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olchik [2.2K]
2 years ago
14

Suppose the most you would be willing to pay to have a freshly washed car before going out on a date is $4.00. The smallest amou

nt for which you would be willing to wash someone else's car is $2.50. You are going out this evening and your car is dirty. How much economic surplus would you receive from washing it
Business
2 answers:
Art [367]2 years ago
8 0

Answer: $1.50

Explanation:

The economic surplus is the benefit that a person receives over what they view as the cost of the transaction.

Here you believe the car wash is worth $4.00 yet you believe the cost would be $2.50 if you did it yourself.

The surplus you are gaining therefore is;

= 4 - 2.50

= $1.50

o-na [289]2 years ago
4 0

Answer:

Economic surplus is $1.5

Explanation:

Economic surplus considers two components. The consumer surplus and the producer surplus.

Consumer surplus is difference between what a consumer is willing to pay and the market price of a good.

Producer surplus is the difference between the market price of a good and the minimum amount seller is willing to recieve for the product.

In this instance economic surplus combines the benefits that a producer and supplier gets from the product.

Consumer surplus is $4 and the producer surplus is $2.50

So if one decides to wash the car the comic surplus will be 4 - 2.50 = $1.5

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ale4655 [162]

Answer:

1. Future Value = 30,000

Rate = 0.12

Annual period, NPER = 5

Present value, PV = PV(0.12, 5,0,-30,000 ,0)

Present value, PV = $17,022.81

2. Future value = 8,000

Quarterly rate = 16%/4 = 4%

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Present value, PV = PV (4% , 18, 0, -8,000 , 0)

Present value, PV = $3,949.02

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5 0
3 years ago
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Answer:

e. None of the above

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The taxable asset purchases allows the individual to increase or step up the tax basis of acquired assets so as to reflect the price of the purchases made.

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Answer:

Income after tax = $1666

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LIFO (Last-In-First-Out) is a method of inventory valuation where the goods that are received last are used first. In other words, the latest stock is used first. This is common for bulky inventory, stacked one on top of another.

In order to obtain the after-tax income, both the gross profit and income before tax are required. To obtain gross profit, we require the cost of goods sold information. The inventory information is as follows:

Feb 1 : Purchases : 102 units x $42 = $4284

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Income after tax = $2380 - ($2380 x 30%) = $1666

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