Answer: should buy less B and more A.
Explanation:
Price of good A, PA = $2
Price of good B, PB = $4
The marginal utility on the last unit of A, MUA is given as 16
The marginal utility on the last unit of B, MUB is given as 24
Then, the marginal utility on the last dollar spent on A will be:
= MUA/PA
= 16/2
= 8
The marginal utility on the last dollar spent on B will be:
= MUB/PB
= 24/4
= 6
Based in the above calculation, Thomson should buy less B and more A as the marginal utility on the last dollar that is spent on A is more than that of B.
Answer:
The Equity for the bank will be $260
Explanation:
Assets of the banks are
Reserve = $60
Bond = $400
Loans = $600
Total Asset = $1,060
Liabilities of the banks are
Deposit = $500
CD's: = $300
Total Liabilities = $800
Equity = Asset - Liabilities
Equity = $1,060 - 800
Equity = 260
The maximum amount of the bank to sustain without becoming insolvent their Equity is $260
Answer:The answer is to sell 300 units to make $15,000 in proft
Explanation: add $30,000 and $15,000 then divide the sum of that with 150 to get how many units are needed to solve.
Answer:
A
Explanation:
A company has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries
For example, in 1 hour, country A produces 10kg of beans and 5kg of rice and country B produces 5kg of beans and 10kg of rice.
Country A has absolute advantage in the production of beans while country B has absolute advantage in the production of rice
A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.
Answer:
Explanation:
First, find the Pretax cost of debt i.e the YTM.
You can compute this using a financial calculator with the following inputs;
FV = 1,000
N= 10
PMT = 0.11*1000 = 110
PV = -1,278.41
then CPT I/Y = 7.03%
Therefore, the pretax cost of debt = 7.03%
Next, find after-tax cost of debt
After-tax cost of debt = pretax cost of debt (1-tax)
= 7.03% (1-0.25)
= 5.27%