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rusak2 [61]
2 years ago
11

A consumer currently spends a given budget on two goods, X and Y, in such quantities that the marginal utility of X is 10 and th

e marginal utility of Y is 8. The unit priceof X is $5 and the unit price of Y is $2. The utility-maximizing rule suggests that this consumer should __________.a. Increase consumption of product X and decrease consumption of product Y.b. Increase consumption of product X and increase consumption of product Y.c. Increase consumption of product Y and decrease consumption of product X.d. Stick with the current consumption mix because it yields maximum utility.
Business
1 answer:
sasho [114]2 years ago
8 0

Answer:

The correct answer is option c.

Explanation:

According to the utility-maximizing rule, a consumer is able to maximize utility through the consumption of two commodities if the ratio of marginal utility derived from the consumption of last unit and the price of the product is the same for both the goods.  

This implies that the marginal utility of the last dollar spent on the consumption of both goods is the asame.  

Here, the marginal utility of good X is 10 and the marginal utility of good Y is 8.  

The price of good X is $5 and the price of good Y is $2.  

The marginal utility of last dollar spent on good X is

= \frac{MUx}{Px}

= \frac{10}{5}

= 2

The marginal utility of last dollar spent on good Y is

= \frac{MUy}{Py}

= \frac{8}{2}

= 4

Since the marginal utility of last dollar spent is greater for good Y and smaller for good X, so to equate both, the consumer should consume more of good Y and less of good X.

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Following is the stockholder's equity section of Magnificent Molding, Inc. at December 31, 2016: Stockholders' Equity December 3
Novosadov [1.4K]

The treasury stock of Magnificent Molding was purchased by the stockholders at an average cost of $0.65 per share.

<h3>What is the average cost?</h3>

The cost which is derived from the division of the total costs by the number of units of such stocks is known as the average cost of the stocks. Using the given information, further computation can be made as below,

Par Value of stocks = $60,000; Further Paid-Up Capital = $135,000. Therefore, the total value will be $(60,000+135,000)=$195,000. The total number of shares will be 300,000.

Solving further,

\rm Average\ Cost= \dfrac{Total\ Cost}{No\ of\ Shares}\\\\\rm Average\ Cost= \dfrac{195000}{300000}\\\\\rm Average\ Cost=\$0.65

Hence, the average cost of treasury stock purchased by the shareholders of Magnificent Moldings Inc. is calculated above as $0.65 per share.

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7 0
1 year ago
Indicate by how much net income in the income statement is higher or lower if the adjustment is not recorded. (Do not round inte
oee [108]

Answer:

1. If the depreciation is not recorded, expenses will be overstated. Net income will therefore be higher by the depreciation amount of $5,400.

2. One June 30, $34,000 was loaned out. Interest is 7%. This interest needs to be apportioned to 6 months in the year as interest revenue:

= [(7% * 34,000) / 12] * 6 months

= $‭1,190‬

If this is not recorded, interest revenue will not be recorded which means that Net income will be lower by $1,190.

3. This was for one year yet it was received on October 1. 3 months of the amount will have to be accounted for in the current period.

= (9,600/12) * 3

= $2,400

There must be revenue recognized of $2,400. If it is not recognized, Net income will be lower by $2,400.

In total, Net income will be higher (lower) by:

= 5,400 - 1,190 - 2,400

= $1,810

Higher by $1,810.

4 0
2 years ago
Assume a two-country, two-good, and two inputs model. Let the two countries in this model be the United States and the Rest of t
mamaluj [8]

Answer: export steel and import wheat

Explanation:

According to the Heckscher-Ohlin model, a country should export the foods and services that it can produce in abundance and also produce efficiently while it imports the one that is less efficiently produced of the two goods being compared.

In this scenario, the two countries in this model are the United States and the Rest of the World; the two goods being produced by each of the countries are steel and wheat; the two factors of production used in producing the goods in each country are capital and land.

Since the United States is capital-abundant and steel production is capital-intensive, this mean that the United States can produce steel more efficiently and in abundance. Therefore, U.S should produce steel and export to other countries while it buys wheat from the rest of the world.

5 0
3 years ago
when modifying commercial buildings to meet accessibility requirements, owners should focus their attention on these four areas:
rusak2 [61]

when modifying commercial to meet accessibility requirements, owners should focus their attention on these four areas:

  • Providing an accessible approach and entrance.
  • The first area of focus is accessible approach and entrance.
  • This can include ramps instead of stairways,
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1 : a commonly roofed and walled shape built for everlasting use (as for a dwelling) 2 : the art or enterprise of assembling substances right into a shape. Synonyms instance Sentences terms Containing constructing analyze extra approximate building.

A building is a structure that has a roof and walls, for instance, a residence or a factory. They were on the top floor of the building. Crowds amassed across the Parliament building. Synonyms: shape, house, production, living [formal, literary] greater Synonyms of constructing.

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3 0
1 year ago
Employees feel that Sheryl ___________________ because she is direct and truthful about what they need to do and how they can im
babymother [125]

Answer:

Explanation:

✔d. communicates with candor

5 0
2 years ago
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