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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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Answer:

b.(Actual Price × Actual Quantity) – (Standard Price × Actual Quantity)

Explanation:

The material price variance shows how favourable or otherwise the  actual material price is compared to the standard price. Where the actual material price is higher than the standard price, it results in an unfavorable variance and when the standard price is higher than the actual price, it results in a favourable variance.

The formula for the material price variance

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