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balu736 [363]
2 years ago
13

Assuming john's parents do not allow him to use any savings. What is the optimal consumption bundle of pizza and funnel cakes? E

xplain.
Business
1 answer:
tamaranim1 [39]2 years ago
5 0

The optimal quantity of pizza slices for John to buy is 5 slices.

<h3>How to calculate the quantity?</h3>

From the information given in the diagram, it can be seen that the marginal utility from the consumption of the 6th slice is zero.

In this case, the optimal quantity of pizza slices for John to buy is 5 slices.

When John buys 8 slices, the total utility will be:

= 20 + 12 + 10 + 6 + 2 + 0 - 2 - 6

= 42 utils.

When John’s parents do not allow him to use any savings, his optimal consumption bundle of pizza and funnel cakes is $20.

At John’s optimal consumption bundle, the total utility that he will gain will be:

= (20 + 12) + (50 + 40 + 32 + 20)

= 32 + 142

= 174 utils

Learn more about optimal quantity on:

brainly.com/question/15700934

#SPJ4

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Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide $41
k0ka [10]

Answer:

Follows are the solution to this question:

Explanation:

In point A-1:

Calculating the value of Incremental sales after tax:  

Further revenues= $414,000  

Recognize(Less)=Costs

Debt worth =$33,120  

Set Exp. = $17,400    

Production and commercialization cost= $314,640  

Pre-sales tax =$48,840.  

Lower: 35%   tax = $17,094  

Incremental tax income =$31,746

In point A-2:

Determine profits for extra expenditure  

Extra spending on debts = \frac{ \$ 414,000}{\$ 5}

                                         = \$ 82,800.

Return on the Expenditure = \frac{\$ 31746}{ \$ 82800}

                                             = 38.34 \%

In point A-3:

Yeah, For the Fast Turnstiles company must provide certain consumers with loans.

In point B-1:

Incremental taxes after-tax calculation:  

Further sales = $ 414,000    

Return: Costs  

gross debt= $45,540    

Set Exp = $17,400  

Cost for production and marketing = $314,640  

Net profits=$ 36,420  

Without tax 35% = $12,747  

Incremental tax revenue= $23,673    

In point B-2:    

Determine profits for extra expenditure  

Extra investment in debts = \frac{ \$ 414,000 }{ \$ 5}

                                             = \$ 82,800

Incremental return on that investment = \frac{\$ 23673}{\$ 82800}

                                                                   = 28.59 \%  

In point B-3:      

Yeah, The Fast Turnstiles company must provide to certain consumers to credit.

In point C-1:    

The incremental tax revenue estimate  

$414,000 = excess revenue  

Remember Costs

Debt worth= $ 33,120  

set Exp = $17,400    

Production and commercialization cost=  $314,640  

Pre- sales  tax = $48,840.  

Less: 35% Tax = $17,094  

Incremental tax income=  $31,746  

Calculate profits for extra expenditure  

Extra Accounting Investment = \frac{\$ 414000}{1.6}

                                                 = \$ 258750

Incremental Return= \frac{\$ 31,746} {\$ 258,750}

                                = 12.27 \%

In point C-2:

Yeah, its credit should be granted to all these consumers through Fast Turnstiles company limited.

3 0
3 years ago
Junk bonds are high-risk, high-yield debt instruments. They are often used to finance leveraged buyouts and mergers, and to prov
Luda [366]

Answer:

true              

Explanation:

Junk bonds can be defined as the bonds that require a higher default risk than most corporate and government issued bonds. A bond is indeed a debt or promise to pay interest payments to investors in return for purchasing the bond and the return of the invested principal.

Junk bonds depict debt issued by financially struggling companies with a significant risk to defaulting or failing to pay even their own monthly payments or reimbursing the principal to lenders. Thus, from the above we can conclude that the given statement is true.

3 0
3 years ago
Mercier Corporation's stock is selling for $95. It has just paid a dividend of $5 a share. The expected growth rate in dividends
Anni [7]

Answer:

r = 13.68%

Explanation:

We can use Gordon growth model to calculate the stock price.

P = Do x (1+g) / r - g

P: stock price (Given: $95)

Do: Last dividend paid ($5)

g: Dividend growth rate (8%)

r: required return (Missing value)

By inputting the number into the above equation, we have the following:

95 = 5 x 1.08 / (r - 0.08)

--> r = 13.68%

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3 years ago
Under the fair-value method of recording stock options, companies will report
Alexxx [7]

Answer:  a higher compensation cost relative.

6 0
2 years ago
“ She turned to her shoulder partner to make sure that she had all that was presented” This is a active sentence how do you turn
Tpy6a [65]

Answer:

A shoulder was turned towards her partner to make sure everything that was presented was taken by her.

Explanation:

In order to change the active sentences into passive sentences, the object in the active sentence is changed into the subject. For example in the above given example, the object is shoulder which is changed into the subject and then the sentence is formed accordingly.

So now it becomes "A shoulder was turned towards her partner to make sure everything that was presented was taken by her."

I hope the answer is helpful.

Thanks for asking.

7 0
3 years ago
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