What is discretionary spending within a budget?

Which of the following are necessary conditions for successful price discrimination?

mixer [17]

Answer:

d. at least two different markets with different price elasticities of demand

Explanation:

The theory of microeconomics about price differentiation is based on the concept of elasticity of demand. Price elasticity of demand is a measure of the sensitivity of demand for a good or service to changes in the price of that product. We say that the price elasticity of demand is elastic when a percentage change in the price of this good has major impacts on demand. On the contrary, we say that the price elasticity of demand is inelastic when variations in the price of goods have little or no influence on demand.

For price discrimination to take place, the offeror must be able to sell the same product at different prices to at least two different groups. This will depend on the price elasticity of consumer demand for the good in each of the markets. Thus, if one group is less elastic than the other, the offeror will be able to sell the goods at different prices.

An example: air market. Consumers are often more price sensitive when traveling for tourism than for business. Thus, a higher price may be charged to executives. which has lower price elasticity of demand than tourists.

6 0

3 years ago

Explicit and Implicit Costs) Amos McCoy is currently raising corn on his 100-acre farm and earning an accounting profit of $100

loris [4]

Answer:

No

Amos McCoy is earning an economic loss. His implicit cost ($200) is greater than his accounting profit ($100)

Explanation:

Economic profit it accounting profit less implicit cost.

Accounting profit is total revenue less total cost or explicit cost.

Implicit costs are opportunity costs.

Economic profit = $100 - $200 = $-100

Amos McCoy Is making an economic loss of $-100

I hope my answer helps you.

3 0

3 years ago

Adelene, who lives in a winter resort area, rented her personal residence for 14 days while she was visiting Brussels. Rent inco

frez [133]

Answer:

a) The effect the rental activity has on Adelene's AGI is $0.

b) The total rental income is less than the total expenses for the year, so the reportable rental income is $0.

Explanation:

a)

particulars amount amount

rental income $5,000

property taxes $3,800

mortgage interest $7,500

utilities $3,700

insurance $2,500

repairs $2,100

depreciation $15,000

total deduction $34,600

AGI $0

Therefore, The effect the rental activity has on Adelene's AGI is $0.

b)

particulars amount

Real property taxes $3,800

mortgage interest $7,500

utilities $3,700

insurance $2,500

repairs $2,100

depreciation $15,000

total expenses $34,600

Therefore, The total rental income is less than the total expenses for the year, so the reportable rental income is $0.

7 0

3 years ago

A market structure with a large number of sellers who make differentiated products is called _____.

Lubov Fominskaja [6]

The correct answer for the question that is being presented above is this one: "Monopolistic competition." A market structure with a large number of sellers who make differentiated products is called monopolistic competition. Monopolistic Competition refers to a type of imperfect competition<span> such that many producers sell products that are differentiated from one another.</span>

4 0

2 years ago

The following information pertains to Blossom Company.

Dimas [21]

Answer:

A. Adjusted cash balance per bank $13,545

Adjusted cash balance per books $13,545

B. July 31

Dr Cash $2,520

Cr Accounts Receivable $2,520

July 31

Dr Bank service charge $63

Cr Cash $63

Explanation:

A. Preparation of a bank reconciliation at July 31, 2010

PHAROAH COMPANY

Bank Reconciliation

31-Jul-10

Cash Balance per bank statement $10,962

Add: Deposit in transit $4,473

$15,435

Less: Outstanding checks $1,890

Adjusted cash balance per bank $13,545

Cash balance per books $11,088

Add: Electronic fund transfer received $2,520

$13,608

less; Bank service charge $63

Adjusted cash balance per books $13,545

B. Preparation of the adjusting entries at July 31 on the books of Sunland Company.

July 31

Dr Cash $2,520

Cr Accounts Receivable $2,520

(To record electronic fund transfer received by bank)

July 31

Dr Bank service charge $63

Cr Cash $63

(To record bank service charges )

4 0

3 years ago