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Vsevolod [243]
3 years ago
11

Suppose there are only two goods in the world, x and y. Assume the consumer has spent all their money so they are on their budge

t line. Holding everything else constant, if your current allocation gives you a result such that MUx/Px > MUy/Py, your consumption of good y should __ and therefore, the MUy will ___
Business
1 answer:
Paraphin [41]3 years ago
6 0

Answer:

Consumption of good y should decrease

The Marginal Utility should also decrease

Explanation:

Marginal utility of a good is the added satisfaction that a consumer gets from consuming additional units of the good.

Given the two goods x and y, and MUx/Px > MUy/Py.

The Marginal Utility Price Ratio indicates the Utility/Satisfaction derived from the last Dollars spent.

To allocate a budget efficiently, the marginal utility for each item should be equal.

A good has a higher marginal utility-price ratio is the good that the consumer should consume more of.

If the Marginal Utility-Price ratio of good x is greater than that of good y, your consumption of good y should decrease and therefore, the MUy will also decrease.

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JetBlue’s "Even More Space" initiative allowed passengers to buy seats with more legroom for a slightly higher price. The initia
8090 [49]

Answer: Upselling

Explanation:

Upselling is a customer development strategy whereby the customers are encouraged to buy an upgraded or higher end version of a particular product. Upselling therefore results in the customers spending more than what they initially planned for and this bring about increase in revenue to the company.

Therefore, the customer development strategy exemplified by JetBlue is Upselling.

7 0
3 years ago
Required information [The following information applies to the questions displayed below.] Desmond is 25 years old and he partic
MrRa [10]

Answer:

Saver's credit = $0

Explanation:

He is not entitled to any saver's credit, as he is not married and his AGI is greater than $32,000. Therefore the Saver's credit is equal to zero. Is also important to consider that Desmond is a head of a household and his AIG is between 31,126 and 48,000.

6 0
3 years ago
Read 2 more answers
Marigold corp. has 634000 shares of $10 par value common stock outstanding. during the year marigold declared a 13% stock divide
Vera_Pavlovna [14]

No. of shares outstanding before stock dividend = 634000

Price per share = $46

Stock dividend issued (shares issued) = 634000 x 13%

= 82,420

Value of stocks issued as stock dividend = 82420 x $46 = $3,791,320

No. of shares outstanding after stock dividend = 634,000 +82,420

=716420

Cash dividend = 716420 x 0.60

= 429,852

Total reduction in retained earnings = total value of dividend issued

= $3,791,320 + $429,852

= $4,221,172

3 0
3 years ago
"Harold and Maude are married and live in a common-law state. Neither has made any taxable gifts and Maude owns (holds title to)
jeyben [28]

Answer:

$5528000

Explanation:

Solution

Given that:

Now,

The 2018 estate tax exemption 11180000$ above that the estate inherited are taxed at 40%.

So,

25000000-11180000 = taxable estate 13820000$

The estate tax due= 13820000*40%

= 5528000$

Note: This is reference from Exhibit 25-1 and Exhibit 25-2.

8 0
3 years ago
1. The Sherman and Clayton Acts The Clayton Act of 1914 classifies several business practices as illegal, including price discri
labwork [276]

Answer: Antitrust law

Explanation:

The Clayton Antitrust Act of 1914, was a part of the United States antitrust law with the aim of adding further substance to the United States antitrust law regime.

The Clayton Act was to prevent anticompetitive practices. It was enacted in 1914 with the objective of strengthening Sherman Antitrust Act. When Sherman Act was enacted in 1890, the regulators realized that that the act had some weaknesses which made it impossible to prevent anti-competitive practices in businesses so the Clayton Act addressed the issue.

6 0
2 years ago
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