Solution :
a). Bundles 
= U ( _____ , 2), lie on the same indifference curve. Suppose missing numbers is x.
So, 
(40 x 5) + (2 x 5) = 50x + (2 x 2)
210 - 4 = 5x
So Alexander has 
apples and 
bananas. The indifference curve though also include bundle.
Therefore, (41.2, 2)
b). 
= 0.4
So Alexander has apples and bananas with this bundle. Alexander would like to give up 
unit apples for a banana.
Answer:
$45
Explanation:
A surplus is when income exceeds expenses.
One year has 52 weeks. If one week was unpaid leave, then payments were received for 51 weeks.
Average payments per week = $615
Total earning per week =$615 x 51
=$31,365
The total expenses for the year were $31,320. The surplus amount will be income minus expenses
= $31,365 - $31,320
=$45
Answer:
While taking a capital budgeting decision of source of fund, or the capital project to be chosen, we sometimes use Payback Period
It is defined as the tenure in which the cash flows will realize the cost of project, that is the period in which the entire cost will be paid back.
This provides the information regarding the time after which the project will be profitable, or the time at which it will reach break even.
The payback uses the criteria that if the payback period calculated is less than life of project it shall be accepted, in case it is equal to life of project then there will be no profit no loss, and in case payback is higher than life of project then there will be loss.
Answer: A. increases with the number of H consumers.
Explanation: If all type H customers are currently purchasing the product, it means that its customer base is large and significant enough and as such the firm would prefer to sell all of its product to H, and also do to the fact that there is only so much supply that a firm can provide. But, fewer quantities of goods would remain for L if more and more goods are sold to H. Due to this lower quantity supplied to the L customer base, it then means that the firm can set the price higher for L. This is because at a higher price, quantity demanded reduces (which is expected for L) and it can therefore maintain supply to H which has more customers.
THE CORRECT IS ANSWER IS WITHOUT A DOUBT b - Extinguished
