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4 years ago

When producers receive a subsidy, sellers receive a:

Business

1 answer:

Vesnalui [34]4 years ago

7 0

Answer:

b. lower price than the pre-subsidy equilibrium, and buyers pay a lower one.

Explanation:

A subsidy is a governments intervention in the form of cash or tax cuts. The government offers subsidies to producers to motivate them to produce more or to lower their cost of production. As a result, there will be more products in the market or goods will be cheaper.

Equilibrium price refers to the price determined by the forces of supply and demand. It is the intersection of the demand and supply curve. It is the price that buyers are willing to pay for a certain quantity of a product; all other factors held constant.

Should a producer receive a subsidy, It will lower his cost of production. The producer's output will cost less. He can afford to offer sellers a lower price as a result of the subsidy. The traders will be able to sell the products in the market at a low price compared to a situation with no subsidy.

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In 2013, Roma was a schoolteacher and earned $40.000. But she enjoys creating cartoons, so at the beginning of 2014, Roma quit t

Neko [114]

Answer:

a. $56,400

b. 101,750

c. Economic loss of $108,150

Explanation:

Explicit Cost

The direct payments made to other for different purposes s explicit cost. Such as wages, rent etc.

For Roma Explicit costs are

Computer $55,000

Printer lease payment $150

Paper, utilities, & postage $1,250

Total Explicit Cost $56,400

Implicit Cost

Any opportunity cost is the implicit cost. The loss of benefit which someone faces for choosing an alternative.

For Roma Explicit costs are

School Teacher Salary $40.000.

Building rent $55,000

Bank Interest (5% 55,000) $2,750

Computer offer $4,000

Total Implicit cost $101750

Economic Profit

Economic Profit is the net of Revenue / Income less Implicit and Explicit costs associated with the revenue / Income.

Economic Profit / loss = Total Revenues - (Explicit Costs + Implicit Costs)

Economic Profit / loss = $50,000 - ($56,400 + 101,750)

Economic Loss = $108,150

3 0

3 years ago

pre-writing is important for all of the following reasons except: a. it is where the ideas are generated. b. it gets ideas down

evablogger [386]

Answer: C it forces the writer to be specific early in the process

Explanation:

just did it

3 0

3 years ago

Read 2 more answers

The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this

Alborosie

Answer:

Nominal variable - Price of a donut is $3.00 in 2008

Real variable- Price of a magazine is 3 donuts in 2008.

Explanation:

In 2008 the price of a magazine was $9.00. While the price of a donut was $3.00. Deborah's income was $27.00 per hour.

Nominal variable's are those which are expressed in terms of money. While, real variables are those variables which are expressed in terms of other goods or services.

The nominal variables will include:

a. The price of a donut is $3.00 in 2008.

The other two options are not nominal variables as they are expressed in terms of the other variable.

The following variables give us the real value of a variable:

b. The price of a magazine is 3 donuts in 2008.

Deborah's wage and price of a magazine are both nominal variables. They are not expressed in terms of any other variable.

In 2013, Deborah's wage is $54.00. The price of a magazine is $18.00 and price of a donut is $6.00.

Relative price is the price price of a good expressed in terms of the other good. The price of magazine in 2013 is $18.00. While, price of donut is $6.00.

$Relative price = \frac{Price of a magazine}{Price of a donut} \\ = \frac{18}{6}\\ = 3$

Thus, in 2013, the relative price of a magazine is 3 donuts.

As can be seen that from 2008 - 2013, the wage doubles. But at the same time the price of both magazine and donuts also doubles. This can be seen from the relative purchasing power of income. So, between 2008-2013 the nominal value of wage increased and the real value of her wage remained the same.

Monetary neutrality is the proposition that a change in the money supply affects nominal variables and does not affect real variables.

8 0

3 years ago

For a representative farm before the study, the economic loss is equal to

mario62 [17]

Answer:

B. the difference in price and long-run average cost multiplied by the quantity produced.

Note, The complete exercise was found due to a online research.

Explanation:

Take a look to the image attached. Will help you to understand the exercise.

5 0

3 years ago

Dominique, an executive chef in a large hotel, recently attended a training conference sponsored by several top professionals in

iris [78.8K]

Dominique's hotel is a "learning" organization.

A learning organization refers to an organization which is skilled at making, getting, and exchanging information, and at changing its conduct to reflect new learning and bits of knowledge.

In business management, a learning organization is an organization that encourages the learning of its individuals and constantly changes itself.

8 0

4 years ago