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otez555 [7]
3 years ago
15

Assume MU_c and Mu_d represent the marginal utility that a consumer gets from products C and D, the respective prices of which a

re P_c and P_d. The consumer will increase his total utility from a specific money outlay by spending more on C and less on D if initially:_________. A. MU_d < MU_c B. MU_c/P_c < MU_d/P_d C. MU_c/P_c > MU_d/P_d D. MU_c > MU_d
Business
1 answer:
lana [24]3 years ago
8 0

Answer:

<h2>The correct answer in this case is option C. or MU(c)/P(c)>MU(d)/P(d).</h2>

Explanation:

Under consumer equilibrium theory for two commodity model,a rational consumer maximizes his or her utility when the marginal utility(MU) obtained from consuming one good is equal to the same of the other.This is the fundamental essence of the Law of Equimarginal Utility in Economics.Now,in this case,the consumer will purchase more of good C than good D if the Marginal utility obtained from one unit of good C or MU(c)  for the money spend on consumption of good C or price of C,P(c) is greater than the marginal utility obtained from consuming 1 more unit of good D or MU(d) for money spend on purchase of good D or price of that particular unit of D or P(d).Therefore,since the marginal satisfaction compared to the amount of money spend for the consumer is higher for good C compared to the other or good D,it will increase the total utility level of the consumer from that particular consumption bundle or pattern.Hence,he or she will spend more on the consumption of good C than good D.

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Naddika [18.5K]

Answer:

$22,000

Explanation:

Current liabilities are debts that a company must pay within a twelve month period.

This company's current liabilities are:

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Since the note payable is due in 18 months, it is not considered a current liability.  

8 0
3 years ago
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Answer:

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3 years ago
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Answer:

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4 0
2 years ago
If a company would like to increase its degree of operating leverage it should?
dalvyx [7]

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<h3>What is the relationship between variable cost and fixed cost with profit?</h3>

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The amount of product generated determines the fluctuation in variable costs. Raw materials, labor, and commissions are examples of variable expenses. Regardless of the level of production, fixed expenses stay constant. Lease and rental payments, insurance, and interest payments are examples of fixed costs.

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brainly.com/question/14872023

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1 year ago
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