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Alexxx [7]
3 years ago
11

Below table represents buyers’ willingness to pay for a roasted chicken and consider that there is only one supplier whose cost

to produce 1 unit of the product is $2 and current price in the market is $6. Calculate total surplus in this market. (1 point)
------------------------------ Abraham----- Smith----Chuck
Willingness to pay -------- $10 -------- $7----------$5
Business
1 answer:
frez [133]3 years ago
3 0

Answer:

$13

Explanation:

total consumer surplus = ($10 - $6) + ($7 - $6) = $4 + $1 = $5

total supplier surplus = ($6 - $2) x 2 units = $4 x 2 = $8

total surplus in the market = consumer surplus + supplier surplus = $5 + $8 = $13

Since the price is higher than Chuck's willingness to pay, no transaction will occur resulting in 0 surplus.

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disa [49]
In the context of business management, the purpose of budgeting includes the following three aspects:

•A forecast of income and expenditure (and thereby profitability)

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•A means to monitor business performance
7 0
3 years ago
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A firm's WACC can be correctly used to discount the expected cash flows of a new project when that project will: Multiple Choice
Serggg [28]

Answer:

...when that project will have the same level of risk as the firm's current operations

Explanation:

Weighted average cost of capital (WACC) is the company's cost of capital based on its proportion of equity and debt used in its capital structure. It can be used as the discount rate for calculating the present value of future expected cashflows of a project if the project is determined to be of similar risk to the company's operations; meaning that the estimated beta of the project is the same as the beta of the firm.

5 0
3 years ago
You have decided to open a pet store and have engaged in a contract with Dog N' Cat Centers, Inc. You and the company have drawn
podryga [215]

Answer:

franchisor; franchisee

Explanation:

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Franchisee is small business owner who has purchased right to use existing business's trademarks and then uphold same standards as first business.

Hence, in the given case, Dog N' Cat is the <u>franchisor</u> and you are the <u>franchisee</u>.

5 0
3 years ago
A production center is available for 8 hours per day in a factory. It is comprised of several rotary parts, and the worker opera
cricket20 [7]

Answer:

75%

Explanation:

Since the production center is available for 8 hours per day in a factory, and the worker operating it is required to lubricate these rotary parts once each day.

If it takes 2 hours to remove these parts from the equipment, lubricate them, and re-assemble them and the production center is not available for production during these times;

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8 0
3 years ago
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lianna [129]

Answer:

The correct answer is option B.

Explanation:

Profit maximization refers to the situation when a firm is able to maximize the total profit that it could earn through the production of goods and services.  

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If the marginal revenue is greater than the marginal cost the firm should increase production till both are equal.  

In case, marginal revenue is less than the marginal cost the firm should stop producing more and reduce production till both are equal.

3 0
3 years ago
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