Which kind of decisions involving resources must producers of goods and services make? ECONOMICS.

Toby’s current marginal utility from consuming peanuts is 100 utils per ounce and his marginal utility from consuming cashews is

Ne4ueva [31]

Answer:

Toby is not maximizing his utility because MUp/Pp > MUc/Pc

Explanation:

given data

marginal utility consuming peanuts = 100 utils per ounce

marginal utility consuming cashews = 200 utils per ounce

peanuts cost = 10 cents per ounce

cashews cost = 25 cents per ounce

solution

we know that Toby will have maximize utility when here

Marginal utility of peanut ÷ price of peanut = Marginal utility of cashew ÷ cash ..........................1

MU (p) ÷ P (p) = MU (c) ÷ P (c)

put here value

$\frac{100}{10} = \frac{200}{25}$

but here

10 > 8

so we can say Toby is not maximizing his utility because MUp/Pp > MUc/Pc

8 0

3 years ago

Read 2 more answers

West Company borrowed $36,000 on September 1, 2016 from the Valley Bank. West agreed to pay interest annually at the rate of 6%

Illusion [34]

Answer:

$720

Explanation:

Given that,

Principal = $36,000

Rate = 6% per year

Note issued by West carried an 18-month term.

Time period: 1st September to December = 4 Months

Interest expense = Principal × Rate × Time period

= 36,000 × 6% × (4 ÷ 12)

= $720

Therefore, the amount of interest expense appearing on West's 2016 income statement would be $720.

5 0

3 years ago

On January 1, Year 1, Sayers Company issued $280,000 of five-year, 6 percent bonds at 102. Interest is payable semiannually on J

mel-nik [20]

Answer:

The cash received from bond issuance is journalized as follows:

Dr Cash $285,600

Cr Bonds payable $280,000

Cr Premium on Bonds payable $5,600

The June 30 and 31 December Year 1 interest on the bonds are recorded thus:

30 June

Dr Interest expense(bal fig) $7,840

Dr Premium on bonds $560

Cr Cash $8400

31 December

Dr Interest expense(bal fig) $7,840

Dr Premium on bonds $560

Cr Cash $8400

The June 30 and 31 December Year 2 interest on the bonds are recorded thus:

30 June

Dr Interest expense(bal fig) $7,840

Dr Premium on bonds $560

Cr Cash $8400

31 December

Dr Interest expense(bal fig) $7,840

Dr Premium on bonds $560

Cr Cash $8400

Explanation:

The amount realized from the bond is calculated thus:

$280,000*102%=$285,600

Premium on bond=Bonds proceeds-par value

=$285,600-$280,000

=$5,600

Semi-annual amortization of bond premium=$5,600/5*6/12

=$560

Semi-annual interest payment=$280,000*6%*6/12

=$8,400

5 0

3 years ago

When there is a technological advance in the ice cream industry, consumer surplus in that market will?

Nina [5.8K]

When there is a technological advance in the ice cream industry, consumer surplus in that market will increase.

Technology is the result of accumulated knowledge and the application of skills, methods, and processes used in industrial production and scientific research. Technology is embedded in the operation of all mechanical and electronic devices, with or without detailed knowledge of their function, for the intended purpose of an organization. The technology of society consists of so-called systems. A system works by taking input, modifying that input through what is called a process, and producing a result that achieves the intended purpose of the system.

The earliest and simplest form of technology is the development of knowledge leading to the application of basic tools. The prehistoric invention of carved stone tools and the discovery of ways to control fire increased the food sources available to humans. This led to mobile technologies that helped exchange information and raw materials more quickly. Humanity then proceeded to develop the printing press, telephones, computers, and the Internet.

Learn more about technology here: brainly.com/question/25110079

#SPJ4

6 0

2 years ago

How is price a language for buyers and sellers?

ZanzabumX [31]

Prices communicate info and provide incentives to buyers and sellers. And sometimes there negotiating involved. High prices are signals to producers to produce more and buyers to buy less. Low prices are signals for producers to produce less and for buyers to buy more.

3 0

3 years ago