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Paha777 [63]
2 years ago
5

Mister Jones was selling his house. The asking price was $220,000, and Jones decided he would take no less than $200,000. After

some negotiation, Mister Smith purchased the house for $205,000. Smith's consumer surplus is
A) $5,000.
B) $15,000.
C) $20,000.
D) not able to be calculated from the information given.
Business
1 answer:
user100 [1]2 years ago
5 0

Answer:

D) not able to be calculated from the information given.

Explanation:

Consumer surplus is the difference between willingness to pay of a consumer and the price actually paid for a good or service.

The price paid by Smith is $205,000 but there's no information on the willingness to pay of Smith. Therefore, the consumer surplus can't be calculated.

I hope my answer helps you.

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Arded
MArishka [77]

The total amount of the costs listed above that are NOT direct costs of the Brentwood Stores equals to $157,000.

<h3>What are direct cost?</h3>

This refers to the price that can be directly tied to the production of specific goods or services.

The non- direct costs of the Brentwood Store includes:

  • Corporate legal office salaries
  • Corporate headquarters building lease
  • Central warehouse lease cost

Hence, the Costs that are not direct costs of the Brentwood Store = Corporate legal office salaries + Corporate headquarters building lease + Central warehouse lease cost

= $68,000 + $86,000 + $3,000

= $157,000

Therefore, the total amount of the costs listed above that are NOT direct costs of the Brentwood Stores equals to $157,000.

Read more about direct costs

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6 0
1 year ago
Consider a 2.75 percent TIPS with an issue CPI reference of 184.2. At the beginning of this year, the CPI was 195.4 and was at 2
Vikki [24]

Answer:

The capital gain of the TIPS in dollars is $27.69

Explanation:

Given

CPI = 200.5 (Beginning of the Year)

CPI = 195.4 (End of the year)

% = 2.75

CPI Reference = 184.2

CPI Reference of 184.2 = $1,000 rate

Capital Gain is calculated by the difference in value at the end of the year value and at the beginning of the year.

End of the year value = 200.5/184.2 * ($1000)

End of the year value = $1088.49

Beginning of the year value =

= 195.4/184.2 * ($1,000)

Beginning of the year value = $1060.80

Capital Gain =$1,088.49 - $1,060.80

Capital Gain = $27.69

3 0
2 years ago
Companies choose to Vertically Integrate for all of the following reasons, except____________.a. The company can perform the pro
QveST [7]

Answer:

The correct answer is letter "D": The company desires to enter new markets.

Explanation:

Vertical integration happens when a corporation buys other companies in the supply chain and manages them. There are two types of vertical integration: <em>backward </em>and <em>forward</em>. In backward vertical integration a corporation, like a manufacturer, owns companies that supply inputs to the manufacturing process for businesses.  

In forward vertical integration, a business owns another company in the supply chain to get closer to the end customer.

Thus, <em>vertical integration is not a technique companies use to enter new markets.</em>

8 0
3 years ago
Good cash management is an essential job of the financial manager. You own a small auto sales business called King Kars. You sto
nikdorinn [45]

Answer:

Explanation:

The answer to the above question is given in the attached document.

4 0
2 years ago
Read 2 more answers
During the Reagan administration, the Laffer curve was used to argue that: a. lower income tax rates could increase tax revenues
solniwko [45]

Answer:

A) lower income tax rates could increase tax revenues.

Explanation:

The laffer curve is a theoretical model which argues that there a tax rate that theoretically produces the most revenue for the government. Said tax rate is between 0% and 100%.

President Reagan used this model to argue that a lower tax rate would actually increase government revenue. The logic behind this claim was that lower tax rates increases both public and private saving, which in turn increases investment, resulting in more economic growth, and more taxable income.

The validity of these claims is dispute and is subject to debate among economists.

6 0
3 years ago
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