1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
brilliants [131]
3 years ago
7

Alex doesn't care about where he lives, but he does care about what he eats. Alex spends all his money on restaurant meals at ei

ther American (x_a) or French restaurants (x_f). His firm offers to transfer him from its Austin office to its Paris office, where he will face different prices. The firm will pay him a salary in euros such that he can buy the same bundle of goods in Paris that he is currently buying in Austin.
1. Will Alex be better off in Paris if the relative prices between American and French meals (p_a/p_f) are lower in Paris than Austin? Why?
2. Will Alex be better off in Paris if the relative prices between American and French meals (p_a/p_f) are higher in Paris than Austin? Why?
Business
1 answer:
Levart [38]3 years ago
5 0

Answer:

Part 1). Yes, Alex be better off in Paris if the relative prices between American and French meals (p_a/p_f) are lower in Paris than Austin because his capability to buying goods growths so his cash is fundamentally value more locally.

Part 2) No, Alex be better off in Paris if the relative prices between American and French meals (p_a/p_f) are higher in Paris than Austin because even though he can buying the same components, they will cost extra, and he will consume less goods than living in Austin

You might be interested in
What is the periodic interest on a credit card with a 17.99% APR?
harina [27]
The answer to the question is D.998
4 0
4 years ago
At Infosoft Solutions, employees are encouraged to take care of their problems by working with one another and with customers, u
iragen [17]

Answer:

Decentralized

Explanation:

A decentralized organisation pushes decision-making authority to lower organizational levels i.e to middle and lower level management. Control of activities can be allocated to employees rather than to supervisors. Decentralization of authority enables top management to focus on major areas e.g strategic decisions. Infosoft Solutions exhibits characteristics of a decentralized organisation.

7 0
3 years ago
Suppose you have $1,500 and plan to purchase a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually.
ryzh [129]

Answer:

$ 1,781.53  

Explanation:

The future value of the 5-year CD can be determined by using the future value formula stated below:

FV=PV*(1+r)^n

FV is the future value which is expected future amount after 5 years

PV is the initial amount used in purchasing the CD i.e $1500

r is the rate of return on the CD on an annual basis which is 3.5%

n is the number of years the investment would last which is 5 years

FV=$1500*(1+3.5%)^5

FV=$1500*1.187686306

FV=$ 1,781.53  

8 0
4 years ago
An artisan who creates customized furniture has a customer who is interested in purchasing several pieces of furniture. The arti
koban [17]

Answer:

2) Set the price of each piece of furniture equal to the marginal cost of producing it.

Explanation:

What happens in two-part tariff is that the producer recovers the entire cost of producing by charging price equal to the marginal cost.

This helps him recover cost and the entire fee the producer charges results in profits eventually. Hence, the profits is the consumer 'surplus' that we calculate given that the price of product is equal to marginal cost.

So answer here is 2- Set the price of each piece of furniture equal to the marginal cost of producing it.

8 0
4 years ago
When Steven askes questions in an open-minded way, he avoids:
Elenna [48]
Attacking someone else's opinion. I hope this helps!
3 0
3 years ago
Read 2 more answers
Other questions:
  • The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information:
    10·1 answer
  • Who are the current customers/users of Google
    9·2 answers
  • If the price of a soda was 15 cents in​ 1970, when the cpi was​ 50, and 50 cents in​ 2007, when the cpi was​ 172, then
    5·2 answers
  • Block Island TV currently sells large televisions for $ 380. It has costs of $ 310. A competitor is bringing a new large televis
    6·1 answer
  • Kristen and Harrison are equal partners in the KH Partnership. The partners formed the partnership 5 years ago by contributing c
    5·1 answer
  • Suppose Fred has a payroll check from his place of employment, Kelsey's Pub. He then endorses the back of a check and gives it t
    13·1 answer
  • CL
    5·1 answer
  • If the government decreases tax rates for all Americans, we would expect to see:
    13·2 answers
  • A certificate of deposit pays a higher interest rate than a savings account because the money is quizlet
    6·1 answer
  • If a beneficiary is enrolled in a ma-only hmo and they also sign up for a pdp plan, they will be automatically dropped from thei
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!