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frez [133]
2 years ago
9

Suppose that Michelle buys a cappuccino from Paul's Cafe and Bakery for $4.75. Michelle was willing to pay up to $6.75 for the c

appuccino and Paul's Cafe and Bakery was willing to accept S1.25 for the cappuccino. Based on this information, answer the questions below.
Michelle's consumer surplus is equal to: _______
Paul's Bakery's producer surplus is equal to:__________
Business
1 answer:
miv72 [106K]2 years ago
7 0

Answer:

$2

$3.50

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay – price of the good

$6.75 - $4.75 = $2

Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product

Producer surplus = price – least price the seller is willing to accept

$4.75 - $1.25 = $3.5

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3 years ago
One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $500 per
jekas [21]

Answer: Number of months = 66.87 months

Explanation:

Given that,

Monthly Payment = $500

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Current\ balance = Monthly\ payment\times(\frac{1-present\ value\ factor}{r})

Current\ balance = Monthly\ payment\times(\frac{1-\frac{1}{(1+r)^{t}} }{r})

18,500 = 500\times(\frac{1-\frac{1}{(1+0.0195)^{t}} }{0.0195})

\frac{18,500}{500}\times0.0195=1-\frac{1}{1.0195^{t} }

\frac{1}{1.0195^{t}}=1-0.7215

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6 0
4 years ago
What benefit does a 401(k) plan provide over an IRA?
svetoff [14.1K]
Hello,

Your brainliest answer would be:

A benefit of 401k It is Less of investment risk.

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5 0
3 years ago
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Answer:

B) Investing Activities

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Investing activities deal with cash transactions involving movement of items of Property, Plant and Equipment. These transactions include purchase costs and sale proceeds of assets.

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