All categories

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.

You might be interested in

Using the data set below, what would be the forecast for period 5 using the exponential smoothing method? Assume the forecast fo

elena55 [62]

Answer:

The answer is C: 14300

Note: The actual answer is 14296, and the closest to that was option C.

Explanation:

Formula to calculate forecast using Exponential smoothing:

$F_{t} = F_{t-1} + \alpha ( A_{t-1} - F_{t-1} )$

Where,

$F_{t}$ = New Forecast
$F_{t-1}$ = Previous period's forecast.
$\alpha$ = Smoothing Constant
$A_{t-1}$ = Previous period's Actual Demand.

Calculating the forecast for period 5:

Data:

$F_{5} = ?$
$F_{t-1} = 14000$
$\alpha = 0.4$
$A_{t-1} = 14750$

Putting values in the formula:

$F_{5} =$ $14000 + 0.4(14750-14000)$

$F_{5} = 14000 + 0.4 (740)$

$F_{5} = 14000 + 296$

$F_{5} = 14296$

4 0

3 years ago

As it relates to inventory, a buyer's time expended to prepare the purchase order for more material is considered a(n) ____ cost

OLga [1]

Answer:

"Ordering" is the correct solution.

Explanation:

Ordering expenses are incurred in purchasing a new shipment of manufactured goods. This would include expenditures for the attempting to place of a purchase agreement, cost savings for the evaluation including its batches expected to receive, ends up costing for documentary evidence, etc.
The cost of ordering correlated negatively with either the cost of transport. This appears to mean because the much more purchases a business location including its providers, the significantly higher the ordering costs will indeed be.

3 0

2 years ago

Your firm has net income of $245 on total sales of $1,080. Costs are $610 and depreciation is $120. The tax rate is 30 percent.

RSB [31]

Answer:

the operating cash flow is $365

Explanation:

the computation of the operating cash flow is shown below:

operating cash flow is

= Net income + depreciation expense

= $245 + $120

= $365

hence, the operating cash flow is $365

We simply added the net income and the depreciation expense to determine the operating cash flow

3 0

2 years ago

Marian Company reported the following items for the month of July: Sales revenue $ 473 comma 300 Cost of goods sold $ 300 comma

NARA [144]

Answer:

4.33.

Explanation:

Inventory turnover is a ratio that tells us the number of times a company sells and replaces its inventory. It is calculated by taking Cost of Goods Sold for a period and dividing it by Average Inventory [(Opening + Ending) / 2].

⇒ 300,000 / [(64,400 + 74,200) / 2] = 300,000 / 69,300 = 4.33.

It means that Marian Company sold its inventory 4.33 times during the Year.

3 0

3 years ago

Travis borrowed $10,000 four years ago at an annual interest rate of 7 percent. The loan term is six years. Since he borrowed th

likoan [24]

Answer:

The answer is A

Explanation:

The loan is an interest only loan since he is only paying the interest potion of 7%

Interest only loan is when the borrower pays only the interest for some or all the term of the loan with no changes in the borrowed amount

5 0

3 years ago