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Marianna [84]
2 years ago
9

If the price of steak rises, a consumer who had been maximizing his or her utility before will buy less steak because its?

Business
1 answer:
Naddik [55]2 years ago
5 0

If the price of steak rises, a consumer who had been maximizing his or her utility before will buy less steak because its "marginal utility to price ratio is now lower than for other items."

<h3>What is marginal utility?</h3>

In economics, marginal utility is the optimum quality or benefit (utility) which a buyer receives by purchasing an additional units of a product or service.

Some key features regrading the marginal utility are-

  • The concept means that the utility and benefit of an extra unit of a product to a consumer is proportional to the quantity of units of such a product he currently owns.
  • The given example shows marginal usefulness.
  • The marginal value of one piece of bread provided to a family of seven will be considerable, because the family will be less hungry, as well as the difference between 7 and 8 is proportionally significant.
  • A extra bread slice supplied to a family with 30 slices, on the other hand, has less marginal utility so because difference among 30 & 31 is proportionally lower and the family's hunger has already been satisfied.
  • Thus, as a consumer of a product purchases further and more of the commodity, his marginal utility drops until he has no need for any extra units at all.
  • The marginal utility then is equal to zero.

To know more about the marginal utility, here

brainly.com/question/15050855

#SPJ4

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When a firm issues 50,000 shares with a par value of $5 for $22 per share, additional paid-in capital will:
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Answer:

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Explanation:

Additional paid up capital: It is that paid up capital which is excess of par value. It is mentioned in the balance sheet when new shares is issued.

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where,

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= $850,000

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4 years ago
Shi Importers' balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity
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Answer:

The WACC can be calculated as below;

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Now putting above values in the given formula we get;

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