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love history [14]
3 years ago
12

A consumer has two basic choices in making a trip: rent a car for $30.00 a day and spend two days of travel to the destination,

or spend $400 for an airplane ticket and fly to the destination in two hours. The marginal utilities of the car rental and the airline ticket are the same. The consumer values time at $5 an hour. The rational consumer will most likely
Business
1 answer:
Ber [7]3 years ago
6 0

Answer:

The answer is to rent a car.

Explanation:

Value per hour = $5

24 hours make a day

Value for a day(24 hours) = $120

Value for two days(48 hours) = $240

For renting a car:

Car is $30/ day

So car will be $60($30 x 2) for 2 days.

Value for two days(48 hours) that he spent = $240

Therefore, total cost for the two days if he rents a car is

$60 + $240 = $300

For flight:

$400 for airplane ticket.

Two hours that he will spend is $10($5 x 2)

Therefore, total cost for taking flight is

$400 + $10

=$410

So a rational consumer will go for the lower cost which is to rent a car.

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Input costs that require an outlay of money by the firm are called _______ costs while input costs that do not require an outlay
kolbaska11 [484]

Answer: Explicit costs , Implicit cost.

Explicit Costs is an Input costs that require an outlay of money by the firm. e.g (Paying for supplies, paying workers).

Implicit Costs is an Input costs that do not require outlay of money by the firm. e.g (Could be working somewhere else and making money but giving up the money you could be making because of where you work now).

3 0
4 years ago
Concord Corporation required production for June is 212000 units. To make one unit of finished product, three pounds of direct m
alexandr1967 [171]

Answer:

The purchases of material Z should be of 656000 pounds.

Explanation:

The purchases of material Z should be such that they meet the desired closing inventory requirement of product Z along with producing enough units to meet the production requirements for the period which are left after the opening inventory has been used. Or we can also say that the purchases should be enough to meet the closing inventory and the Production requirements less the opening inventory.

Thus, purchases = Closing Inventory + Total Production Requirements - Opening inventory

The amount of material Z needed to produce 212000 units = 212000 * 3 = 636000 pounds

Purchases = 410000 + 636000 - 390000

Purchases = 656000 pounds

5 0
4 years ago
A firm has a return on equity of 12.4 percent according to the dividend growth model and a return of 18.7 percent according to t
uysha [10]

Answer:

It would be wise to use the CAPM capital cost.

Explanation:

It should use the Capital Assets Pricing Model.

The market rate is not sufficient. It is included in the CAPM calculation to asses the impact in the firm or industry beta and the free-risk rate.

The return for the dividend grows model is calculated with the current stock price and expected dividends. We can't know for sure if the stock wasn't undervalued or overrated at the moment of solving for return.

The CAPM model takes consideration of the current market interest rate, the own non-diversifiable risk of the firm and the fact of a free-risk interest rate. It is the better option

8 0
3 years ago
What is an example of E-commerce
Romashka [77]

Answer & Explanation:

E-Commerce or Electronic Commerce means buying and selling of goods, products, or services over the internet. ... The standard definition of E-commerce is a commercial transaction which is happened over the internet. Online stores like Amazon, Flipkart, Shopify, Myntra, Ebay, Quikr, Olx are examples of E-commerce websites.

8 0
4 years ago
Read 2 more answers
Which group is the primary source of financial support that benefits all wildlife species?
VMariaS [17]

The group that is the primary source of the financial support needed for wildlife species is <u>Hunters</u>.

The main source of the financial support that the nation uses to fund wildlife conservation efforts to protect various wildlife species is hunting licenses.

Hunting licenses are issued to hunters so in effect, hunters are the chief financiers for conservation efforts. This is quite peculiar and one could say that it balances out the killing of animals by hunters.

In conclusion, the answer is hunters.

Find out more about hunters at brainly.com/question/978526.

8 0
3 years ago
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