Answer:
II only;
An employee's compensation, which consists of a flat salary plus a commission is an example of mixed cost.
Answer:
Price elasticity of demand for Adam=0
Price elasticity of demand for Barb=1
Explanation:
Price elasticity of demand = %age change in demanded QTY / %age change in demanded price
The price is not important for Adam, and he demands a fixed quantity, hence his demand curve is vertical. A perfectly vertical demand curve is can inelastic demand curve and has price elasticity =0
The quantity is not important for Barb, and he demands a fixed price, hence his demand curve is horizontal. A perfectly horizontal demand curve is has price elasticity =1
Answer:
Total utility is the sum of marginal utilities
.
Explanation:
In the economy, utility is a measure of relative satisfaction. In other terms, it is a term that refers to the total satisfaction that a consumer experiences when consuming a good or service. Given this measure, one can speak of increasing or decreasing utility in a meaningful way and thus explain economic behavior in terms of attempts by the economic agent to increase his or her utility. Utility is often modeled as a unit influenced by the consumption of various goods and services, the possession of wealth and the enjoyment of free time. Total utility, therefore, is the sum of all the marginal utilities that compose the total accumulation of consumption of the individual.
Answer:
B. If the marginal benefit of the good is greater than the marginal cost
Explanation:
Marginal benefit is the incremental benefit derived from producing an extra unit of a good. Marginal cost is the incremental cost of producing an additional unit of the good.
When marginal benefit is greater than its marginal cost, the excess of marginal benefit over marginal cost shows that the product is beneficial to society so an extra unit of the good should be produced and consumed.
The correct answer is C,
A good is said to have an inelastic supply if the suppliers did not have any choice than producing it even though the cost of production is high and the buyers did not have any choice than buying it even though it is expensive.
No one can do without shoes, even if they are expensive, we still need to buy them.
