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
kaheart [24]
3 years ago
8

According to the inequality, the marginal utility per dollar spent on good X is less than the marginal utility per dollar spent

on good Y. According to the rule of equal marginal utility per dollar spent, what can a consumer do to increase total utility for a given budget from consumption of goods X and Y?
Business
1 answer:
polet [3.4K]3 years ago
8 0

Answer:

The answer is: Consume more good Y and less good X.

Explanation:

The marginal utility of good Y is greater than the marginal utility of good X. This means that an extra unit consumed of good Y will give the consumer a grater satisfaction than consuming an extra unit of good X. So if the consumer wants to increase his total utility (satisfaction) he should buy more units of good Y.

You might be interested in
Along any downward sloping straight-line demand curve: Group of answer choices both the price elasticity and slope are constant.
vitfil [10]

Answer:

the price elasticity varies, but the slope is constant

Explanation:

The demand curve is a curve that shows the relationship between price and quantity demanded. The demand curve is negatively sloped because the higher the price, the lower the quantity demanded. This is in line with the law of demand.

According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

At the midpoint of the demand curve, demand is usually unit elastic. Above the midpoint of the demand curve, demand is elastic and blow the midpoint, demand is inelastic

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price  

Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price  

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.  

Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases  

Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.

8 0
3 years ago
The Stanton Stationery Shoppe wants to acquire The Carlysle Card Gallery for $450,000. Stanton expects the merger to provide inc
ra1l [238]

Question:

The Stanton Stationery Shoppe wants to acquire The Carlysle Card Gallery for $450,000. Stanton expects the merger to provide incremental earnings of about $70,000 a year for 10 years. Carol Stanton has calculated the marginal cost of capital for this investment to be 8%. Conduct a capital budgeting analysis to determine whether she should purchase The Carlysle Card Gallery.

Answer:

Capital Budgeting Analysis is a process of evaluating how we invest in capital assets; i.e. assets that provide cash flow benefits for more than one year.

An organization has to take many decisions regarding the expansion of business and investment. To do that, they will require the help of NPV method and base its decision on the same.

Net present value is used in Capital budgeting to analyze the profitability of a project or investment. It is calculated by taking the difference between the present value of cash inflows and present value of cash outflows over a period of time.

As the name suggests, net present value is nothing but net off of the present value of cash inflows and outflows by discounting the flows at a specified rate.

From the question the following are given:

  1. Capital Expenditure = $450,000
  2. Useful life of expenditure = 10 years
  3. Annual return from expenditure = $70,000
  4. Marginal cost of Capital = 8%

Step 1:                                  

It's formula is given as:

Formula for NPV

NPV = (Cash flows)/( 1+r)i

<em>Where</em>

i- Initial Investment

Cash flows= Cash flows in the time period

r  = Discount rate

i = time period

Computing with a spreadsheet, the Net Present Value of the Investment is given at $ 19,706.

Kindly see attached spreadsheet.

Judgement: Since the NPV is positive the investment is profitable and hence Nice Ltd can go ahead with the expansion.

Cheers!

7 0
3 years ago
The lack of competition within a monopoly means that
nexus9112 [7]
The company could make the prices as high as they want. This is also means the company basically rules the business.
5 0
3 years ago
Read 2 more answers
Metzler Communications designs and programs a website for a local business. Metzler charges $33,000 for the project, and the loc
Grace [21]

Answer and Explanation:

1. The Journal entry is shown below:-

Notes receivable Dr, $33,000

        To Sales revenue $33,000

(Being sales is recorded)

2. The computation of interest is shown below:-

Interest = $33,000 × 4% × 6 ÷ 12

= $660

3. The Journal entry is shown below:-

Cash Dr, $33,660

       To Interest income $660

       To Notes receivable $33,000

(Being collection of notes receivable is recorded)

3 0
3 years ago
The Perfect Haircut: Consumers' Search Process
konstantin123 [22]

Answer:

Explanation:

✓Performance Risk

1)Could Damage Career

2)All the same

✓Financial Risk ( risks that could be attributed to finance, i.e money)

1)Tight budget

2)Expensive Service

✓Psychological Risk

1)Unimportant

2)Personal Image

✓Internal vs External ( ways to get access to information)

1)Salon of Convenience

2)Salon of Choice

✓Benefits vs Costs

1)Worth the Money

2)Effortless

5 0
3 years ago
Other questions:
  • The Atlantic Division of Start Production Company reported the following results for 2020: Sales $5,500,000 Variable Costs $2,20
    9·1 answer
  • Identify two advantages of dollar-value lifo compared with unit lifo.
    6·1 answer
  • "A theater sells a subscription series that allows patrons to attend all 8 of its productions that occur monthly from October th
    11·1 answer
  • A useful economic model a. deals only with possibilities that actually occurred. b. will avoid conclusions that have public poli
    14·1 answer
  • How many people lost their jobs when the minimum wage increased from $12 to $18?
    8·2 answers
  • The world’s poor are disproportionately affected by environmental degradation and lack of access to clean, affordable energy ser
    15·2 answers
  • Define economic profit. Explain how economic profit is different than accounting profit. Why is it important for economists to m
    14·1 answer
  • Information technology (IT) consists of all the hardware that a firm needs to use in order to achieve its business objectives, w
    11·1 answer
  • Rick works off commission. He earns 10 percent of all manufacturing equipment he sells. If he made a sale of $9,000, how much wa
    6·1 answer
  • CMS Energy Corp has an operating cycle of 157 days. The firm's days' sales in inventory is 87 days. How much does the firm have
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!