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Ivahew [28]
3 years ago
15

As a consumer you believe yourself to act rationally, optimally and self-interestedly. You like ice cream and value a pint at $7

. Usually you buy a pint each week at $4. This week however, the price jumped to $5 a pint. What would you do? a. ​buy the ice cream since the price is still below your maximum willingness to pay b. ​buy the ice cream since even at the new price it gives you a positive amount of consumer surplus c. ​not buy the ice-cream since the price is now higher d. ​both A&B
Business
1 answer:
enyata [817]3 years ago
8 0

Answer:

both A&B

Explanation:

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

A rational consumer would always purchase a good if the price of the good is below the consumer surplus.

When tue price was $4, the consumer surplus is $7-$4=$3

When the price is $5, the consumer surplus is $7-$5=$2

The consumer should still purchase the good since the consumer surplus is still postive.

I hope my answer helps you

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The B-52 is an aircraft used by the U.S. military in armed conflict. Based on this information, what kind of good is a B-52 airc
ycow [4]
B. because it is only used by the military and not the public
5 0
3 years ago
Kuong Inc. sold a commercial office building used in the corporate business for $1.5 million. Kuong purchased the building in 20
mars1129 [50]

Answer: $107,600 ordinary gain and $530,400 Section 1231 gain

Explanation:

Section 1231 property is when a business property that's either real or depreciable is held for more than one year. It should be noted that section 1231 gain which arises when the property is sold will be taxed at lower capital gains tax rate which is versus the ordinary income rate.

Therefore, Kuong should characterize the $638,000 gain recognized on sale as $107,600 ordinary gain and $530,400 Section 1231 gain.

The correct option is C.

7 0
3 years ago
ABC Steel Co. is considering buying a new machine in order to increase its production capacity using new technology. Details abo
stepan [7]

Answer:

payback period is lesser than 15 years we can say that they should buy the machine

so correct option is c. 4.8 years  

Explanation:

given data

Purchase Cost = $300,000

Savings offered = $62,500 per year

Life of machine = 15 years

to find out

Payback period

solution

first we get here Payback period that is express as

Payback period =  purchase cost ÷ savings   ...........1

put here value we get

Payback period = \frac{300000}{62500}

Payback period = 4.8 years

and here payback period is lesser than 15 years we can say that they should buy the machine

so correct option is c. 4.8 years  

7 0
3 years ago
A compound transaction was recorded as follows: debit Equipment, $5,000; debit Cash, $1500; credit Accounts Payable, $3,500. Thi
butalik [34]
The trial balance would disagree. It seems that the cash should be credited instead as the situation seems to me that the cash is being expended to pay for the equipment, and the remaining 3500 is liabilities. Therefore, the error should be corrected.
7 0
3 years ago
Which of the following are pros and/or cons of using a market system to produce and distribute health care?
irakobra [83]

Answer:

<em>options B, D</em>

Explanation:

When a market system is used to determine what healthcare products to produce and distribute <em>we expect;</em>

<em>1. that these medical devices and services from the suppliers  would be  given only to those who are willing and able to pay for them. and</em>

<em />

<em>2. Since the buyers have a say what healthcare services and products they need hospitals and doctors would at least to satisfy the tastes of buyers.</em>

<em />

3 0
4 years ago
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