Answer:
Wage rate is $5
Explanation:
The marginal utility of money=marginal utility of leisure/wage rate
When the formula is rearranged,wage rate is given thus:
wage rate=marginal utility of leisure/marginal utility of money
wage rate=15/3
wage rate =$5
In other words, the correct option is C,wage rate is $5
Option D would have been correct if the requirement was to calculate marinal utility of leisure
Answer:
a.
NPV X 44352,90
NPV Y 38729,29
b.
NPV X 28619,86
NPV Y 29008,94
Explanation:
To get the present value of each cash flow we use excel or spreadsheets.
File is attached with the comparison of both investments.
<u>Investment X </u>
Net Present Value (NPV) 44353 (Interest rate 8%)
Net Present Value (NPV) 28620 (Interest rate 20%)
<u>Investment Y </u>
Net Present Value (NPV) 38729
(Interest rate 8%)
Net Present Value (NPV) 29009 (Interest rate 20%)
Answer:
D. The marginal cost is at its minimum
Explanation:
Marginal Cost is the additional cost of producing an additional unit of output. Thus if the marginal product is at its maximum, the marginal cost will be at its minimum
Answer:
Explanation:
The Sharpe ratio is given by:
(Return of portfolio - risk free rate) / standard deviation.
