Answer:
the marginal propensity to consume in the economy is 0.7
Explanation:
The calculation of the marginal propensity to consume in the economy is given below:
As we know that
Marginal propensity to consume = Change in consumption ÷ Change in income
= 7 ÷ 10
= 0.7
Hence, the marginal propensity to consume in the economy is 0.7
Therefore the last option is correct
The same is relevant
Answer:
$21,370.1071
Explanation:
The computation of the present value of this perpetuity is shown below:
= The present value after five years + present value on the date of purchase
where,
The present value after five years is
= ($1,000) ÷ (1.04)^5
= $821.9271
And, the present value on the date of purchase is
= $821.9271 ÷ 4%
= $20,548.18
Hence, the present value of the perpetuity is
= $821,.9271 + $20,548.18
= $21,370.1071
Answer:
2) the gold rules principle
Explanation:
The gold rules principle is important because companies maximize their profits when marginal revenue = marginal costs. That is why the revenue-cost relationship is so important, because higher revenue will only generate higher profit if costs are under control.
Answer:
B. there is a perfect positive correlation between the demands for two goods.
Explanation:
Bundling is a technique of combining two or more products and selling them together as one package.
This technique is most commonly used by many companies like Microsoft, McDonald's, etc.
Sometimes, the strategy of bundling doesn't pay off in some endeavours as the companies might not make profit or not make as much profit as was originally projected.
Other times, it has paid off handsomely.
À company can decide to bundle products like a mouse, a keyboard, a USB drive and a monitor to sell as one package and not sell them individually, this is known as "pure bundling".
There is an increase in revenue when the change in value of one of the product in the bundle is equally proportional to the change in value of the other product in the bundle.
Answer:
E
Explanation:
In this question, we are told to state what the reaction of Koka and Zola will be;
Kukla and Zola both like the proposal. As according to the given opportunity cost for Kukla (3 rugs per every 4 tables) she can get 1.5 rugs for 2 tables .But with the offer made now she can get 2 rugs for giving 2 tables.
Given the opportunity cost for Zola ( 2 tables per every 3 rugs ) she must give 3 rugs for getting 2 tables. But with the offer made she can now get 2 tables for giving away only 2 rugs .
So both Kukla and Zola are happy with the offer.
