Answer: loss to buyers from paying higher prices plus the benefit to sellers from receiving lower prices.
Explanation:
Total surplus measures the maximum amount a buyer is willing to pay to ensure a smooth market flow plus the amount the seller is least able to sell a product as long as it's not below the cost price of that product.
Total surplus ensure the efficient running of a market and a better society overall.
The correct answer should be an increase in quantity supplied and an increase in price. Since people want it, it will be provided more. It's supply and demand, the more you have a need for something the more will be produced, and vice versa. Of course, the owners will use the situation to earn a lot because people will want to buy it so the price will probably go up too.
Answer:
WACC = 0.06192 or 6.192%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure which can comprise of one or all of the following components namely debt, preferred stock and common stock.
For a company with 2 components of capital structure, the formula for WACC is,
WACC = wD * rD * (1 - tax rate) + wE * rE
Where,
- wD and wE is the weight of debt and equity
- rD and rE is the cost of debt and equity
- we use the after tax cost of debt so we multiply the rD by (1 - tax rate)
Total weight of capital structure = 1 + 4 = 5
Weightage of debt = 1/5
Weightage of equity = 4/5
WACC = 1/5 * 0.04 * (1 - 0.26) + 4/5 * 0.07
WACC = 0.06192 or 6.192%
If you work after high school, you will be giving up your college education as well as an extra $400,000 over your lifetime. If you go to college, you will miss the work experience after high school, as well as extra money in your pocket early on.