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Liula [17]
4 years ago
5

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:
alexira [117]4 years ago
8 0

Answer:

D.

Explanation:

Marginal Utility puts a numerical value on the amount of satisfaction that a consumer gets from buying an additional unit of a product or service. Therefore based on this information it can be said that the information provided in the question indicates that in order to maximize utility, Ellie should buy more of Alpha and less of Beta, mainly due to the fact that the marginal cost of Alpha is double that of Beta and both cost the same price.

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3 years ago
What is an easy way to convert an hourly wage into an approximate full-time annual wage?
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3 years ago
To get the benefits of vertical integration without the accompanying risks, companies can ______. (Check all that apply.)
Ganezh [65]

Companies can do the listed in order to get the benefits of vertical integration without the accompanying risksL

  • choose strategic outsourcing
  • use taper integration

<h3>What is a vertical integration?</h3>

This refers to a business strategy that allows a firm company to alter or design its operations by taking direct ownership of various stages of its production process rather than just relying fully on an external contractors or suppliers.

The risk associated with a vertical integration that could be an inability to cope with new technologies because they evolve quickly can be correct by choosing a strategic outsourcing or using a taper integration.

Therefore. the Option A & B is correct.

Missing options "

-choose strategic outsourcing

-use taper integration

-control every element of the industry value chain

-opt to become fully vertically integrated"

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7 0
2 years ago
Brad has a comparative advantage in the production of a. wheat and Theresa has a comparative advantage in the production of beef
Flura [38]

Complete/Correct Question:

Assume that Brad and Theresa can switch between producing wheat and producing beef at a constant rate.

Minutes Needed to Make

1 Bushel of Wheat

Brad: 10

Theresa: 6

1 Pound of Beef

Brad: 12

Theresa: 10

Brad has a comparative advantage in the production of

a. wheat and Theresa has a comparative advantage in the production of beef.

b. beef and Theresa has a comparative advantage in the production of wheat.

c. both goods and Theresa has a comparative advantage in the production of neither good.

d. neither good and Theresa has a comparative advantage in the production of both goods.

Answer:

B, beef and Theresa has a comparative advantage in the production of wheat.

Explanation:

Firstly, let's define comparative advantage.

Comparative advantage can be said to be the ability to produce a product at a far lesser rate than is obtainable.

From the above question, it can be deduced that Theresa has a comparative advantage in the production of wheat going by the huge difference in the time needed to produce wheat.

On the other hand, Brad has a comparative advantage in the production of beef. This is because the time difference in the production time of wheat isn't the same with beef and as such Brad has some advantage in this regard.

Cheers.

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bulgar [2K]

Answer:

Business risk usually occurs in one of four ways: strategic risk, compliance risk, operational risk, and reputational risk.

Explanation:

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