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Tcecarenko [31]
3 years ago
5

Connie the consumer frequently buys both coffee and tea at the OU Library store. Theprice of coffee is $3.00 while the price of

tea is $2.00. If we assume Connie is making optimalconsumption choices and we know she purchases positive quantities of both goods, what canwe infer about the relationship between the marginal utility Connie obtains from her lastpurchase of coffee compared to the marginal utility obtained from her last purchase of tea
Business
1 answer:
Harman [31]3 years ago
3 0

Answer / Explanation:

Before answering this question, let us understand some terms used in the narrative:

Marginal Utility: Utility in itself can be refereed to as the satisfaction derived from the consumption of a particular good or service. However, when we now becomes a marginal utility, it mean we are now paying attention to the level of change in the extra level of satisfaction derived from the particular good and service.

Optimal Consumption: This can be referred to as one of the guiding principle of consumption in an economy, it stipulates that when a consumer maximizes utility or attain maximum satisfaction, the marginal utility per amount spent must be the equal all goods and services in the same class of goods..

In summary it is a state of mind or feeling that people get a certain level of joy utility from consuming goods and service while Marginal utility is the benefit of consuming an extra unit of that product.

Now referring back to the question and answering it,

If Connie is making optimal consumer choices, the ratio of marginal utility to the price should be the same for both goods. Hence, the price of coffee is 3/2 as much and these ratios are equal and the marginal utility of coffee must be = 3/2 as high as that of tea at the quantities she is purchasing them at.

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Answer:

150,000 Shares

70$ per share

Explanation:

Stock split at a rate of 3 for 1 means that holder of every 1 share will have total 3 shares after the split (e.g. he will receive additional two shares for each share he owns). Thus Copper Grill Restaurant Corporation's total shares will increase from 50,000 to 150,000 (50,000 * 3).

Per share price will be divided by 3 to arrive at approximate value of per share after the split (210 / 3) = $70 / per share.

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4 years ago
Which one of the following statements is correct with respect to coinsurance used with commercial insurance policies? A. The rat
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Answer:

D. The 80 percent coinsurance rate is reduced when a policy requires a higher coinsurance percentage.

Explanation:

Coinsurance is the amount which is fixed cost payable by the insurance seeker in order to provide claim against the risk. The coinsurance rate is decided based on the risk nature. If the risk is high the coinsurance rate will be higher so that insurance coverage is maximum.

5 0
3 years ago
Harris Company had checks outstanding totaling $15,400 on its May bank reconciliation. In June, Harris Company issued checks tot
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The amount of outstanding checks on Harris Company's June bank reconciliation should be $42700.

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3 0
3 years ago
The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: 1. Cash bala
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Answer:

The amount should the bank report = $ 21725

Explanation:

Entries:

3.Dr  accounts payable    23375

        Cr Bank                           23375

4. Dr Bank    7500

        Cr Account receivable   7500

5. Dr Bank  900

               Cr Accounts payable 900

  (Error in check)

6. Dr Bank charges    45

              Cr Bank                45.

   (To record bank charges)

                                       

                                        Creative Design co

                                Bank Reconciliation statement

                                                                                                              $

Balance as per bank statement as Aug  -20Y6                      =  37600

<u>Adjustment:</u>

Add: Deposit in transit                                                                  = 7500

Less: Outstanding checks                                                            = (<u>23375</u>)

Adjusted balance                                                                              <u>21725</u>.

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Add: Error in check                                                                        = <u>900</u>

 Adjusted Balance                                                                           <u>21725</u>

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