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Nezavi [6.7K]
3 years ago
14

Social surplus is maximized when all buyers with the reservations values ___________ than the market price are actually making p

urchases and all sellers with the reservation values ___________ than the market price are selling the products.
Business
1 answer:
nikklg [1K]3 years ago
5 0

Answer:

highest-value; lowest-cost

Explanation:

Social surplus  can be define as the rate, amount of value or utility(which are welfare)  a society has gotten from goods and services consumption. It is not not like money or resource.

it is also referred  as economic surplus. it is  the summation of the sum of consumer surplus and producer surplus. The economic surplus is referred to as welfare package in full

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A music school has budgeted to purchase three musical instruments. they plan to purchase a piano costing $3,000, a guitar costin
daser333 [38]

Assuming the costs are normally distributed, then Z = (X-mu)/sigma

For piano Z= (3000-4000)/2500 = -0.4

For guitar Z= (550-500)/200 = 0.25

For drums set Z= (600-700)/100 = -1

Drums set < Piano < Guitar

Drums cost is lowest when compared to the instruments of same type .

Guitar cost is highest when compared to the instruments of same type.

8 0
3 years ago
When the required return is equal to the coupon rate, the bond value is▼equal togreater thanless thanthe par value. In contrast
-BARSIC- [3]

1) Answer: When the required return is equal to the coupon rate, the bond value is equal to the par value,

2) if the required return is less than the coupon rate the bond will sell at a premium.

Explanation:

1) The reason for this that the required return is the market or investors required rate of return for a particular bond, when the required rate and coupon rate are equal it means that the investor is getting the return he wants in coupon payments, therefore the investor will be willing to buy the bond on par value, as he is getting his required return in the form of coupon payments.

2) When the required return is less than the coupon rate the investor is getting more in coupons than he required from the bond so the bonds price will be higher than par so that the return from the coupons become equal to the required rate of return. Thats why when a bonds required return is less than the coupon it sells on a premium.

3 0
3 years ago
For each of the following corporate formations, (1) write the amount of gain or loss that will be recognized by the shareholders
Maslowich

Answer:

Back Stop, Inc.

1. The amount of gain or loss that will be recognized by the company:

a. $30,000 gain

b. $80,000 loss

2. The corporation's basis in the property after the transfer:

a. $150,000

b. ($80,000)

Explanation:

1) Data and Calculations:

a. Building $150,000 Capital, Kelly $120,000 Unrealized gain $30,000

b. Unrealized loss $80,000 Capital, Kelly $80,000

2) The building contributed by Kelly is worth $150,000 for the corporation.  However, the contribution by John is worth nothing in real terms.  Instead, an unrealized loss is being suffered by the corporation.

3 0
2 years ago
In a ________ computing model, companies use their own infrastructure for essential computing tasks and adopt public cloud compu
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Explanation:

3 0
3 years ago
Which of the following is true of grapevine communication? a. It has a reputation for being speedy but inaccurate. b. It passes
Tomtit [17]

Answer:

The correct answer is a. It has a reputation for being speedy but inaccurate.

Explanation:

Taking into account the nature of this type of information (Informal), the idea that the greatest advantage is speed is reinforced because it is not necessary to comply with a series of regular channels such as authorizations or document printing to transmit the message. . However, within informal communication, a series of interpretations is usually generated that can generate a wrong handling depending on the person who receives it, so it is not advisable to do this unless the importance of the message is low and it can be communicated assertive way.

7 0
3 years ago
Read 2 more answers
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