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Vikki [24]
3 years ago
8

Comparing perfect first degree price discrimination to perfect competition one can conclude that: (i) Total social surplus is th

e same in either case (ii) Consumer surplus is higher under perfect
A. Only (1) is true
B. Only (ii) is true
C. Both (i) and (ii) are true
D. Neither (i) nor (i) is true
Business
1 answer:
marta [7]3 years ago
5 0

Answer:

C. Both (i) and (ii) are true

Explanation:

Under perfect price discrimination, consumer surplus doesn't exist since the supplier is selling the good or service at the maximum price that each consumer is willing to pay. This situation maximizes supplier surplus.

Under perfect competition, both supplier and consumer surplus exist.

Since total social surplus = supplier surplus + consumer surplus, total surplus should be the same in both situations.

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Personal Finance: What change is taking place on this graph?
ioda
The answer is not C it is actually D. from P1 to P2 the demand curve is shifting outwards, therefore creating an increase in demand
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3 years ago
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Choose the correct statement. A. Income tax creates a deadweight loss in the markets for capital and labor. B. Income tax is a t
mixer [17]

Answer:

The correct answer is option A.

Explanation:

Income tax is a tax imposed by the government on the income earned by the individuals. This income can be from capital and labor. It creates a deadweight loss in the market for labor and capital.

Deadweight loss is the loss to economic efficiency and production caused by a tax. The imposition of a tax creates a tax wedge, this tax wedge leads to a deadweight loss. Deadweight loss due to income tax is the loss of purchasing power or reductions standard of living due to tax.  

The inefficiency or tax burden depends upon the elasticities of demand and supply. Whoever has the least elasticity will share most of the tax burden.

7 0
3 years ago
Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point below that PPF. Assuming that th
qaws [65]

Answer:

The correct answer is: a new law that interferes with economic efficiency.

Explanation:

A production possibilities frontier shows all the points where production is efficient. The resources are being completely employed. The points above the frontier are unattainable. The points below the frontier are attainable but inefficient.

If there is a movement from the frontier to a point below it. This means inefficient allocation of resources. It can happen because of some law interfering in efficient allocation of resources.

3 0
3 years ago
Suppose your firm receives a $ 3.2 million order on the last day of the year. You fill the order with $ 1.7 million worth of inv
AURORKA [14]

Answer & Explanation:

<u>a.- Revenues: </u>Increase for 3.2 millions

It will be recognize for the entire order, as it was deliveried entirely within the accounting period.

<u>b.- Earnings: </u> Increase for 1.5 millions

The earnings for the business will be the net between the revenues and expenses.

3.2 revenues - 1.7 expenses = 1.5 earnings

<u>c.- Receivables: </u> Increase for 1.8 millions

It will increase for the unpaid portion ofthe order.

<u>d.- Inventory</u> Decrease for 1.7 millions

It will decrease for the entire cost of the order, as it was within this accounting period both, revenues and the expense related to it, will be recognize.

<u>e.- Cash:</u> Increase for 1.4 millions

It will increase for the amount received from the customer. As it was no payment from the business in the transaction.

5 0
3 years ago
The government uses taxes and subsidies to guide consumption and production decisions.
aleksandrvk [35]

Answer: True

Explanation:

Tax is the amount of money that's paid by an individual or firm to the government. Subsidies are the funds or other forms of assistance that's given by the government to firms in order to help them increase their production and lower the prices of goods.

Fir example, if the government wants to decrease consumption in the economy, the government can increase tax. On the other hand, the government can increase consumption by reducing tax as people will have money to spend and also more money for production purpose.

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3 years ago
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