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bezimeni [28]
3 years ago
11

An interior solution to a consumer's utility maximization problem implies which of the following:A. consuming optimal amounts of

all goodsB. consuming a positive amount of one good and a negative amount of the other good.C. consuming less than an optimal amount of at least one good.D. consuming negative amounts of all goods.
Business
1 answer:
Lelu [443]3 years ago
7 0

Answer:

The correct answer is A

Explanation:

Interior solution is the solution or a choice which is to be made through an agent and that could be characterized as an optimum which is located or situated at the tangency of two curves on the graph.

The utility maximization of the consumer states or defines that the consumer decide or take decision to allocate the incomes so that the last dollar amount which is spent on each and every product bought yields the same amount of the additional marginal utility.

Therefore, the interior solution to the utility maximization of the consumer problem states that the consumer consuming the optimal amounts of all the goods.

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You are 30 years old today and are considering studying for an MBA. You just received your annual salary of $50,000 and expect i
Liono4ka [1.6K]

Answer:

Yes, you should take the MBA because the NPV of taking the MBA is positive.

Explanation:

the total economic costs of taking the MBA program include the lost wages + the costs of taking the MBA and any interest you could have earned by investing it on something else = ($50,000 x 1.03) + ($50,000 x 1.03²) + (2 x $30,000 x 1.08) = $51,500 + $53,045 + $64,800 = $169,345

the present value of your total economic costs:

$51,500/1.08 + $53,045/1.08² + $32,400/1.08 + $32,400/1.08² = $47,685.19 + $45,477.54 + $30,000 + $27,777.78 = $150,940.51

if you continued to work, your salary at year 3 would be $54,636.35 and it would continue to increase by 3% every year. The salary that you can earn with an MBA is $80,000 and it will grow by 4% per year. I used an excel spreadsheet to calculate future salaries and the differential amount between them. Then I calculated the PV at the beginning of year 3 of the differential income.

The PV of the differential income today = $560,281.31 /1.08³ = $444,769.38

the NPV of taking an MBA = $444,769.38 - $150,940.51 = $293,828.87

6 0
3 years ago
What is the name for the common currency of Europe?
Alika [10]
The euro is the common currency across Europe.
7 0
3 years ago
Read 2 more answers
Presented below is selected financial information for Cullumber Company for December 31, 2022. Inventory $ 25,000 Cash paid to p
Vitek1552 [10]

Answer:

Explanation:

Basically there are three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.  

According to these above explanations

(A) Operating activities: Cash paid to suppliers 103,600 and Cash received from customers 132,100

(B) Investing activities:  Cash paid to purchase equipment $ 11,000

(C) Financing activities: Cash dividends paid 6,100, and Cash received from issuing common stock

Now the preparation of the cash flow statement is shown below:

Cash flow from operating activities:

Cash received from customers                            $132,100

Less: cash paid to suppliers                                -$103,600

Net cash flow from operating activities (A)            $28,500

Cash flow from investing activities:

Cash paid to purchase equipment                       -$ 11,000

Net cash flow from investing activities (B)             -$11,000

Cash flow from financing activities:

Cash received from issuing common stock           $21,400

Less: Cash dividends paid                                     -$6,100

Net cash flow from financing activities (C)         $15,300

Net cash increase (A+B+C)                                   $32,800

Add: Beginning cash balance                              $7,500

Ending cash balance                                            $40,300

5 0
3 years ago
Baylor Service Corp. redeemed $1,000 of gift cards that customers used to pay for services that were performed by the company. T
Nitella [24]

Answer:

B. Unearned Revenue and a credit to Service Revenue.

Explanation:

The adjusting entry is given below:

Unearned revenue $1,000

         To Service revenue $1,000

(Being service revenue is recorded)

Here unearned revenue is debited as it decreased the liabilities and credited the service revenue as it increased the revenue

Therefore the option b is correct

7 0
3 years ago
A cylindrical candle that is 15 cm high has a diameter of 8 cm. Sketch
drek231 [11]

Answer:

  • See the figure attached with the sketch of the shape.
  • Volume = 0.75m³

Explanation:

The<em> sketch </em>of the <em>shape</em> is shown on the diagram attached indicating the <em>height </em>(<em>15 cm</em>), the <em>diameter</em> (<em>8cm</em>), and the radius (4cm).

The<em> volume</em> of a <em>cylindrical </em>shape is calculated with the formula:

      Volume=\pi \times radius^2\times height

The radius is half the diameter: 8cm / 2cm = 4 cm.

To express in terms of m (meters) convert the radius and the height from cm to m:

  • 15cm × 1m/100cm = 0.15m
  • 4cm × 1m/100cm = 0.04m

Substitute in the formula and compute:

        Volume=\pi \times (0.04m)^2\times (0.15m)\\ \\ Volume=0.75m^3

6 0
3 years ago
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