I would assume false. If the consumers are still paying $4 per unit, a surplus is not created. It relates to the price per unit rather than the number of units.
Answer:
This question is incomplete, the options are missing. The options are the following:
a) It is determined by Gary because he has a product that many people want.
b) The price is determined by combining the actions of all buyers and all sellers together.
c) The price he will receive is primarily determined by a few buyers at the local grain bin.
d) The government sets the price of the corn to level the playing field for everyone.
e) The price will be approximately 25 percent higher than what other farmers are selling the same corn for because Gary is an astute businessperson.
And the correct answer is the option B: The price is determined by combining the actions of all buyers and all sellers together.
Explanation:
To begin with, the structure of market known as <em>''perfect competition"</em> is considered to be the one in where the price of the product is determined by the interaction between all the buyers and sellers of the market due to the fact that there is huge amount of them and the product that is being sell is homogenous so that means that there is no difference between buying to one or other producer. That is why that the sellers and buyers are known as "price-takers".
The answers are A E and D
Answer:
The concept of economic profit ....... <u>alternative</u> two options.
If economic profit is positive .......... <u>Current </u>option.
If economic profit is negative............ <u>Other </u> option
Explanation:
Economic Profit is the excess of revenue associated with an option, over its costs (explicit external & implicit opportunity costs).
Example : Revenue - Direct explicit cost of production - opportunity cost (like interest on money invested, salary of job left foregone).
The concept is used to make decision between two<u> alternative</u> options. Given, zero economic profits imply indifference.
Positive Economic Profit implies - one should choose<u> Current </u>option, as it will make <u>Better off </u>, having more benefit than other option
Negative Economic Profit implies - one should choose <u>Other </u> option, as it wil make better off, having more benefit than the former considered option.
Answer:
D. Tender offer
Explanation:
A. Rights offer
B. Secondary issue
C. Targeted repurchase
D. Tender offer
E. Private issue
We are informed about Joseph Turner and Sons who has 125,000 shares of stock outstanding. The firm has extra cash so it announced this morning that it is willing to repurchase 25,000 of its shares. In this case the type of offer is the firm making is tender offer. Tender offer can be regarded as a kind of public takeover bid to all shareholders, so that they can sell out their shares at a specific price during a particular time.
It is usually made public, and this time the investors do give out higher price per share compare to the stock price of the company, which give room to shareholders in selling their own share.