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DENIUS [597]
3 years ago
6

Suppose you were assigned the task of choosing a price that maximized economic surplus. What price would you​ choose? ​ Why? A.

Choose a price of zero because that is where consumer surplus​ (the area under the demand curve and above the​ price) is maximized. B. Choose a price ceiling below the equilibrium so that consumers​ won't have to pay too much. C. Choose the price where the quantity demanded equals the quantity supplied because that is the equilibrium condition. D. Choose the price where the quantity supplied is maximized because that is where output is the greatest. E. Choose the highest price possible because that is where producer surplus​ (the area above the supply curve and below the​ price) is maximized.
Business
1 answer:
mote1985 [20]3 years ago
8 0

Answer:

C. Choose the price where the quantity demanded equals the quantity supplied because that is the equilibrium condition.

Explanation:

The equilibrium price is the most ideal because at this price the consume is willing to buy, if price goes above this the consumer may look for an alternative and this will further increase surplus.

Also when there is surplus the suppliers will find a way to sell competitively at the equilibrium price.

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What’s going on here? As soon as Dewey Cheatum and Howe Motors increase the prices on their SUVs, then so does their only compet
IceJOKER [234]

Answer: The answer is oligopolistic competition

Explanation:

Price can be defined as the amount of money for which a goods or services is been offered for sale by the sellers of the goods. It is a sum of money at which the seller and the buyer agrees to exchange a goods or services. The price of a product or services usually shows the cost of the product and the quality of a product or services been offered for sale by the sellers. When a business set a price for their products or services they usually takes into consideration factors such as survival, profit maximization, return on their investment, market share, and the business prestige.

The strategy of setting the same price with your competitors is called oligopolistic competition. In this case, if one competitor wants to be ahead of other competitors in the market, then such a competitor has to include in their product features that will not be found in the product of their competitors, through this process such a competitor would be ahead of their competitors in the market by having the larger share of the market.

7 0
2 years ago
Terrell Trucking Company is in the process of setting its target capital structure. The CFO believes that the optimal debt-to-ca
Semenov [28]

Answer:

a. Terrell's Optimal Capital Structure is 40:60. It means to obtain optimal capital structure in-order to increase value of firm, Terrell should finance 40% of its Assets through Debt and remaining through Common Equity.

b. The optimal Capital Structure is the point where company's WACC is minimized. So, 40:60 is the ratio where Terrell's WACC will be minimized.

Explanation:

The goal of Management is to increase Shareholders' wealth and not to generate profits because wealth is something that is for long-run whereas Profits are temporary. Management would accept projects having negative NPV if its goal is to maximize Profit.

Maximizing Shareholders' wealth means to increase the Share Price whereas Generating a higher EPS is Profit Maximization Strategy. So, you should look for that Capital Structure Point where the Company's Stock Price is Highest.

Thanks!

4 0
2 years ago
Continuing the analysis of Ginnie's Gym Refreshment Bar:
Irina18 [472]

The bundle that is going to maximize profit is going to be Late

<h3>How to find the bundle that would maximize profit</h3>

we have the net profit from early to be 7 + 5 = 12

We have the net profit from late to 6 + 10 = 16

We can see that the value for late is greater at 16 compared to that of the early.

Hence we can say that late has the greatest profit.

Next we have to solve for the profit that is made. This is the net profit.

The solution is given as 16 - 12 = 4

<h3>What is profit maximization</h3>

This is the process where by businesses would try to get the best output possible from the given inputs that they would use in the business. It goal is to be able to maximize the returns that they would make.

Read more on profit maximization here:

brainly.com/question/13464288

#SPJ1

8 0
2 years ago
In the late 1800s, a Frenchman observed that individuals who recovered from a disease were not susceptible to that same disease
hoa [83]

Answer:

The process of "exposing healthy subjects to related or weakened disease agents to protect them from the pathogenic agent is now known as vaccination." But using the syphilis organisms would spread a full-blown serious disease agent. "Mercury and Salvarsan were used to treat syphilis. Although both treatments killed the bacterium, Treponema pallidum, the causative agent of syphilis they also caused rashes, liver damage, loss of limbs and life. These side effects have been attributed to improper handling of the drug."

Reference: Gordon State College. “Microbiology and You.” Microbiology and You: An Introduction, 2019

8 0
3 years ago
People pursue _____________ projects in the market and ____________ projects in government.
Bingel [31]
A. Their own, their own
Is the answer
4 0
3 years ago
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