Answer:
Paul is NOT maximizing his utility.
Explanation:
Given:
MU
= Marginal utility from DVDs = 21
MU
= Marginal utility from books = 4
P = Price of DVDS = $11
P = Price of books = $1
Under the utility maximization theory for two or more goods, utility is said to be maximized by a consumer when the ratios of the marginal utility to price per unit of each good are equal to each other. For this question, this implies that when we have:
MU / P = MU / P ………………………….. (1)
Therefore, we have:
MU / P = 21 / 11 = 1.91
MU / P = 4 / 1 = 4
Since 1.91 = MU / P < MU / P = 4, this implies that these conditions are NOT consistent with equation (1). Therefore, Paul is NOT maximizing his utility.
In order to maximize his utility, Paul should consume more DVDs and consume less books until these conditions are consistent with equation (1).
Answer:
Explanation:
a). The highest point of the house was hurt. It will be made sure about under Part A . The most outrageous proportion of game plan is $120,000. The cash estimation of hardship is $10,000. In this manner, the dollar whole receivable for adversity is $10,000.
b). The damage of window of the parlor will be made sure about under Part A course of action. The cash estimation of the damages is $400. From this time forward, the dollar proportion of mishap payable is $400.
c). The damages on account of impact of water radiator will be made sure about under Part C, singular property hurt. The most outrageous proportion of hardship will be half of inclusion A. The most extraordinary proportion of consideration will be $60,000 (half of $120,000). In any case, the genuine cash estimation of the incident is $2,000. In this way, the dollar proportion of setback will be $2,000
Answer:
The correct answer is:
0.50 (B)
Explanation:
The Lerner index is used by monopolists to measure market/monopolist power, and it is defined as the percent markup of price over marginal cost.
It is given by the formula:
Note: in a perfectly competitive market, L = 0, which makes Price = Marginal cost in the equation above. But in a competitive market, it is always the case that L ≥ 0
Answer:
Owners are not required to pay it to foreign workers.
Explanation:
Owners must pay it to any worker regardless of its nationality.
Answer:B. if transaction costs are low, private bargaining will result in an efficient solution to the problem of externalities.
Explanation:
The coarse theorem:
If there is a conflict between parties this will lead to an effecient results irrespective of who won the right to the property as long as the transaction cost related to the price negotiation is insignificant.
