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Lelu [443]
3 years ago
8

Assume that product Alpha and product Beta are both priced at $1 per unit and that Ellie has $20 to spend on Alpha and Beta. She

buys 8 units of Alpha and 12 units of Beta. The marginal utility of Alpha is 40 and the marginal utility of Beta is 20. This indicates that:
A.Ellie should make no change in consumption
B.Given another dollar, Ellie should buy an additional unit of Beta
C.In order to maximize utility, Ellie should buy more of Beta and less of Alpha
D.In order to maximize utility, Ellie should buy more of Alpha and less of Beta
Business
1 answer:
eimsori [14]3 years ago
3 0

Answer:

D) In order to maximize utility, Ellie should buy more of Alpha and less of Beta

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Stephen plans to purchase a car 5 years from now. The car will cost $43,011 at that time. Assume that Stephen can earn 7.11 perc
olga nikolaevna [1]

Answer:

$30,174.74

Explanation:

The computation of present value is shown below:-

Future value = Present value × (1 + Rate of interest ÷ 1200)^12 × time period

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= $30,174.74

Therefore for computing the present value we simply applied the above formula.

We also attached the spreadsheet for better understanding

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