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kramer
2 years ago
9

If the average price that cable subscribers are willing to pay for satellite TV service is $200 but the actual price they pay is

$80, how much is the consumer surplus per subscriber
Business
1 answer:
ZanzabumX [31]2 years ago
3 0

Answer:

120$ per subscriber

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Answer:

The goodwill is $9,220

Explanation:

Goodwill is the excess of purchase consideration paid to acquire a business over the fair value of net assets acquired.

Fair value of net assets acquired is the difference between the fair of assets acquired over the fair value of liabilities taken up which is shown below.

Net assets=$89,600-$14,800

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Since purchase consideration paid is $84020

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The goodwill of $9220  represents the premium paid over the net assets of Catteman's Steakhouse as a compensation to the owners of the business in return for their efforts of running the business and see go through different phases of development since the establishment of the business.

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3 years ago
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