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3 years ago

A monopolist that practices perfect price discrimination has the same deadweight loss triangle as the single-price monopolist.

Business

1 answer:

beks73 [17]3 years ago

7 0

Answer:

The correct answer is the option B: False.

Explanation:

To begin with, the price discrimination strategy refers to a technique used by the companies in order to charge different prices to the different consumers regarding the fact of how much would they be able to pay for the product. When it comes to monopolies, a perfect price discrimination strategy would try as best as possible to capture the majority of the zone known as the "consumer surplus". And that is why that a company with a perfect price discrimination would face a small deadweight loss area due to the fact that with that strategy of price the monopolist will absorve as much as possible of that area becuase the triangle is half consumer surplus and half producer surplus.

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The following information is available for Kinsner Corporation: Total fixed costs $313,500 Variable costs per unit $99 Selling p

Zanzabum

Answer:

The number of units that must be sold is A. 6,540 units

Explanation:

The number of units must be sold to meet the target profit figure are calculated by using following formula:

The number of units must be sold = (Total fixed cost + Targeted profit) / Contribution margin per unit.

Contribution margin per unit = Sales price per unit – Variable cost per unit = $154 - $99 = $55

The number of units must be sold = ($313,500 + $46,200)/$55 = 6,540 units

7 0

3 years ago

4. Study Question #4 Ch 7. Why are developing nations concerned with commodity price stabilization? Check all that apply. Improv

iragen [17]

Answer:

Developing nations are concerned with commodity price stabilization because of the following reasons

There are high price elasticity of supply and demand for many commodities
Developing economies are often highly dependent on the export of just one or a few commodities.

Explanation:

In recent decades there has been growing concern about the sharp fluctuations of primary product prices, the effects of those fluctuations on particular groups of producers and particular countries, and the measures which might be taken to reduce or offset the fluctuations.

Producing countries have been dominated by proposals for stabilizing world prices of commodities, in particular via the establishment of a “Common Fund” within the framework of UNCTAD's Integrated Program for Commodities.

However, developing nations are concerned with commodity price stabilization because of the two reasons provided above which could result in inflation and deflation.

7 0

3 years ago

A first step toward understanding organizational markets is recognizing the differences between industrial, reseller, and govern

zaharov [31]

Answer: True

Explanation:

To understand organizational markets, one must first realize that there are three main types of them: Industrial, reseller and government.

Industrial markets enable businesses to transact with each other. They trade raw materials and other goods to each other and process them to finished goods.

The reseller market does not involve any processing but rather firms buying from one and selling to another as middlemen.

The last market is the Government market. Any arm of government that purchases goods and services fall here including at local, state or federal level.

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3 years ago

On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value, 77,000 shares authori

Vikki [24]

Answer:

See the explanation below:

Explanation:

1. Prepare journal entries to record the following transactions for Sherman Systems

a. Purchased 5,500 shares of its own common stock at $30 per share on October 11.

Details Dr ($) Cr ($) 

Treasury Stock (5,500 × 30) 165,000

Cash 165,000

To record the repurchase of own common stock

b. Sold 1,125 treasury shares on November 1 for $36 cash per share.

Details Dr ($) Cr ($)

Cash (1,125 × 36) 40,500

Treasury Stock (1,125 × 30) 33,750

Paid-in Capital from Sale of Treasury Stock 6,750

To record the sale of treasury stock.

c. Sold all remaining treasury shares on November 25 for $25 cash per share.

Details Dr ($) Cr ($) 

Cash (4,375 × 25) 109,375

Paid-in Capital from Sale of Treasury Stock 6,750

Retained Earnings 15,125

Treasury Stock 99,000 (4,375 × 30) 131,250

To record the sale of the remaining treasury shares

Kindly note that there is a balance of $6,750 in the Treasury Stock Paid-in Capital account. Since it is utilized, the remaining deficit will show in Retained Earnings.

2. Prepare the stockholders' equity section after the October 11 treasury stock purchase.

Details $

77,000 issued authorized common stock–$10 par value 770,000

Paid-in capital in excess of par value, common stock 241,000

Retained earnings 904,000

Treasury stock (165,000)

Total stockholders’ equity 1,750,000

3 0

4 years ago

A deductible of $500 requires ( select the correct answer )

kenny6666 [7]

Answer:

ɴᴏ ᴘɪᴄ sᴏʀʀʏ :(( ʙʏᴇ :)))

5 0

2 years ago

Read 2 more answers