If you are willing to sell your car business for $500,00 . and someone offers you $420,00 . for it, this transaction will generate:
a. There is no surplus created
b. $80,00 . worth of seller surplus and unknown amount of buyer surplus
c. $40,00 . worth of buyer surplus and $40,00 . of seller surplus
d. $80,00 . worth of buyer surplus and unknown amount of seller surplus
a
You might also like to view...
Increases in population shift the market supply curve for labor to the right
Indicate whether the statement is true or false
The idea of interchangeable parts, which was an important aspect of the American System of Manufacturing, is attributed by Hughes and Cain (2011) to
(a) Henry Ford, who used it in the production of automobiles. (b) Adam Smith, who suggested it in his book The Wealth of Nations. (c) Thomas Jefferson, who used it in his "nailery" on his plantation. (d) Eli Whitney, who used it in the production of guns.
If an unregulated monopolist operates in a market, then: a. customers will pay higher prices than if the market were competitive
b. customers will purchase fewer units of output than if the market were competitive. c. society will not be allocating its resources efficiently. d. all of the above will occur.
Sales maximization may be a goal of a firm if
a. firms are managed by irrational persons. b. the firm has no way to measure profitability. c. the firm is privately held, and there is no separation between ownership and control. d. managerial bonuses are based on sales revenue instead of profitability.