Answer:
The economic surplus will decrease by $2.20
Explanation:
$81.40 and $79.20 are <em>marginal </em>cost and benefit, which are the changes to total costs and total benefits due to producing and consuming one additional barrel of oil.
They can be used to calculate <em>change </em>to economic surplus, which is the change to the net economic value received by society, which is given by:
marginal benefit - marginal cost = $79.20 - $81.40 = - $2.20
Answer:
First Financial would divide the $10,500 loan by the present value of annuity due of 1.
The correct answer is C
Explanation:
Present value of annuity formula is used for determining the amount of loan payment. Since the payments will be made at the beginning of each month, we will apply the formula for present value of annuity due. In order to determine the amount of monthly payment, we will divide the principal by the present value of annuity due of 1.
Answer:
$28,300
Explanation:
Missing word: "<em>Calculate free cash flow."</em>
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Free cash flow = Operating cash flow - Capital expenditures - Dividends
Free cash flow = $361,200 - $206,000 - $126,900
Free cash flow = $28,300
So, the Free cash flow of Hinck Corporation is $28,300.
Answer:
The correct answer is the option B: False.
Explanation:
To begin with, the price discrimination strategy refers to a technique used by the companies in order to charge different prices to the different consumers regarding the fact of how much would they be able to pay for the product. When it comes to monopolies, a perfect price discrimination strategy would try as best as possible to capture the majority of the zone known as the <em>"consumer surplus"</em>. And that is why that a company with a perfect price discrimination would face a small deadweight loss area due to the fact that with that strategy of price the monopolist will absorve as much as possible of that area becuase the triangle is half consumer surplus and half producer surplus.
Trello!
it should be TRUE!
have a nice day :D
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