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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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Hope College is planning for the next biennium. School administrators know that the enrollment is on the decline, but still need
Alekssandra [29.7K]

They can accomplish this through early retirement.

<h3><u>Explanation:</u></h3>

Early retirement is a way that we use to stop or discontinue something. Most of the aged person tends to choose early retirement for the purpose of achieving the benefits form the organisation to the most possible level. This decision can be taken when we know that the organisation will be closed in the near future and continuing work will not benefit us.

When we decide for the early retirement the befits that we attain from that will be more than  the benefit that are obtained in continuing work. In the given example, Hope college has a plan for next biennium. But, the enrollments are reduced in number and they want to reduce the payroll slowly. Thus this can be accomplished with the help of early retirement.

7 0
2 years ago
If a stock portfolio is well diversified, then the portfolio varianceA. will equal the variance of the most volatile stock in th
mihalych1998 [28]

Answer: The correct answer is "B. may be less than the variance of the least risky stock in the portfolio.".

Explanation: If a stock portfolio is well diversified, then the portfolio variance may be less than the variance of the least risky stock in the portfolio.

This occurs because diversifying the risk results in a lower risk in the total portfolio.

8 0
3 years ago
Marmol Corporation uses the allowance method for bad debts. During year 1, Marmol charged $30,000 to bad debt expense, and wrote
4vir4ik [10]

Answer: Option (d)

Explanation:

Under this case the write off will be as follow:

                                                                      Debit         Credit

Allowance for doubtful accounts                25,200  

Accounts receivables                                                     25,200

Here, in this case the Allowance for the doubtful accounts and Accounts receivables are further decreased as the outcome of the transaction made. Thus, there will be no further effect on working capital. Therefore the $30,000 that is bad debt would then be stated as the credit to allowance account. This will then decrease the working capital by $30,000.

4 0
3 years ago
While the role of the state in a command economy is to be __________, in a market economy the state's role is to be __________?
MatroZZZ [7]
<span>While the role of the state in a command economy is to be Dominant, in a market economy the state's role is to be Passive


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3 0
3 years ago
The next dividend payment by GMR Enterprises will be $1.82 per share with future increases of 2.8 percent annually. The stock cu
In-s [12.5K]

Answer:

4.70%

Explanation:

According to the given situation, the computation of dividend yield is shown below:-

Dividend Yield = Expected dividend ÷ Current price

where,

expected dividend is $1.82

And, the current price is $38.70

Now place the values to the above formula

So, the dividend yield is

= $1.82 ÷ $38.70

= 0.0470

or

= 4.70%

Therefore for computing the dividend yield we simply applied the above formula.

4 0
3 years ago
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