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valkas [14]
3 years ago
13

Consider the market for socks. The current price of a pair of plain white socks is $5.00. Two consumers, Jeff and Samir, are wil

ling to pay $7.25 and $9.00, respectively, for a pair of plain white socks. Two sock manufacturers are willing to sell plain white socks for as little as $3.00 and $3.15 per pair. What is the total producer AND consumer surplus (i.e., social welfare) in this market
Business
1 answer:
mr_godi [17]3 years ago
4 0

Answer:

$10.10

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the product.

Consumer surplus = willingness to pay of a consumer - price of the good

Producer surplus is the difference between the price of the product and the least price the producer is willing to sell his product

Producer surplus = price of the product - least price the producer is willing to sell his product

Consumer surplus

Jeff :  $7.25 - $5 = $2.25

Samir: $9 - $5 = $4

Total consumer surplus = $2.25 + $4 = $6.25

Producer surplus

Ist manufacturer = $5 - $3 = $2

2nd manufacturer = $5 - $3.15 = $1.85

Total producer surplus = $2 + $1.85 = $3.85

Total social welfare = $3.85 + $6.25 = $10.10

I hope my answer helps you

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C. to invest in stocks and make business decisions

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2 years ago
To prepare for a trial between SmartPhones, Inc., and TechApps Company, TechApps' attorney places SmartPhones' chief executive o
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Answer:

A deposition

Explanation:

Deposition is the term under the law of the US (United States), which is defined as it involve the taking of sworn, oral testimony in the out of court, to witness that it might reduce to a transcript which is written for the later use in the court or for the motive or the purpose of the discovery.

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3 years ago
Axl will be borrowing $300,000 today to buy a house, and he will pay it back with 20 yearly payments starting one year from toda
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Answer:

$28,317.88.

Explanation:

The annual payment, PMT can be determined using a financial calculator as follows :

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4 0
3 years ago
The 4,000 accounts receivable of Miller Company have a total book value of $150,000. A CPA has selected and audited a sample of
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Answer:

c. $154,000.

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A = \$150,000+\$1*4,000\\A=\$154,000

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Imagine having shoes that monitor your heart rate and can alert you about potential health issues. These "smart" shoes are real; you don't need to imagine them.

Over the next five years, the Internet of Things will bring about amazing potential. The Internet of Things (IoT) business still has a long way to go in terms of overall security, even while smart things are just that. "Insecurity by design" refers to how many IoT devices released today were developed with minimal regard for privacy and security safeguards.

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