All categories

2 years ago

Can policy market interventions cause consumer or producer surplus.

Business

1 answer:

kifflom [539]2 years ago

7 0

Answer:

What government interventions cause consumer or producer surplus?

There are two main economic effects of a tax: a fall in the quantity traded and a diversion of revenue to the government. A tax causes consumer surplus and producer surplus (profit) to fall..

Explanation:

its a tax

You might be interested in

The Peridot Company purchased machinery on January 2, 2016, for $800,000. A five-year life was estimated and no residual value w

horsena [70]

Answer:

Change in accounting estimate

Depreciation for 2018: $80,000

Explanation:

A change in accounting estimate occurs when there is new information that surfaces, affecting the initial situation. It can affect the carrying amount of an asset or liability as well as alter the accounting for existing and future assets or liabilities.

The machine has a cost of $800,000. It is depreciated using the straight-line method of depreciation. Hence, the depreciation expense is the same annually throughout the life of the asset.

Annual depreciation = (Cost of asset - salvage value) / number of useful years

Old annual depreciation = ($800,000-0) / 5 = $160,000 per year.

By January 2018, the asset has depreciated for two years. Hence the book value of the asset as at 2018 is the difference between the cost of the asset and the total depreciation expense i.e. $800,000 - (160,000 x 2)

= $480,000.

According to the new depreciation estimate, the asset has a useful life of 8 years. Hence the remaining years is 6 years ( 8 - 2).

The annual depreciation currently is = ($480,000 - 0) / 6 = $80,000

Depreciation expense for 2018 = $80,000

5 0

3 years ago

Identify and explain two reasons why it would be important for Bill to be motivated if he starts

adoni [48]

Answer:

To have a positive mindset to start ??? idk

Explanation:

8 0

3 years ago

How do you think keeping a budget can impact your overall wealth?

gregori [183]

Answer:

the more money that you save over time the more money you will have to buy nicer things... and if you keep spending money on stupid things you wont have enough money to buy more expensive things if you will.

Explanation:

8 0

3 years ago

Read 2 more answers

Emily's trust fund has a value of 100,000 on January 1, 1997. On April 1, 1997, 10,000 is withdrawn from the fund, and immediate

mafiozo [28]

Answer:

(a) Dollar Weighted Rate of return = 0.27

(b) Simple interest-based rate of return = (115000- 100000)/ 100000 = 0.15

(c) Since, the data or investment portfolio of Emily is of one year, we can calculate the money weighted rate of return but time weighted rate of return couldn’t be calculated.

Explanation:

For (a) Dollar Weighted Rate of return = 0.27

<em>Calculations:</em> 115000 = ((-10000) *(1 + r) ^ ((365-90)/365)) + 100000*(1+r)

So, using calculator we found r= 0.27

Here we’ve equated the value of portfolio at Jan 1, 1998 with Value of portfolio on Jan 1, 1997 and using the formula for money weighted average rate of return we’ve found the rate of return. Since, we are taking annual money weighted average rate of return, so we don’t include the value of July cash flow, i.e. $5000.

For (b) Simple interest-based rate of return = (115000- 100000)/ 100000 = 0.15

Since, the distribution of deposits and withdrawals is uniform, so it is simply the newer value minus original value divided by the original value and is most likely to percentage calculation.

(c) Since, the data or investment portfolio of Emily is of one year, we can calculate the money weighted rate of return but time weighted rate of return couldn’t be calculated.

4 0

3 years ago

Brickhouse is expected to pay a dividend of $3.00 and $2.40 over the next two years, respectively. After that, the company is ex

Damm [24]

Answer:

$31.9211

Explanation:

We discount the future two year dividends at the required rate of return

and solve for the present value of the infinite series of dividends growing at 3.6% with the dividend grow model:

$\frac{D_1}{r-g} =PV$

$\frac{2.4 (1.036)}{0.11-0.036} = PV$

PV 33.6

Then we discount this by the two years ahead of time these cashflow start and add them to get the PV of the stock which is their intrinsic market value

$\left[\begin{array}{ccc}Year&cashflow&PV\\&&\\1&3&2.7027\\2&2.4&1.9479\\2&33.6&27.2705\\&TOTAL&31.9211\\\end{array}\right]$

6 0

3 years ago