1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
LenaWriter [7]
3 years ago
10

Milk producers across Arizona and nationwide currently are facing prices that are so low that many dairies have already gone ban

krupt. The government decides to step in and establishes a price floor of $2 per gallon for milk. The current market equilibrium price for milk is $1 per gallon:
Business
1 answer:
Lelu [443]3 years ago
7 0

Question Completion:

What is a price floor?

Answer:

A price floor of $2 for milk producers across Arizona and nationwide means that the government does not want the price of milk to fall below $2.  This measure enables dairies to remain in operation.  It favors producers to the detriment of consumers, at least in the short-run.

Explanation:

However, assuming that the market was efficient before the price floor was introduced by the government, the price floor of $2 per gallon for milk could cause a deadweight loss to occur.  In Economics, a deadweight loss reduces economic efficiency.   It implies that consumers pay a higher price for the same quantity of goods they were purchasing before the price floor was introduced. Thus, the reaction of consumers would be to reduce their demand or drop out of the market entirely (instead of producers dropping out of the market through the normal operation of the market forces).

You might be interested in
Edgar, the production manager at a textile factory, has noticed a decline in the production capacity of the factory. He wants to
jek_recluse [69]

Answer:

A. Identifying and defining the problem

Explanation: Before taking any action in a production environment one must be able to identify and define the problem.

Problem identification and defining is first approach to solving problems as it gives a clear picture of what and how the problem is,when it started and the possible threats it pose to the business entity.

When a manager wants to address a problem, he should first identify the problem,carry out steps that will help him or her to define what the problem is,through this he or she can be able to develop possible solutions.

4 0
3 years ago
During the current year, Orr Company incurred the following costs: Research and development services performed by Key Corp. for
LuckyWell [14K]

Answer:

$525,000

Explanation:

The amount to be recognized as research and development expense for the year includes  the cost of research and development services performed by Key Corp. for Orr, the cost incurred on testing of pre-production prototypes and models as well as the cost of testing in search for new products or process alternatives,

In other words, all costs incurred would be expensed since no of them met the capitalization criteria as per  generally acceptable accounting principles

4 0
3 years ago
Hakeem wants to diversify his investment portfolio. He wants an asset with
dlinn [17]

Answer:

D

Explanation:if he would invest in commercial real estate it would be  commercial so he could do anything with it

4 0
2 years ago
Cane company manufactures two products called alpha and beta that sell for $225 and $175, respectively. each product uses only o
tester [92]

Answer:

The special order should be rejected since it decreases net profit.  

Explanation:

Alpha = $225

Beta = $175

total production capacity = 130,000 pounds

raw materials = $6 per pound

Production costs per unit                        Alpha                Beta

direct materials                                          $42                   $24

direct labor                                                 $42                   $32

variable manufacturing overhead            $26                   $24  

fixed manufacturing overhead                 $34                   $37

variable selling expenses                         $31                    $27

<u>common fixed expenses                          $34                   $29  </u>

total cost per unit                                    $209                 $173

Cane expects to sell 114,000 Alphas.

Net profit = (114,000 x $225) - (114,000 x $209) = $25,650,000 - $23,826,000 = $1,824,000

If the new sales order is accepted, Cane's revenue will increase to:

  • 101,000 x $225 = $22,725,000
  • 29,000 x $156 = $4,524,000
  • total = $27,249,000

Their total cost will by:

  • 114,000* x $209 = $23,826,000
  • 16,000 x ($209 - $34 avoidable fixed costs) = $2,800,000
  • total = $26,626,000

*This sale increases the output, but previous costs cannot be avoided.

Net profit with special order = $27,249,000 - $26,626,000 = $623,000

The special order should be rejected since it decreases net profit.  

6 0
3 years ago
Suppose autos cost consumers $30,000 and trucks cost consumers $15,000. What contribution does the production of 200 autos and 2
alexgriva [62]

Answer:

the  contribution made to the production of 200 autos and 200 trucks is $9,000,000

Explanation:

The computation of the contribution made to the production of 200 autos and 200 trucks is shown below

Contribution to GDP is

= $30,000 × 200 + $15,000 × 200

= $6,000,000 + $3,000,000

= $9,000,000

Hence, the  contribution made to the production of 200 autos and 200 trucks is $9,000,000

6 0
3 years ago
Other questions:
  • Is psychological marketing ethical in your opinion?
    5·1 answer
  • Morrison Foods has decided to introduce a new line of turkey products to the American consumer. Turkey steaks resemble beefsteak
    15·1 answer
  • Which of the following is an example of the unethical practice of discrimination at work?
    12·1 answer
  • 1. Who benefits when a customer purchases strawberries from a store?
    10·1 answer
  • On October 25, 1989, Mina Loy sent a letter to Carl Van Vechten which said, "I hereby offer to hire you to paint my house for $4
    11·1 answer
  • Answer the question on the basis of the following data for the hypothetical nations of Alpha and Beta. Qs is domestic quantity s
    5·1 answer
  • A. Suppose there is a surge in consumer confidence that creates an increase in aggregate demand in the economy. The Federal Rese
    14·1 answer
  • Mcniff Corporation makes a range of products. The company's predetermined overhead rate is $19 per direct labor-hour, which was
    8·1 answer
  • Armed only with his fingers, the owner decides that the safest forecasting approach is a linear trend line. His fingers are achi
    6·1 answer
  • positive economics ______ value judgments, tries to establish ______ statements about economic behavior, and deals with ______ e
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!