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
erica [24]
3 years ago
7

Dan owns an autographed copy of a brittany spears cd that he values at $100. if he sells the cd at the garage sale he's planning

to hold in a few weeks, it will be sold to a buyer with a reservation price of $175. if he sells it on ebay, it will be sold to a buyer with a reservation price of $500. ebay will charge dan $50 to auction the cd, which just covers ebay's opportunity cost of running the auction. relative to selling the cd at his garage sale, auctioning the cd on ebay will lead:
Business
1 answer:
Delvig [45]3 years ago
8 0

The complete question is as follows:

Dan owns an autographed copy of a Brittany Spears CD that he values at $100. If he sells the CD at the garage sale he’s planning to hold in a few weeks, it will be sold to a buyer with a reservation price of $175. If he sells it on eBay, it will be sold to a buyer with a reservation price of $500. eBay will charge Dan $50 to auction the CD, which just covers eBay’s opportunity cost of running the auction. Relative to selling the CD at his garage sale, auctioning the CD on eBay will lead:

A. to no change in total economic surplus.

B. total economic surplus to increase by $500.

C. total economic surplus to increase by $275.

D. total economic surplus to increase by $100.

Answer: C - Total economic surplus to increase by $275.

In this question, we only need to consider producers' surplus since we're considering the various options for Dan to sell his CD.

We calculate Producer's Surplus as follows:

Producer's surplus = Market Selling Price - Economic Cost.

Economic costs not only refers to explicit costs like cost of the CD, but also includes opportunity costs. Since we need to calculate producer's surplus when Dan sells on Ebay, we need to consider the following costs:

Value of the CD = $100

Ebay's opportunity cost that Dan will have to bear = $50

Profit Dan would've received in garage sale = $75 ($175 - $100)

Among the three expenses listed above, the profit Dan would've got in the garage sale is considered the <u>implicit cost or opportunity cost.</u>

Substituting the values we have in the equation above, we get,

Producer's Surplus = 500 - (100+50+75)

Producer's Surplus = 275

You might be interested in
The main reason people save during their working years is: a. a preference toward matching income with spending over time. b. a
FrozenT [24]

Answer: The correct answer is "d. a preference toward a smooth consumption path over time.".

Explanation: The main reason people save during their working years is a preference toward a smooth consumption path over time since they prefer to consume what is just and necessary so that in the future, even if they are affected by different circumstances, they can continue to maintain the same standard of living and / or consumption.

6 0
3 years ago
Read 2 more answers
A change in quantity supplied of a product is the result of a change in
jekas [21]
Demand supply and market equilibrium will have many changes due to change in the quantity of a supplied product.
5 0
3 years ago
A company purchased $10,300 of merchandise on June 15 with terms of 2/10. n/45, and FOB shipping point. The freight charge, $650
Mariana [72]

b should be that correct answer

7 0
3 years ago
Adkins Bakery uses the modified halfminusmonth convention to calculate depreciation expense in the year an asset is purchased or
nirvana33 [79]

Answer:

The correct answer is $9187.5.

Explanation:

According to the scenario, the given data are as follows:

Asset cost = $140,000

Residual value = $42,000

Life period = 8 years

So, Annual depreciation can be calculated by using following method:

Annual depreciation = ( Asset cost - Residual value) ÷ Life period

= ($140,000 - $42,000) ÷ 8

= $12,250

As depreciation is to be recorded till Dec.31

So, total time period = Apr - Dec = 9 months

So, Depreciation expense till Dec.31 = $12,250 × (9 ÷ 12)

= $9,187.5

Hence, Depreciation expense till Dec.31 is $9,187.5.

7 0
3 years ago
Teamwork processes have a moderate positive effect on ________ and a strong positive effect on ________.
Salsk061 [2.6K]

Teamwork processes have a moderate positive relationship with team performance and a strong positive effect on team commitment.

<h3>What is team relationship?</h3>

This is a relationship that exist within a team which brings about progress to an organization.

An effective team work would create an enabling work environment hence enables team member become more effective and efficient.

Hence, teamwork processes have a moderate positive relationship with team performance and a strong positive effect on team commitment.

Learn more about team relationship here : brainly.com/question/26491505

5 0
2 years ago
Other questions:
  • Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $6,500 cash and
    8·1 answer
  • An increase in government spending of $200 million financed by a new tax of $200 million in an economy with a marginal propensit
    12·1 answer
  • American Bank quotes a bid rate of $0.026 and an ask rate of $0.028 for the Indian rupee (INR); National Bank quotes a bid rate
    7·1 answer
  • Marker Corp. exchanged an old truck for a piece of equipment and cash on January 1st 2019. The truck was purchased at a cost of
    6·1 answer
  • Which major NIMS Component describes systems and methods that help to ensure that incident personnel and other decision makers h
    6·1 answer
  • If you invest $100 today in a bank account that pays a one time interest at the end of each year (you leave the interest you col
    5·1 answer
  • On June 1 of the current year, Jack and Angie purchased a rental beach house for $900,000 and rented it right away. Of that amou
    9·1 answer
  • Hilary had an outside basis in LTL General Partnership of $10,000 at the beginning of the year. LTL reported the following items
    7·1 answer
  • Suppose recent regulatory reforms relating to credit rating agencies are perceived to improve the reliability and accuracy of cr
    9·1 answer
  • 5. One-year interest rates are 2% in the U.S. and 5% in Canada. “Jackie the carry trader” borrows $3,000,000 to execute a carry
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!