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Alexus [3.1K]
3 years ago
6

Suppose that Ms. Thomson is currently exhausting her money income by purchasing 10 units of A and 8 units of B at prices of $2 a

nd $4, respectively. The marginal utility of the last units of A and B are 16 and 24, respectively. These data suggest that Ms. Thomson _________.
Business
1 answer:
svlad2 [7]3 years ago
6 0

Answer:

These data suggest that Ms. Thomson should buy less of B and more of A.

Explanation: When comparing the marginal utility of two products, it is advised that a consumer should buy more of the product that give them the highest marginal utility per unit money spent on such a product.

What this basically means is this, for a consumer to maximize their utility, they should spend more on products that yield the highest marginal utility per unit money.

Therefore in the scenario given above, we will calculate to see which product yields the highest marginal utility.

For product A, the marginal utility per dollar is 16/2 = 8.

For product B, the marginal utility per dollar is 24/4 = 6.

We can now see that Product A has this higher marginal utility per dollar, and therefore, more of this product should be consumed and less of Product B should be consumed.

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Durango, Inc. purchased a parcel of land for $450,000. It paid attorney fees of $3,000 to verify title to the land. In addition,
Crank

Answer:

D. $460,500

Explanation:

Given that

Cost of parcel of land = 450000

Legal fees = 3000

Broker's fees = 7500

Therefore,

Amount recorded as cost of parcel of land is

Cost of parcel of land + legal fees + brokers fee

= 450000 + 3000 + 7500

= $460,500

When purchasing land, fees like commissions, legal fees, bank fees, title fees and other expenses added before the land can be used are considered as part of the land's cost. Hence the answer.

8 0
3 years ago
Read 2 more answers
The most efficient way to ensure that producers are responsible for products is through
forsale [732]

Answer:

labeling

Explanation:

7 0
3 years ago
The shift of population from rural to urban areas in countries such as india helps global marketers by
Vedmedyk [2.9K]

Answer:

Letter b is correct.<u> Simplifying the supply chain needed to make goods and services available.</u>

Explanation:

India is the second most populous country in the world, and its economy has grown significantly, there is an increase in the industrial segment and foreign investment in the country, which is increasingly growing due to the large amount of cheap labor available and the country's large consumer market.

Therefore, when the population changes from rural to urban areas, global traders present in India benefit from the greater ease of simplifying the supply chain necessary to provide goods and services organized with automation and an integrated logistics for products to reach the consumer in place and at the right time.

5 0
3 years ago
Economists use gross national product (GNP) to measure ___
rusak2 [61]

Economists use the gross national product (GNP) to measure <u>the output of a nation’s citizens, regardless of where they are. </u>

<h3>Further explanation </h3>

Gross National Product or GNP measures the total output produced by a country's residents, regardless of where they are. Therefore, any output produced by foreign residents within the country must be excluded in calculations of GNP, while any output produced by the country's residents outside of the country must be counted.

Gross national product calculates by adding these factors below:

<h3>Consumption + Government Expenditures + Investments + Exports + Foreign Production   </h3>

Another important economic measure is Gross Domestic Product (GDP). GDP measures the total output produced in the country, regardless of who they are. GDP is the most widely used to measure a country's economic activity. The difference between GNP and GDP may indicate that a country is more engaged in international trade. The larger the difference between a country's GNP and GDP, the greater international activities.

<h3>Learn more </h3>

Gross National product brainly.com/question/1086262

GNP and GDP brainly.com/question/1228512

GNP vs GDP brainly.com/question/853464

Keywords: GNP, Gross National Product, GDP, Gross Domestic Product, International trade

6 0
4 years ago
Read 2 more answers
By tying the salaries of top corporate managers to the price of the corporation's stock, corporations hope to avoid:
Serjik [45]

Answer:

the principal-agent problem

Explanation:

In the case when there is a tied of the top corporate managers salary with the price of the corporation stock so here the corporation should avoid the principal agent problem as it deals with the conflict with respect to the priorities that lies between the person and the representative.

So the above should be the answer

4 0
3 years ago
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