consumer searches for internal or external information.

4 0

3 years ago

Swifty Corporation sells its product for $5600 per unit. Variable costs per unit are: manufacturing, $2800, and selling and admi

galben [10]

Answer:

Am nevoie de Puncte

Explanation:

6 0

3 years ago

John Wiggins is considering the purchase of a small restaurant. The purchase price listed by the seller is $890,000. John has us

Phantasy [73]

Answer:

$763,057

Explanation:

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1-6 = $89,000

Cash flow in year 7 = 79,000

Cash flow in year 8 = 69,000

Cash flow in year 9= 59,000

Cash flow in year 10 = 49,000 + $790,000 = 839,000

I = 11%

Present value = $763,057

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

8 0

3 years ago