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Solnce55 [7]
3 years ago
8

Martha's current marginal utility from consuming orange juice is 75 utils per ounce and her marginal utility from consuming coff

ee is 50 utils per ounce. If orange juice costs 25 cents per ounce and coffee costs 20 cents per ounce, is Martha maximizing her total utility from the two beverages?
Business
2 answers:
vekshin13 years ago
7 0

Answer:

  • The two are not equal and not maximizing her utility.
  • Martha should more on orange juice and less on coffee

Explanation:

Martha's currently receiving 75 utils per ounce

orange juice costs 25 cents per ounce  = $0.25 per ounce

then 75 utils per ounce/ $0.25  per ounce = $300  utils from her last dollar spending on the orange juice though only 50 utils per ounce /$0.20 per ounce  = $ 250 utils per dollar from her last dollar exhausted on coffee

  • The two are not equal and not maximizing her utility.
  • Martha should more on orange juice and less on coffee.
siniylev [52]3 years ago
3 0

Answer:

Explanation:

marginal utility from orange juice (MUo) = 75

marginal utility from coffee (MUc) = 50

cost of orange juice (Po) = $0.25

cost of coffee (Pc) = $0.20

Utilis per dollar from orange juice = 75 / 0.25

                                        = 300

Utilis per dollar from coffee = 50 / 0.20

                                        = 250

This shows at the present paces of utilization, the spending of Martha's yield that negligible utility per dollar is higher for juice orange when contrasted with coffee. In this manner, the all out utility for Martha isn't expanding. To maximize utility, the minor utility percent for all merchandise or goods ought to be the equivalent.

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4 0
3 years ago
Marjorie's Mugs sold 300 mugs last year for $20 each. Variable costs were $7 per mug and total fixed costs were $1,700. Marjorie
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The total profit Marjorie's mugs are  = $2200

<h3>What is Variable cost?</h3>

Variable costs are expenses that alter as the volume of a good or service a company produces fluctuates. Marginal costs multiplied by the number of units produced make up variable costs. They can be regarded as typical expenses as well. Total cost is divided into two parts: fixed costs and variable costs.

<h3>What is fixed cost?</h3>

Fixed costs, also known as indirect costs or overhead costs, are expenses incurred by a firm that are independent of the volume of goods or services the business produces. They typically have a periodic nature, such monthly rent or interest payments. These expenses frequently also involve capital costs.

<h3>According to the given information:</h3>

Total mugs sold  = 300

mugs sold at = 20

variable cost = 7

total fixed cost = 1700

find the profit:

profit  = (300*(20-7) - 1,700)

         = $2,200

The total profit Marjorie's mugs are  = 2200

To know more about Variable cost visit:

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M10-14 Analyzing the Impact of Transactions on the Debt-to-Assets Ratio [LO 10-5] BSO, Inc., has assets of $600,000 and liabilit
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Answer:

The each transaction affecting or not the debt to assets ratio is given below;

1-Purchased inventory of$20,000 on credit

2-Paid accounts payable amount of $50,000

3-Recorded accrued salaries of $100,000

4-Borrowed $250,000 from a local bank

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