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bogdanovich [222]
3 years ago
7

Jessica spends all her income on two goods, A and B. The price of A is $5, and the price of B is $7. At the current consumption

bundle, the marginal utility of A is 10, and the marginal utility of B is 21. To maximize utility given her income, Jessica should:_____________
Business
1 answer:
masha68 [24]3 years ago
5 0

Answer:

Jessica should consume more of good A.

Explanation:

Jessica spends all her income on two goods, A and B.

The price of A is $5, and the price of B is $7.

At the current consumption bundle, the marginal utility of A is 10, and the marginal utility of B is 21.

The total utility is maximized when the ratio of marginal utility and price of the goods consumed is equal for all the goods in the bundle.

The ratio for Good A

= \frac{10}{5}

= 2

The ratio for good B

= \frac{21}{7}

= 3

Since the ratio is higher for good B, the consumer should shift from consumption of good B to good A until the ratio is equal for both the goods.

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The term is "selection".

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8 0
3 years ago
Robinson Manufacturing found the following information in its accounting​ records: $ 519 comma 800 of direct materials​ used, $
Damm [24]

Answer:

Cost of good manufactured=  $1507100

Explanation:

To calculate the cost of manufactured goods we need to use the following formula:

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Ending work in progress= 87600

Cost of good manufactured= 72400 + 519800 + 226700 + 775800 - 87600= $1507100

5 0
3 years ago
Charles Schwab in 1971 was determined to build a stock brokerage firm that would be different. He cited that he was disturbed by
Alecsey [184]

Answer:

D) The Agency Problem

Explanation:

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in this case, the brokers should act on behalf of their clients to make them earn the largest possible profits, but instead they focus on convincing them about transactions that increased the broker's profit and not the clients'.

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Which of the following is a challenge of marketing through online social networks?
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Idk I can’t see the choices sorry which I could help

8 0
3 years ago
Toward the end of the fiscal year, the owner of a small company came back from lunch concerned because he had learned that a bus
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Answer:

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3 years ago
Read 2 more answers
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