All categories

2 years ago

Why is it in our self-interest to economize or pick and choose goods and services that maximize our satisfaction?

1 answer:

8 0

It is our self-interest to economize or pick and choose goods and services that maximize our satisfaction because of our limited incomes conflict with our insatiable wants for goods and services.

In the microeconomics theory, the individual's agents who were the consumers are trying all the time to satisfy their needs because of the fact that there exists an unlimited wish for goods and services which keep on continuing to grow all the time and it gets conflicted with the fact as most of the people have only limited resources to get their necessary income to purchase those goods and services.

Thereby consumers always look for a way to maximize their satisfaction from the available income that they hold on to with the purpose to spend on goods and services.

The resources which we value particularly such as time, money, labor, land, tools, and raw materials which are available in a limited supply. Simply there are never enough resources to meet all our desires and requirements. This condition is termed scarcity.

Learn to know more about the need to economize the self-interest in goods and services that maximize our satisfaction on

brainly.com/question/17583379

#SPJ4

You might be interested in

Indiana Co. bega n a construction project in 2018 with a contract price of $150 million to receive when the project completed in

Liula [17]

Answer: C) Recognized $9 million gross profit on the project in 2018.

Explanation:

Duration of construction project from 2018 to 2020 = 3 years

Cost incurred by Indiana co. in 2018 = $36 million

Estimated additional cost for the remainder of the project = $84 million

Total cost to be incurred over the duration of the project = $36 million + $84 million = $120 million

To calculate the percentage of the project completed, we use the cost figures;

Cost incurred so far (in 2018) ÷ Total cost to be incurred × 100

36,000,000/ 120,000,000 × 100 = 30%

Total revenue from contract (which is the contract price) = $150 million

Indiana Co. recognizes revenue according to the percentage of the project completed. Therefore, revenue recognized after 30% of the project is completed (which is the revenue for 2018) = 30% of $150,000,000

Revenue for 2018 = 30/100 × 150,000,000 = $45,000,000

Profit recognized on the project in 2018 = Revenue for 2018 - Cost incurred in 2018

Profit = $45,000,000 - $36,000,000

Gross profit recognized in 2018 = $9,000,000

5 0

3 years ago

Explain five importance of a division of labour in production

bearhunter [10]

Explanation:

INNOVATION: When workers are set specific tasks, that is their pure focus. So it becomes easier to see pitfalls in the existing process. Doing the same task each day makes it easier to analyse areas for improvement. It takes up more of the brains processing power, so it is at the forefront of a workers mind.

HIGHER WAGES: It must be said that not all the productivity gains are necessarily passed on to the consumer. A proportion may go to profits, whilst some may go to higher pay for employees.

CHEAPER PRODUCTS: It must be said that not all the productivity gains are necessarily passed on to the consumer. A proportion may go to profits, whilst some may go to higher pay for employees.

PRODUCTIVITY: When workers focus solely on a specific task, they can master it quicker and more efficiently. In turn, workers become more productive.

EFFICIENT MASTERY: Without the division of labor, mastery of a skill takes much longer. This is because a workers attention is spread across many areas.

For instance, it would be difficult to master a language if you are also trying to learn the piano, engineering, CSS, and economics. So, the division of labor allows the worker to focus and master a specific part of the process, which helps them learn it faster.

6 0

3 years ago

The original purchase price of a car is $25,000. each year, its value depreciates by 13%. three years after its purchase, what i

dezoksy [38]

25,000*(1-0.13)^3= 16,462.58

4 0

3 years ago

Suppose that short-term municipal bonds currently offer yields of 4%, while comparable taxable bonds pay 5%. Whichgives you the

Hatshy [7]

Answer:

a. 5.00%

b. 4.50%

c. 4.00%

d. 3.50%

Explanation:

The after tax yield is determined by the formula given below;

Equivalent Taxable Yield = r * (1 - t)

a. when t = 0 then 5% * (1 - 0)

= 5.00%

When t=0, the after tax yield for taxable bond is same as before tax yield and is greater than municipal bond.

b. when t = 10% then 5% * (1 - 10%)

= 4.50%

c. when t = 20% then 5% * (1 - 20%)

= 4.00%

d. when t = 30% then 5% * (1 - 30%)

= 3.50%

6 0

3 years ago

Peter’s Pizzeria sells both pizzas and wings. It wants to increase the sales of its pizzas. If it decides to increase the price

Mashcka [7]

Answer:

<u>The correct answer is</u>: a) the pizza and the wings are substitutes.

Explanation:

Analyzing the scenario of the question above, in the case of Peter's pizzeria, which sells pizza and wings and wants to increase the sale of pizzas by adopting a strategy of increasing the price of wings, in this case, he is assuming that pizza and wings are substitutes .

Substitute goods are those that can be consumed in substitution for another good, even if they are in different categories, as long as they perform the same function, but in a different way.

3 0

3 years ago