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sergey [27]
2 years ago
6

A price ceiling set below the equilibrium price in a perfectly competitive market A. always reduces producer surplus and increas

es consumer surplus. B. always increases producer surplus and decreases consumer surplus. C. always reduces producer surplus and may or may not increase consumer surplus. D. always increases producer surplus and may or may not increase consumer surplus
Business
1 answer:
anygoal [31]2 years ago
7 0

Answer:

A

Explanation:

Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.

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

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

Because price is below equilibrium price, consumer surplus would increase and producer surplus would reduce

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The statement “Expenses, such as depreciation on buildings are also known as variable expenses.”, is false, due to the fact that depreciation is a fixed cost since throughout its useful life as an asset, it reoccurs in the same amount per period, and thus, depreciation cannot be considered a variable cost. Nevertheless, as with all things, there is an exception. The depreciation will be sustained in a pattern that is more consistent with a variable expense, only if a business recruits a usage-based depreciation methodology.

To add, the corporate expense that alters with the company’s production output is called the variable cost.

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3 years ago
Guidance and discipline strategies in emergency child care setting should ?
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2 years ago
Luke Corporation issued at a premium of $5,000 a $100,000 bond issue convertible into 2,000 shares of common stock (par value $2
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Answer:

Face Value of Bonds = $100000

Unamortized Premium = $2000

Conversion of Equity Shares = 2000 * $20 = $40,000

Paid in Capital in Excess of Par = $100000 + $2000 - $40000 = $62000

            Journal Entries

Account Title & Explanation     Debit     Credit

Bond Payable Account            $100000

Unamortized Premium             $2000

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3 years ago
You've started using the sq3r method of learning. after surveying a reading assignment, you go to the next step, which does this
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3 years ago
A firm offers terms of 1.8/10, net 30. a. What effective annual interest rate does the firm earn when a customer does not take t
LUCKY_DIMON [66]

Answer:

a) 39.304%

b) 67.91%

c) 14.17%

Explanation:

a. Given"

Offer terms = 1.8/10

Now,

The Effective annual interest rate is given as:

= (\frac{\textup{100}}{\textup{100 - Discount rate}})^{(\frac{365}{total period - discount period})}-1

on substituting the respective values, we get

= (\frac{\textup{100}}{\textup{100 - 1.8}})^{\frac{365}{(30 - 10)}}-1

= 0.39304

or

= 39.304%

similarly,

b. for 2.8/10 net 30

Effective annual interest rate = (\frac{\textup{100}}{\textup{100 - 2.8}})^{(\frac{365}{(30 - 10)})}-1

= 0.6791

or

= 67.91%

c. for 1.8/10 net 60

Effective annual interest rate = (\frac{\textup{100}}{\textup{100 - 1.8}})^{(\frac{365}{(60 - 10)})}-1

= 0.1417

or

= 14.17%

8 0
3 years ago
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