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Darina [25.2K]
2 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
Business
1 answer:
Brrunno [24]2 years ago
5 0

Answer:

It will purchase 3 cans

total consumer surplus    0.70

Explanation:

the market price is 0.55

It will purchase up to three cans. the fourth can he is willing to purchase at 0.40 but the price is 0.55 so it won't trade for that one.

<u>consumer surplus:</u>

difference between the amounts he was willing to pay for each unit and the market price:

first can        0.95 - 0.55 = 0.40

second can 0.80 - 0.55 = 0.25

third can      0.60 - 0.55 = 0.05

total consumer surplus    0.70

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As a result of the change in activity level, the variable cost will change in total because it increases when there is an increase in number of units produced.

The unit variable cost will however remain the same as the company incurs the same variable cost per unit produced.

Find out more on variable cost per unit at brainly.com/question/26373444.

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Now suppose that the supply of new homes put on the market​ dropped, but price still stayed the same at​ $200,000. this could on
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If demand also dropped.

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3 years ago
Ben has ​$2 comma 000 in his savings account and the bank pays an interest rate of 14 percent a year. The inflation rate is 9 pe
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Answer: After Tax Nominal Rate - 12.6%

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Beginning inventory, or opening inventory, is your inventory cost at the beginning of an accounting duration. For that reason, finishing inventory, or last inventory is the cost of the stock at the top of an accounting duration.

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