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4 years ago

When would a good’s total utility and marginal utility be the same?

Business

1 answer:

Triss [41]4 years ago

7 0

Answer : 

Utility is the satisfaction a person derives from the consumption of a good or service. Total utility is the total satisfaction received from consuming a given total quantity of a good or service, while marginal utility is the satisfaction gained from consuming an additional quantity of that item. Sometimes, economists like to subdivide utility into individual units that they call utils. However, because utility is subjective, meaning that it differs from person to person, and because it varies continuously, depending on the quantity consumed, an util cannot actually be measured, but is simply a heuristic device that allows economists to talk about the degree of satisfaction for a product or service.Marginal utility always declines for each successive quantity of consumption. If you like ice cream, and you eat one scoop, the first scoop will provide the greatest satisfaction. If you eat another scoop, you'll probably enjoy that also, but the satisfaction will be less than for the first. At some point, you will not want any more ice cream. The marginal utility will drop to zero and may even become negative. This illustrates the law of diminishing marginal utility. Marginal utility declines for everything, including money. Although many people want to amass great wealth, each dollar accumulated becomes worth less and less, because the marginal utility of what it can buy declines.

Declining marginal utility explains why the demand curve slopes downward as the supply quantity is increased, and why people will only consume more if the price declines, since people's willingness to pay also declines.

Marginal utility is also related to the elasticity of demand. If demand is inelastic, then the quantity demanded drops off slowly as the price increases, indicating that the marginal utility of the product or service is high; with elastic demand, demand quantity drops off sharply, indicating a low marginal utility for the product, so the consumer is not willing to pay a higher price.

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To make a decision resulting in good corporate citizenship, a business should evaluate the decision based on:

Sergio039 [100]

Answer:

All of them

Explanation:

When making decisions, a business should evaluate:

Legal implications of each decision : do our decisions comply with all applicable laws and regulation?
Public relations impact : how will the public feel about our decision?
Safety risks for consumers and employees: does it affect the safety and well being of our employees and customers?
Financial implications: does our decision benefit our business?

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4 years ago

When Patrick was talking with his customer about the new accounting system, his customer mentioned that she thought the new syst

cupoosta [38]

Answer:

The question lacks answers:

a. overcoming reservations

b. generating and qualifying leads

c. the presentation

d. the preapproach

e. follow-up

The answer is: a. overcoming reservations

The answer can be formulated as - handling objections

Explanation:

The sales presentation process usually follows the sequence:

generating and qualifying leads -> the preapproach -> the presentation -> overcoming reservations -> closing -> follow-up

The part of overcoming reservations is one of the most critical parts of the sales process, as it includes the addressing of the potential concerns a lead may have. This is the part when most salespeople end the whole process, as they are mostly not prepared to argument their sales pitch.

In this example, Patrick is confident and persistent in his efforts to emphasize the benefits of the system, even though the client expressed some concern about it. Patrick successfully overcame the client's reservations by explaining the benefits further.

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3 years ago

Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company’s most recent monthly contribution fo

nadya68 [22]

Answer:

If linen department is dropped operating income of the company will decrease.

Explanation:

That is because the cotrollable margin of the department is positive:

controllable margin = contribution margin - controllable fixed costs

$605,000-($800,000-380,000) = 185,000

That means that the Linen department helps to reduced fixed cost that are not generated by this department and that will keep existing wether the department is closed or not.

In addittion the Hardware department will loose 19% of its sales if the Linen department is closed. Thus will result in a reduction of the cntribution margin of the hardware deparment too.

Download xlsx

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3 years ago

Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2012. On that date, Paar's equipment (10-year life) has a boo

RoseWind [281]

Answer:

B) 574,000

Explanation:

Equipment book of Paar value on december 31/14 of $294,000.-

Add Kimmels equipment book value on december 31/14 of $190,00

Add original acquisition-date allocation to Kimmel´s equipment of ($400,000 - $272,000) = $128,000

Less Amortization of alloction ($128,000 / 10 years for 3 years) = (38,400)

Eqcuals consolidated equipment of $574,000

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3 years ago

A credit balance in which of the following accounts would likely indicate an error? a.Accounts Payable b.Fees Earned c.Janet Jam

maxonik [38]

Answer:

d. Salary Expense

Explanation:

Salary Expense refers to the salaries or fixed payment by an organization to it's employees. It is an expense and as per the rules of accounting, "debit all expenses and losses, credit all incomes and gains."

Salary expense represents salary which has been earned whether paid or not, as per the accrual concept of accounting.

Thus, a credit balance in Salary Expense represents a likely error since such an account is usually associated with a debit balance, being an expense.

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3 years ago