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Vsevolod [243]
4 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]4 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.

You might be interested in
Daffodil Company produces two products, Flower and Planter. Flower is a high-volume item totaling 20,000 units annually. Planter
Nastasia [14]

Answer:

Flower: $500,000

Planter: $300,000

Explanation:

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

We distribute the expected cost over the cost driver:

Expected manufacturing overhead: 800,000

Flowe 20,000   1 hour

Planter 6,000    2 hour

Expected direct labor (20,000 + 12,000) 32,000

800,000 / 32,000 = 25

then we aply the rate to the labor hours of each product

Flower: 20,000 x 25 = 500,000

Planter: 12,000 x 25 =  300,000

7 0
3 years ago
Kyle started a new job part of the way through last month that pays $7 per hour. he began the month making $5 per hour at his ol
jarptica [38.1K]
Let's call
 x = number of hours worked by Kyle in his old job.
 y = number of hours worked by Kyle in his new job.
 Writing the system of equations:
 x + y = 54
 5x + 7y = 338
 Solving the system of equations:
 5 (54-y) + 7y = 338
 270-5y + 7y = 338
 2y = 338-270
 y = 68/2 = 34
 Therefore, Kyle worked 34 hours in his new job.

7 0
4 years ago
Louise purchased a disability policy when her salary was $4,000 a month. Later, she lost that job and her salary was reduced to
kondaur [170]

Answer:

$3,500

Explanation:

This is because every Health and Disability Income Policy express the conditions and provisions for continuation of the contract on the new income level.

3 0
3 years ago
In the luxury cruise industry, the small cruise lines Tropics Inc. and Sunset Inc. merged to form TropicalSunset Inc. After the
Anarel [89]

Answer:

2. Competitive rivalry is strongest between firms that are within the same strategic group.

Explanation:

Now, the new company is in the same strategic group (grand companies) than Pacifico and West Winds thus, they feel threatened by them. Before they were small firm so it wasn't profitable to make competitionagainst a small portion of the market. As tehe cut of the new company is bigger enough to justify this, these company's start to go into the market share of Tropical Sunset.

3 0
3 years ago
How are equity investments that lack significant influence adjusted? (select all that apply.)
pav-90 [236]

The equity investment that lack significant influence adjusted is Unrealized holding gain or loss is included in net income.

<h3><u>What is equity?</u></h3>
  • Equity, also known as shareholders' equity, is the sum of money that would remain in the hands of a company's shareholders after all of the company's assets have been sold and all of the debt has been settled, in the event of a liquidation.
  • It is the worth of company sales less any obligations owing by the company that were not transferred with the sale in the case of an acquisition.
  • Additionally, a company's book value may be represented through shareholder equity.
  • Equity may occasionally be given in exchange for cash.
  • Additionally, it symbolizes the proportionate ownership of a company's shares.

One of the most frequently used pieces of information by analysts to evaluate a company's financial health is equity, which can be found on a company's balance sheet.

Know more about equity with the help of the given link:

brainly.com/question/3841249

#SPJ4

6 0
2 years ago
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