Answer:
Explanation:
a. Total surplus is the area bounded by points a, b, and c. To calculate total surplus, we use the following formula for the area of a triangle: Area = ½ × Base × Height. The area between the demand curve and the supply curve for the quantity ranging from 0 to 20 is the total economic surplus. This is a triangle with a base (best read off the price axis) of $80, which is the price difference at Q = 0, or between points a and c, and a height of 20 (the number of units purchased in equilibrium). Using these values, we have a total surplus of (1/2) × $80 × 20 = $800.
The consumer surplus is the area between the demand curve and the equilibrium price line. Here we have a base of $40 (the price difference between the demand schedule price at Q = 0, which is $85, and the equilibrium price of $45). The height of the triangle is once again 20 (the number of units purchased in equilibrium). Using these values, we have a consumer surplus of (1/2) × 40 × 20 = $400.
b. Deadweight loss is the difference in total surplus between an efficient level of output Q1 and a reduced level of output at Q2. We can calculate this as the area of a triangle bounded by points bde. The base of this triangle is the difference in prices at points d and e, or $55 – $35 = $20. The height of this triangle is given by the difference in the restricted level of output of Q2 = 15 and the efficient level of output Q1 = 20, or 5 units. Thus, the area of this triangle (the deadweight loss) is equal to (1/2) × $20 × 5 = $50. The remaining total surplus can be found by subtracting the deadweight loss from the original (efficient) total surplus. This is $800 (maximum total surplus) – $50 (deadweight loss) = $750.
c. The deadweight loss from overproduction is the difference in total surplus between an efficient level of output Q1 and an additional level of output at Q3. We can calculate this as the area of a triangle bounded by points bfg. The base of this triangle is the difference in prices at points f and g, or $59 – $31 = $28. The height of this triangle is given by the difference in the additional level of output Q3 = 27 and the efficient level of output Q1 = 20, or 7 units. Thus, the area of this triangle (the deadweight loss) is equal to (1/2) × $28 × 7 = $98. The remaining total surplus can be found by subtracting the deadweight loss from the original total surplus. This is $800 (maximum total surplus) – $98 (deadweight loss) = $702. Note here that we maximize total (producer + consumer) surplus by producing the equilibrium quantity, but we lose surplus from overproduction (inefficient use of resources).
Answer:
Capacity utilization rate in October is 63.75%
Explanation:
Units produced in October = 18170
Units production in most efficient way = 28500
Capacity utilization rate in October = 18170 / 28500 = 0.6375
In percentage, it is 63.75%
Answer:
a. Make each sub-point exclusive
f. Divide the main topic into major components
Explanation:
Outline is a type of table of content that helps a reader to understand the scenario of the overall article or piece. Making an effective outline is a challenging task. However, the following things certainly can make an effective outline.
Putting the main idea in the title is one of them. Under the title, break the topic or title into major components (Option F). Using sub-points make the piece more relevant (Option A). Besides, moving sub-points to larger group or components make the article beautiful (Opposite of Option B). Do not separate the main topic from the title make an outline unclear (Opposite of Option D).
Answer:
Roth IRA account
Explanation:
The best type of account that you should save money in for Retirement is a Roth IRA account. This will allow you to put and save a maximum of $5,500 USD per year which will compound annually with interest and can be redeemed when you retire. Once you redeem your money at the age of 65 1/2 it will be completely tax-free. Meaning you have no liabilities with that money whatsoever and you can simply enjoy your retirement with that money.
Answer and Explanation:
The Preparation of classified balance sheet for Volz Cleaning, Inc., at the end of March is shown below:-
Assets
Current Assets:
Cash $27,000
($45,000 - $8,000 - $2,000 - $7,000 + $3,000 - $4,000)
Investment (short term) $4,000
($7,000 - $3,000)
Notes receivables $2,000
Total Current Assets $33,000
Long Term Non Current Assets:
Computer equipment $4,000
Delivery Truck $35,000
Total long term $39,000
Total assets $72,000
Liabilities
Liabilities
Notes payable $27,000
Total liabilities $27,000
Stockholder equity
Common Stock $6,000
Additional Paid in Capital $39,000
Total Stockholder's equity $45,000
Total Liabilities & Stockholder's
equity $72,000
