All categories

1 year ago

Assuming you are an economically rational consumer how many bottles of water will you consume?

1 answer:

6 0

A rational consumer will drink water unless its want is satisfied. The term "utility" refers to the overall satisfaction or benefit gained from using a good or service. The Customers will try to maximize their utility, according to a common assumption in economic theories of rational choice.

Understanding the economic utility of a good or service is critical because it has a direct impact on demand and, consequently, price. In practice, consumer utility is typically impossible to assess or quantify. Some economists believe that by employing a variety of models, they can indirectly assess the usefulness of an economic commodity or service.

To learn more about utility, click here.

brainly.com/question/14974491

#SPJ4

You might be interested in

Many economists are worried that a high level of budget deficits may lead to inflationary monetary policies in the future. Could

castortr0y [4]

Answer: Yes, the budget deficit will have on the current rate of inflation.

Explanation:

If the budget deficits have inflated the monetary policy, therefore, the monetary policy will affect the short run of aggregate supply curve. In this scenario, large budget deficits will shift the curve upward due to the increase in expected inflation, which will surely make the current inflation rate to be higher.

3 0

3 years ago

A company has determined that its optimal capital structure consists of 43 percent debt and the rest is equity. Given the follow

ale4655 [162]

Answer:

31.5%

Explanation:

Given from the question kd = 7.0 %

Tax rate = 35 %

P0 = $ 28.86

Growth g = 4.9 %

D1 = $ 0.94

First find the cost of common stock by

rS = D1/P0 + g

=0.94/$28.86 + 0.49

=0.523

= 52.3%

Finally, calculate the weighted average cost of capital WACC,

using rs= 0.523,

Tax rate =43% =0.43

Equity E 100% - 43% = 57% =0.57 and

kd=7.0 % = 0.07

so WACC = (D/A)(1 - Tax rate)kd+(E/A)rs

= 0.43(1 - 0.43)(0.07) + 0.57(0.523)

0.0172 + 0.298

= 0.315

= 31.5%

6 0

3 years ago

Many company websites are now designed to do more than just sell product. These websites, known as __________ websites, attemp

Yuki888 [10]

Answer:

These websites are known as "Brand community" websites.

Explanation:

A company's brand community website is one that allows customers connect with the brand on more personal levels and it gives them a sense of social identity.

Such a company can engage its customers and exchange ideas on how best to meet their needs.

3 0

4 years ago

Owner Shan Lois considering franchising her Noodles for a restaurant concept. She believes people will pay

makvit [3.9K]

Answer:

a) Break-even sales (BEP)= $15,750

b) Y<em>es, the franchise is good because the $63,000 sales that be generated by most locations is higher than the minimum sales revenue of $36,000 required to achieve the the target profit</em>

Explanation:

Contribution margin ratio= (sales-variable cost/sale )× 100

Break -even sales (BEP) = Fixed cost/Contribution margin ratio

CMR = (10.50 -6.30)/ 6.30= 66.7%

BEP= 10,500/66.7%= $15,750

To generate a minimum operating income of $13,500, the franchisee will need to make sales worth:

Sales revenue to achieve pre-determined income=( Fixed cost + Target income)/CMR

= (10,500. + 13,500)/0.667

= $36,000

Y<em>es the franchise is good because the $63,000 sales that be generated by most locations is higher than the minimum sales revenue of $36,000 required to achieve the the target profit</em>

5 0

3 years ago

Prat Corp. started the Year 2 accounting period with $33,000 of assets (all cash), $13,500 of liabilities, and $8,000 of common

Andru [333]

Answer:

1.Net Profit $12,850

Profit transfered to retained earnings $10,550

2. $37,450

3.$44,950

4a.$44,950

4b.CREDITORS=16.69%

INVESTORS=34.26%

EARNINGS=49.05%

Explanation:

1. Preparation of Income statement

Prat Corp. Income Statement

For the year ending 2018

Sales Revenue (Balancing figure) 40,350

(27,500+10,550+2,300)

Less: Expenses (27,500)

Net Profit 12,850

Less: Dividend (2,300)

Profit transfered to retained earnings $10,550

2. Preparation for Statement of changes in stakeholder's equity.

Common stock($) Retained Earnings($) Total($)

Opening Balance 8,000 11,500 19,500

(33,000-13,500-8,000)

Issue of common stock 7,400 - 7,400

Profit during the year - 12,850 12,850

(40,350-27,500)

Dividend paid - (2,300) (2,300)

Closing Balance $15,400 $22,050 $37,450

3. Preparation of Balance sheet

Prat Corp. Balance Sheet

As of December 31, 2018

ASSETS

Current Assets

Cash CFS 44,950

Total Assets 44,950

EQUITY AND LIABILITIES

Stockholder's Equity

Common Stock 15,400

Retained Earnings 22,050

Total Stockholder's Equity 37,450

Liabilities (13,500-6000) 7,500

Total Liability and stockholder's equity $44,950

(37,450+7,500)

4a. Preparation for Statement of Cash flows

Prat Corp. Cash Flow Statement

For the year ended 2018

Cash Flow from operating activites

Increase in Retained earnings 10,550

Net cash provided by operating activity 10,550

Cash flow from financing activity

Increase in common stock 7,400

Reduction in debt 6,000

Net cash provided by financing activity 1,400

(7,400-6,000)

Increase in cash 11,950

(10,550+7,400-6,000)

Cash at beginning of the year 33,000

Cash at end of the year 44,950

(33,000+11,950)

4b) Calculation to Determine the percentage of total assets that were provided by creditors, investors, and earnings.

CREDITORS=7,500/44,950

CREDITORS=0.1669*100

CREDITORS=16.69%

INVESTORS=15,400/44,950

INVESTORS=0.3426*100

INVESTORS=34.26%

EARNINGS =22,050/44,950

EARNINGS=0.4905*100

EARNINGS=49.05%

3 0

3 years ago