As a general rule, utility-maximizing choices between consumption goods occur where the <u>price ratio and </u><u>marginal utilities</u><u> ratio of two goods are equal.</u>
Marginal application is the delivered satisfaction that a patron gets from having one greater unit of a terrific or provider. The idea of marginal software is utilized by economists to determine how great a deal of an item consumers are inclined to buy.
In economics, marginal utilities are the pleasure or advantage derived by ingesting a product. The marginal application of an amazing or carrier describes how a great deal of delight or pride is gained or misplaced by means of consumers because of the increase or decrease in intake by means of one unit. There are three sorts of marginal software. They're effective, negative, or zero marginal utility. For instance, if you like consuming pizza, the second piece of pizza brings you greater pleasure than best eating one piece of pizza. It approaches your marginal application from shopping pizza is fine.
However, after ingesting the second piece you feel complete, and you would not experience any higher from consuming the third piece. this indicates your marginal software from eating pizza is 0. Moreover, you would possibly experience unwell in case you devour more than three pieces of pizza. presently, your marginal application is bad. In other words, a terrible marginal utility indicates that each unit of goods or carrier fed on will do extra damage than desirable, with a view to causing the decrease of common utility level, while the nice marginal software shows that every unit of goods or services fed on will increase the general utility degree.
Learn more about marginal utilities here brainly.com/question/27491456
#SPJ4
Answer:
The answer is C.
Explanation:
The US firm is using derivatives to hedge against the risk of Swiss francs falling.
A futures contract is the type of contract that two parties (one the buyer and the other the seller) the buyer will purchase an underlying asset(Swiss francs) from the seller at a later date in the future and at a price agreed by both parties. Futures is a standardized derivatives and it is traded in exchange.
To sell a futures contract or forward contract means the seller is anticipating fall or drop in value or price of the underlying asset (Swiss francs) and we say the seller is holding a short position.
While to buy a futures contract or forward contract means the buyer is anticipating an increase or rise in value or price of the underlying asset (Swiss francs) and we say the seller is holding a long position.
So since the US firm is anticipating a fall in value of Swiss francs, he will sell a futures contract on the Swiss francs
So we first need to find the profit per unit, which means we need to find the number of units sold
profit = (sales price* quantity) - variable cost*quantity - fixed costs
plug in what we know
300,000 = (20q) - 12q-25,000
275,000 = 8q
q= 34,375 units produced. Then take profit/units = 300,000/34375 = 8.73 profit per unit
Now if we sell 5,000 more units, we would have 8.73*5000 = 43,636.36 additional profit
These are examples of <u>work-related</u> characteristics
Answer:
Earning per share = 2.166
Price earning = 10.15
Times interest earned = 5.4
Explanation:
Common stock outstanding at end = Shares outstanding (open) +Shares issued.
= 50000+10000= 60000 outstanding shares (at end)
a.)we know that earning per share =<u> net income - preference dividend</u>
Common shares outstanding at end
= ( N#1) <u>135000 - 5000</u>
60000
= 2.166 earning per share
(N#1):To calculate net income we will need statement of changes in equity,Suppose par value of shares = $10,
we have Beginning equity + net income - Dividend = Equity (end)
Net Income = 600000+35000-500000
Net income = 135000
b.) Price earning = <u>Market value per share </u> = <u>22 </u> = 10.15
Earning per share 2.166
c.) Times interest earned =<u> Income before interest and taxes</u> or EBIT
Interest expense
EBIT = 135000
= 135000 / 25000 = 5.4 times