The primary advantage an entrepreneur gains by leasing rather than buying facilities is

Georgina consumes only grapefruits and pineapples. Her utility function is U (x comma y )equals x to the power of 0.8 end expone

vlabodo [156]

Answer:

21

Explanation:

Given that:

The utility function U(x, y) = $x^{0.8} y^{0.2}$

The budget line income is:

105=4x +3y

The equation MRTS is:

$\dfrac{MU_x}{MU_y } =\dfrac{ Px}{Py}$

where;

$MU_x(x,y) = 0.8 \times x^{0.8-1}\times y^{0.2} \\ \\ \implies 0.8 \times x^{-0.2}\times y^{0.2}$

$MU_y(x,y) = 0.2 \times x^{0.8}\times y^{0.2-1} \\ \\ \implies 0.8 \times x^{0.8}\times y^{-0.8}$

and:

$P_y= 3$

$P_x = 4$

∴

Using the equation MRTS:

$\dfrac{MU_x}{MU_y } =\dfrac{ Px}{Py}$

$\dfrac{ 0.8 \times x^{-0.2}\times y^{0.2} }{0.8 \times x^{0.8}\times y^{-0.8}} = \dfrac{4}{3}$

$\dfrac{4y }{x} = \dfrac{4}{3}$

4x = 12y

x = 12y/4

x = 3y

Replacing the value of x into the budget line income, we have:

105 = 4x + 3y

105 = 4(3y) + 3y

105 = 12y + 3y

105 = 15y

y = 105/15

y = 7

Then, from x = 3y

x = 3(7)

x = 21

Thus, she will consume 21 gapefruits

5 0

2 years ago

Falcon Co. produces a single product. Its normal selling price is $29 per unit. The variable costs are $15 per unit. Fixed costs

Elan Coil [88]

Answer:

$11,760

Explanation:

The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income/profit.

Without the new offer

Profit = 5000($29 - $15) - $20,900

= $70,000 - $20,900

= $49,100

For the new order a variable selling cost of $2 per unit would be eliminated, the contribution of the order will be

= 1680($20 - $15 + $2)

= 1680 * $7

= $11,760

This is the differential effect on profit.

5 0

3 years ago

JK Company can sell all of the plush and supreme products it can produce, but it has limited production capacity. It can produce

shepuryov [24]

Answer:

$3,418,800

Explanation:

Contribution margin per hour:

Plush: 4 units per hour x $231 = $924

Supreme: 2 units per hour x $317 = $634

Since contribution margin per hour from Plush is higher than Supreme, we select Plush as the most profitable sales. Hence,

Total contribution = 3,700 hours available x $924 = $3,418,800

Hope this helps!

8 0

3 years ago

Read 2 more answers

The journal entry for recording payment for the short-term lease of a fixed asset would?

wlad13 [49]

The finance lease is the journal entry can be created by debiting the lease asset account and crediting the lease liability account. The amount of lease asset or lease liability recorded in this journal entry is the fair value of total lease payments.

Because short-term leases are not capitalized, no depreciation expense on the right of use asset or finance cost on the lease liability is recognized. Payments on short-term leases are expensed by the less on a straight-line or other systematic basis.

Debit the appropriate fixed asset account and credit the capital lease liability and account with the amount.

To learn more about asset here

brainly.com/question/14826727

#SPJ4

3 0

1 year ago

Whenever real GDPLOADING... declines, nominal GDPLOADING... must also decline."

Alex_Xolod [135]

Answer:

The correct answer is option B.

Explanation:

Real GDP is the inflation-adjusted measure of economic growth. It measures the change in output level at a constant price. It measures changes in economic output.

Nominal GDP measures change in output level based on current prices. It is not an inflation-adjusted measure of economic growth.

Real GDP changes with a change in output level. While nominal GDP can change with change in either output level or price. So it is not necessary that a decline in real GDP is accompanied by a decline in nominal GDP.

8 0

3 years ago