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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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Slav-nsk [51]

Answer:

d. internal politics

Explanation:

Considering all the options given

Option a technological advance is a valid basis for identifying potential projects in most organizations as it may be the key driver for the profitability of a project. An investment in a technology that becomes or is obsolete would most likely result in a loss.

Option b environmental consideration is also a valid basis for identifying potential projects as a company's reputation may be jeopardized if a project is not environmentally friendly

Option c social need is also a valid consideration as the need of the consumer may determine the viability of a project.

Internal politics option d is is the only option that does not influence the viability of a project.

4 0
2 years ago
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Fofino [41]

Answer:

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Explanation:

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The income statement is prepared which presents the income and expenditure for a period which has lapsed.

Basically for a period that is past now. When future projections are created based on analysis and expectations then it is called budget.

Budgets reflects the expected performance of the company in the near future, based on the estimate about what the company members can perform.

6 0
2 years ago
How is a subsidy affect supply.
OlgaM077 [116]
How does a subsidy affect supply?
A subsidy by nature increases the purchasing power of the individual or class it is awarded to. It's like free money that can only be spent on certain things.
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describe the efforts that local governments should make to increase local revenue from the tax sector!
Talja [164]

Answer:

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What is capital market?
goblinko [34]
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