Answer:
Marginal utility is the benefit of consuming additional unit of a product and it is inversely proportional to price.
Explanation:
Utility is the satisfaction derived from consuming a particular product.
As consumption continues, marginal utility is the benefit of consuming additional units of the product. Marginal utility reduces as consumption increases.
So the consumer is less willing to buy at current price. However the consumer will be more willing to buy more at a reduced price.
The campus bookstore is using the knowledge of this by selling the first mu for $10 and subsequent one for $6. The consumer will still be willing to buy at the reduced price.
Answer:
- <u><em>Option B. $1,025 a month for 10 years.</em></u>
Explanation:
Calculate the present value of each option:
Formula:
![PV=C\times \bigg[\dfrac{1}{r}-\dfrac{1}{r(1+r)^t}\bigg]](https://tex.z-dn.net/?f=PV%3DC%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B1%7D%7Br%7D-%5Cdfrac%7B1%7D%7Br%281%2Br%29%5Et%7D%5Cbigg%5D)
Where:
- PV is the present value of the constant monthly payments
- r is the monthly rate
- t is the number of moths
<u>1. Option A will provide $1,500 a month for 6 years. </u>
![PV=$\ 1,500\times \bigg[\dfrac{1}{(0.005\overline 6}-\dfrac{1}{0.005\overline 6(1+0.005\overline 6)^{(6\times12)}}\bigg]](https://tex.z-dn.net/?f=PV%3D%24%5C%201%2C500%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B1%7D%7B%280.005%5Coverline%206%7D-%5Cdfrac%7B1%7D%7B0.005%5Coverline%206%281%2B0.005%5Coverline%206%29%5E%7B%286%5Ctimes12%29%7D%7D%5Cbigg%5D)
<u>2. Option B will pay $1,025 a month for 10 years. </u>
![PV=$\ 1,025\times \bigg[\dfrac{1}{(0.005\overline 6}-\dfrac{1}{0.005\overline 6(1+0.005\overline 6)^{(10\times12)}}\bigg]](https://tex.z-dn.net/?f=PV%3D%24%5C%201%2C025%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B1%7D%7B%280.005%5Coverline%206%7D-%5Cdfrac%7B1%7D%7B0.005%5Coverline%206%281%2B0.005%5Coverline%206%29%5E%7B%2810%5Ctimes12%29%7D%7D%5Cbigg%5D)
<u>3. Option C offers $85,000 as a lump sum payment today. </u>
<u></u>
<h2 /><h2> Conclusion:</h2>
The present value of the<em> option B, $1,025 a month for 10 years</em>, has a the greatest present value, thus since he is only concerned with the <em>financial aspects of the offier</em>, this is the one he should select.
Answer:
c. the exchange of goods and services for goods and services without the use of money
Explanation:
Barter the exchange of goods and services for goods and services without the use of a medium of exchange such as money.
In a barter, money doesn't change hands.
An example of a barter- I want a pair of shoes worth $30. I see someone that has the shoes but wants textbooks worth $30. I have these textbooks. I give him the textbooks and he gives me the shoes.
I hope my answer helps you
Answer: (C) When a country's real exchange rate appreciates, it imports more and exports less, causing its net exports to fall.
Explanation:
When a country's real exchange rate appreciates i.e the value of its currency increases, it imports more because more products could be bought with the same amount of the currency as a result of its increased value, and it export less because their goods would become more expensive for other countries resulting in reduced demand. Therefore, resulting in the fall of its net export. This is a form of trade balance.
