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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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The following information pertains to Blum Company's defined benefit pension plan: PBO beginning balance: $100,000; current year
iris [78.8K]

Answer:

The ending balance=$115,000

Explanation:

Given Data::

PBO beginning balance=$100,000

Current year service cost=$10,000

Interest cost= $8,000

Actuarial loss=$3,000

Employer contributions to plan=$12,000

Payments to retirees=$6,000

Required:

The ending balance of the company's PBO=?

Solution:

The ending balance=Beginning balance+Current year service cost+Interest cost+Actuarial loss-Payments to retirees

The ending balance=$100,000+$10,000+ $8,000+$3,000-$6,000

The ending balance=$115,000

8 0
4 years ago
douglas pays selena $43,300 for her 30% interest in a partnership with net assets of $127,900. following this transaction, dougl
Katarina [22]

Selena receives $43,300 from Douglas for her 30% stake in a partnership with $127,900 in net assets. After this transaction, the capital account of Douglas should have a account balance of $38,370.

Douglas's Capital account balance

= Net assets x30%

= $127,900 x 30%

= $31,875

Therefore, Douglas's capital account should have a credit balance of $38,370

A financial repository's account balance represents the amount of money there is at the end of the current accounting period. It is the sum net assets of the balance carried over from the previous month and the net difference between the credits and debits that have been recorded during any given accounting cycle.

The amount due or the net debt may be shown in an account balance. The former is frequently depicted in financial accounts that include net assets recurring bills, like those for utilities or gym memberships. The latter, on the other hand, is reflected in accounts with negative cash balances, such as bank overdrafts.

Learn more about account balance here

brainly.com/question/28699225

#SPJ4

4 0
1 year ago
A firm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. Because interest is tax deductible, t
gayaneshka [121]

Answer:

The blank spaces are not easy to spot here but I found a similar question with their correct locations. The answers for each blank will be as follows respectively;

new; new ; after-tax cost of debt ; after-tax cost of debt ; after-tax cashflows; new debt; not outstanding debt ; irrelevant ;new capital; yield to maturity; coupon rate; yield to maturity; long term debt ; long-term projects.

Explanation:

The cost of new debt is the before-tax cost of debt and does not reflect the cost of outstanding debt. Interest paid on the new debt is tax-deductible and that's why you calculate the after-tax cost of debt to use in the firms WACC formula. Since the main goal of a business managers is to increase a firm value, you use the after tax cashflows to valuate the business. Additionally, the cost at which the firm borrowed in the past is irrelevant in WACC calculation because the cost we need to know is of the new capital.

7 0
3 years ago
Bob's big burgers n' shakes restaurant brings a suit, seeking a remedy at law. a remedy at law is
pshichka [43]
A remedy at law is monetary damages
5 0
3 years ago
Assume that a family spends 35 percent of its income on housing, 20 percent on travel-related expenses, 10 percent on utilities,
hoa [83]

Answer:

The correct answer is housing.

Explanation:

A family spends 35 percent of its income on housing, 20 percent on travel-related expenses, 10 percent on utilities, 25 percent on health care, and 5 percent on miscellaneous items.

The item which has the largest share in the budget will be most responsive to change in the price. In other words, we can say that the item that has the largest share in the budget will be most price elastic.

This is because a change in the price of such a product will cause a significant impact on the consumer's budget.

Here, housing has the highest share i.e. 35% in the budget so it will be most price elastic.

7 0
3 years ago
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