Answer:
Decision on the margins
Explanation:
Pool time seems to be having a greater effect at the moment, it makes sense for his to spend a bit more time in the pool and a bit less time on the bike.
However, this does not mean that it makes sense for her to spend all his time in the pool and no time on the bike. If he cut out all training on the bike, the value of a little bit of bike training might be higher than the value of the last hour of pool training. Dimitri does not treat biking versus swimming as an all-or-nothing decision. He makes small changes at the margin in the number of hours spent training for each activity.
Also they both realise that his time is fixed (20hrs) and anytime he wants to spend extra on one activit, is time he cannot spend on another (opportunity cost).
They are both trying to improve Dimitri's total time (exploiting opportunities to makes themselves better off).
An assumption that Dimitri realises that as he spends more time in the pool improving his swim time, his run and cycle times will suffer. As he swims more, his improvement is likely to slow down, while spending less time on cycling and running will cost him progressively more in terms of time.
Conclusion Dimitri is looking at the margins. His wife on the other hand, is not, she is ignoring the interaction, may be forgetting the decreasing improvements in swim and increasing deterioration in the other 2 legs.
Answer:
Total overhead cash disbursement= $155,160
Explanation:
Giving the following information:
The direct labor budget indicates that 7,500 direct labor-hours will be required in February. The variable overhead rate is $8.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $110,250 per month, which includes depreciation of $18,090.
First, we need to calculate the allocated variable overhead:
Variable overhead= 7,500*8.4= 63,000
Depreciation is not a cash disbursement:
Fixed overhead= 110,250 - 18,090= 92,160
Total overhead cash disbursement= 63,000 + 92,160= $155,160
Answer:
Virtually all of the 7 million millionaires in the United States learned how to make smart decisions by doing their homework.
Answer: Option 7.
Explanation:
Answer: They are both right.
Explanation:
Firms in every market will always maximise profit where their Marginal Revenue equals Marginal Cost because at this point, resources are being fully utilized. This is therefore no different in a Perfectly competitive market so Skip is correct.
Peggy is also correct however because in a Perfectly Competitive market, the demand curve is perfectly elastic. This creates a situation where the Price, Marginal Revenue and Average Revenue are all the same and represent the demand curve as well.
With the Price being the same as the Marginal Revenue in a Perfectly competitive firm, that means that where the Price equals Marginal Cost is where the Marginal Revenue equals Marginal Cost as well so indeed perfectly competitive firms maximize profit where price equals marginal cost.
