Multiple Choice

Identify whether each statement in the following table best illustrates the concept of consumers’ surplus, producers’ surplus, o

Blizzard [7]

Answer:

1. Neither ; 2. Consumer Surplus ; 3. Producer Surplus

Explanation:

Consumer Surplus is the difference between a good's price paid by consumer, & maximum price the consumer is willing to pay for the good.

Producer Surplus is the difference between a good's price received by a seller, & minimum price at which the seller is willing to sell the good.

1. Willing to pay $209 for watch, buyer willing to sell at $196, no trade as price ceiling at $190 : It illustrates neither concept as transaction has not actually occurred, so no price established.

2. Willing to pay $39 for sweater, purchased it for $32 : It illustrates 'Consumer Surplus' case = $7 , as it shows difference between maximum willingness to pay by buyer ($39) & the actual buy price ($32)

3. Willing to sell laptop at $190, sold it at $199 : It illustrates 'Producer Surplus' case = $9 , as it shows difference between minimum willingness to sell price ($190) & actual sale price ($199)

5 0

4 years ago

In an effort to provide some structure to the value perspective, David Garvin of the Harvard Business School identified eight di

mel-nik [20]

Answer:

the product or service was made according to the specifications

Explanation:

Professor David Garvin of Harvard University proposes 8 components or dimensions of quality in order to make the concept of quality of a product or service more operational and favor the understanding of how Quality Management can be applied in companies, both manufacturing and services.

1. Performance

2. Features

3. reliability

4. Conformity to the design

5. Durability

6. Quality in service

7. Aesthetics

6 0

3 years ago

In 1990, Ivanhoe Company completed the construction of a building at a cost of $800,000 and first occupied it in January 1991. I

tester [92]

Answer:

(a) 19,400 dep expense for building 1991-2000 period

(b) 25,800 dep expense for building 2001-2018 period

(c) no entry required as this additional information arises during this year and wasn't available in the previous year. It wasn't a lack of sufficient information or accoutning mistake that produced.

Explanation:

(a)

cost - salvage value / useful life = depreication per year

(800,000 - 24,000) / 40 = depreciation expense per year

dep expense 19,400

(b)

building book value:

cost - accumulated depreciation

800,000 - 19,400 x 10 years = 606,000

addtional construction 200,000

total value 806,000

salvage value: 24,000 + 8,000= 38,000

useful life 30 years

deprecation expense betwene 2001 and 2018 related to building

(806,000 - 32,000 ) / 30 years = 25,800

7 0

4 years ago

State one risk and one benefit of being a stockholder.

Airida [17]

Answer:

risk : Stockholders aren't guaranteed a return on there investment.

benefit: you can make money on the stock market sometimes at huge rates of growth

5 0

3 years ago

There are three forms of the efficient market theory. Tests that have found there are no patterns in share price changes provide

svlad2 [7]

Answer:

Weak; Semistrong; Strong.

4 0

3 years ago