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Rus_ich [418]
3 years ago
9

Mrs. Simpson buys loaves of bread and quarts of milk each week at prices of $1 and 80 cents, respectively. At present she is buy

ing these products in amounts such that the marginal utilities from the last units purchased of the two products are 80 and 70 utils, respectively.
Business
1 answer:
bekas [8.4K]3 years ago
5 0

Answer:

Mrs. Simpson should buy less bread and more milk.

Explanation:

Besides the nutritional differences between bread and milk, Mrs. Simpson is not buying the utility-maximizing combination of bread and milk.

When she purchases bread, she is paying $1 for 80 utils, that means that the marginal cost of every util is 1.25¢.

When she purchases milk, she is paying $0.80 for 70 utils, that means that the marginal cost of every util is 1.14¢.

So the marginal cost per additional util is lower for milk.

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Who is responsible for ensuring the policies and procedures are implemented across the organization and acts as a liaison betwee
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8 0
2 years ago
What does making a good decision mean?? How can I make a good decision?
kherson [118]

Answer:

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3 years ago
At the high level of activity in November, 12000 machine hours were run and power costs were $20000. In April, a month of low ac
Salsk061 [2.6K]

Answer:

$6,500

Explanation:

For computing the estimated fixed cost, we have to determine the variable cost per hour which is shown below:

Variable cost per hour = (High power cost - low power cost) ÷ (High machine hours - low machine hours)

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= $20,000 - $13,500

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3 years ago
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