1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Fudgin [204]
3 years ago
11

Michael is maximizing utility by consuming three colas at $3 a piece and four hot dogs. The last cola gave him 300 units of util

ity, and the last hot dog gave him 500 units of utility. The price of each hot dog is: A. $4.00. B. $3.00. C. $5.00. D. $2.50.
Business
1 answer:
marusya05 [52]3 years ago
5 0

Answer:

C. $5

Explanation:

Marginal utility is the benefit gained from consuming an additional unit of a product or service.

According to the question, Michael is maximizing utility when Marginal Utility / Price of colas is equal to Marginal Utility / Price of hotdogs. Marginal utility can thus be found by solving the following equation for X (the price of hot dog)

MU/P of Colas = MU/P of hot dogs

300/3 = 500/X

3/300 = X/500

X = (3/300) x 500

X = 0.01 x 500

X = 5

Hence, the price of each hot dog is $5.

You might be interested in
On January 10, 2017, a man in Lebanon, Virginia, frustrated with the DMV bureaucracy, paid his DMV bill with 300,000 pennies tha
4vir4ik [10]

Answer:

the requirements are missing, so I looked for them:

  • a. Money supply.
  • b. Deposits.
  • c. Total reserves.
  • d. Excess reserves.

a. $0

the coins are part of M1 money supply already, so it will not change it.

b. $3,000.

the DMV should deposit the pennies in their account account, therefore, total bank deposits will increase by 300,000¢ /100 = $3,000

c. $3,000

since bank deposits increase by $3,000, total reserves also increase by $3,000

d. $2,790

excess reserves = total reserves - required reserve ratio = $3,000 - ($3,000 x 7%) = $2,790

3 0
3 years ago
Peter's Pencils is a perfectly competitive company producing pencils. Suppose Peter is producing 1,000 pencils an hour. If the t
kramer

Answer:

Peter is maximizing his profit and is making an economic profit.

Explanation:

Peter's Pencils is a pencil producing firm in a perfectly competitive firm.

It produces 1,000 pencils an hour.

The total cost of producing 1,000 pencils is $500.

The market price of each pencil is $2.

The marginal cost of producing the last unit of a pencil at this point is $2.  

An individual firm in a perfectly competitive market faces a horizontal line demand curve which also represents the average revenue and marginal revenue.

This means that the marginal revenue earned from the 1,000th pencil is $2.  

The marginal revenue is equal to marginal cost, this implies that the firm is maximizing profits.

The average total cost of the firm is  

= \frac{TC}{Q}

= \frac{500}{1,000}

= $0.5

The average total cost is $0.5 which is lower than the price. This means that the firm is earning economic profits.

6 0
3 years ago
"Evan lives in an apartment building. The land and structures are owned by a corporation, with one mortgage loan covering the en
julsineya [31]

Answer:

co-operative ownership

Explanation:

Cooperative ownership is an apartment ownership  is the process where by a buyer receives shares of stock in the building corporation and a lease of the apartment being sold as the case of Mr Evan.

5 0
3 years ago
A ______ establishes a company's financial and strategic objectives, and provides a set of guidelines for achieving the desired
inysia [295]

Answer:

strategic plan

Explanation:

In Business management, a strategy can be defined as a set of guiding principles, actions and decisions that an organization combines so as to achieve its business goals, attract customers and possess a competitive advantage over its rivals in the industry.

Typically, to formulate strategies that are well aligned with the mission of an organization or business firm, some of the activities that needs to be performed includes the following;

1. Knowing your core competencies: this involves identifying your strengths such as knowledge, technology, underlying skill, experience, ability or process that enables you to perform exceptionally and provide a unique set of products or services that meets the needs of your customers.

2. Assessment of the organization's internal strengths and weaknesses: it gives an organization certain advantages, edge and disadvantages in meeting the needs of various customers by analyzing their strengths, weaknesses, opportunities and threats (SWOT).

3. Examination of the organization's external environment: this involves examining and identifying all the factors outside of an organization that affects its performance such as customers, government policies, competitors etc.

4. Analyze your competitors: organization should ensure they are always a step ahead of the their competitors in the industry.

In conclusion, a business strategy or strategic plan sets the overall direction for an organization or business because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan.

8 0
3 years ago
The right to trade an investment over a certain period of time is called a(n):
Sloan [31]
The right to trade in investment over a certain period of time is called C. Option.
3 0
3 years ago
Other questions:
  • If Robert wishes to cash out his annuity at age 70 after having it for over 40 years, what should he know about prior to doing i
    15·1 answer
  • Personal values and work values cannot be related. Please select the best answer from the choices provided T F
    10·2 answers
  • Mica buys "Nature," a movie, through Open View, an online entertainment vendor. Before completing the purchase and downloading "
    6·1 answer
  • Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow. For the year, (1) a
    14·1 answer
  • Fritters, a fast food restaurant chain, known for its quick meals encountered an instance where a customer had blamed its food f
    14·1 answer
  • At age 55, Ellen separated from service with her former employer. She rolled over $19,000, the entire balance of her 401(k), int
    10·1 answer
  • On March 3, Cobra Inc. purchased a desk for $300 on account. On March 22, Cobra purchased another desk for $390 also on account,
    10·1 answer
  • Why is good judgement important to making budgeting decisions
    14·2 answers
  • _____ create computer programs by using their knowledge of computer science, math, and other disciplines. Select the choice that
    9·1 answer
  • Annual dividends of ATTA Corp grew from $0.96 in 2005 to $1.76 in 2017. What was the annual growth rate
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!