Answer:
B. not maximizing utility because the marginal utility per dollar spent on movies is not equal to the marginal utility per dollar spent on CDs
Explanation:
Consumer is at utility maximising equilibrium in case of two goods consumption, when Marginal Utility per unit of dollar spent on each good is equal , i.e :
MU (G1) / P (G1) = MU (G2) / P (G2) , where ;
MU (G1) = Marginal Utility of Good 1 , MU (G2) = Marginal Utility of Good2 , P (G1) = Price of Good 1 , P (G2) = Price of Good 2
If Marginal Utility per unit of dollar spent on any good is higher than other , it is beneficial (utility maximising) for consumer to increase consumption of good having higher MU/P .
Given: MU (Movie) = 50, P (Movie) = 5 , MU (CD) = 96, P (CD) = 10. MU (Mov) / P (Mov) i.e 50/5 = 10 > MU(CD) / P(CD) i.e 96 / 10 = 9.6
Since consumer's MU per unit of dollar spent is not equal for both goods , consumer is not at utility maximising equilibrium.
Answer:
Firm's overhead/Overhead Under Applied=$3,000
Explanation:
First calculate predetermined overhead:
Predetermined overhead= Estimated Overhead / Estimated labor hour
Predetermined overhead=
Predetermined overhead=$8 per labor hour
Overhead Applied=Predetermined overhead * actual direct professional labor hours..
Overhead Applied=$8 per labor hour*19,500
Overhead Applied=$156,000
Since Overhead Applied is less than actual overhead, so difference is under applied.
Overhead Under Applied=Actual overhead costs-Overhead Applied
Overhead Under Applied=$159,000-$156,000
Firm's overhead/Overhead Under Applied=$3,000
Answer:
The answers fro part 1 for (a) and (b)to this questions are explained in the explanation section below. (2) A journey was prepared for the entries to correct the error in 2021 (3) retrospectively
Explanation:
Solution
PART 1(A)
2019
The beginning inventory - No effect
Ending Inventory - Understated
The cost of good -Overstated
Net income - Understated
Retained earnings - Understated
No effect on any particulars in 2019 (effect of 2019)
PART 1 (B)
2020
The beginning inventory - Understated
Ending Inventory - Overstated
The cost of good -Understated
Net income - Overstated
Retained earnings - Overstated
(2) JOURNAL ENTRY
Debit ($) Credit ($)
Retained earnings Alc Debit 178,000
To inventory 178,000
(3) It is retrospectively
Answer:
the moon has an orbital period of 63.3 days. Calculate the average distance from the earth
Explanation:
calculate the escape velocity of a rocket fired from the earth surface, take (R=6400km)