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marta [7]
2 years ago
5

Donna runs an inn and charges $300 a night for a room, which equals her cost. Sam, Harry, and Bill are three potential customers

willing to pay $500, $325, and $250, respectively. When the government levies a tax on innkeepers of $50 per night of occupancy, Donna raises her price to $350. The deadweight loss of the tax is:________
a. $25
b. $50
c. $100
d. $150
Business
1 answer:
alina1380 [7]2 years ago
6 0

Answer:

a. $25

Explanation:

According to the given situation, the computation of deadweight loss of the tax is shown below:-

Deadweight Loss = 1 ÷ 2 × 1 × ($350 - $300) = 1 ÷ 2 × ($50)

Or, Deadweight Loss = 1 ÷ 2 × ($50)

Or,  Deadweight Loss = $25

Therefore the correct option is a. $25

We simply considered the above values so that the deadweight loss of the ta could come

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The primary goal of a financial manager is​ ________. A. maximizing wealth B. minimizing return C. minimizing risk D. maximizing
Pani-rosa [81]

Answer:

D. maximizing profit

Explanation:

Maximizing profit because maximizing wealth may also maximize expenses by a certain limit . Minimizing return or risk may not result in maximum profit.

Maximum profit may help the business to develop grow and have the best results. The primary objective of financial managers is to make the business and company more worthy to its owners employees etc. This is achieved by getting the maximum profits. The maximum profits in turn reward every person connected with the company.

8 0
3 years ago
Insurance protects you from associated risks, Match each scenario to the insurance
den301095 [7]

Matching each scenario to the insurance needed for protection.

  • Tyrell's son has leukemia and will need cancer  medications- Health insurance.

  • Someone broke into Maria's house and stole her flat screen TV and other values-  Homeowners insurance.

  • Don wants to make sure his family has enough money to pay off the house if he dies- Life insurance.

  • Jill broke both of her legs in a skiing accident. She will be out of work for several months while she recovers from her injuries- Disability insurance.

  • Due to careless driving, Lisa hit another car and hurt the passengers inside-  Liability insurance.

<h3>What is insurance?</h3>

Insurance can be defined as a coverage that help to cover cost or expenses in case of unforeseen or unexpected circumstances such as:

  • Accident
  • Fire
  • Theft etc.

Therefore Tyrell's son has leukemia and will need cancer  medications- Health insurance.

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8 0
2 years ago
The law of supply indicates that, other things equal, Multiple Choice producers will offer more of a product at high prices than
Alex777 [14]

The law of supply generally asserts that the producers will offer more of a product at high prices than at low prices.

<h3>What does law of supply states?</h3>

The economic law states the higher the price, the higher the quantity demanded; because the sellers get more profit when the price is higher, this encourages the producer to produce at high price.

Therefore, the Option A is correct.

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7 0
1 year ago
How does an investor get ownership interest in a company
viva [34]

I believe the answer is:  by purchasing shares of the company

By purchasing a certain amount of shares, that investor automatically became part-owner of the company. For majority of companies, every 4 months, the company would announce the amount of dividend that they will give to the share owners. The amount of dividend that the owners receive would be according to the percentage of shares that they own.

7 0
3 years ago
Read 2 more answers
John borrowed $6,000,000 for a period of 15 years.is interest rate is 8%. How much interest will John pay in all?
Reil [10]

Based on the information given the amount of interest that John pay in all is his $7,200,000.

<h3>Interest:</h3>

Using this formula

Interest=Amount borrowed×Number of years×Interest rate

Where:

Amount borrowed=$6,000,000

Number of years=15 years

Interest rate=8%

Let plug in the formula

Interest=$6,000,000×15×8%

Interest=$7,200,000

Inconclusion the amount of interest that John pay in all is his $7,200,000.

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7 0
2 years ago
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