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Liula [17]
3 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]3 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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What's the difference between product and brand?
ElenaW [278]
A product is made by a company and can be purchased by a consumer in exchange for money while brands are built through consumer perceptions, expectations, and experiences with all products or services under a brand umbrella.
4 0
2 years ago
Read 2 more answers
When an organization has employees of different backgrounds and skill sets, it has greater and will be better than monocultural
creativ13 [48]

N.B: I don't understand your question fully and neither can i find the complete question anywhere on the internet so im going to answer this sentence and hope it helps you.

Answer:

True

Explanation:

When a company has employees from different backgrounds and with different skills set, it helps the company come up with a lot of innovations that cuts across different cultures, thereby expanding their own range of services and/or goods. Also it helps in problem solving as each employee can come to the table with various ways of solving a problem.

This situation can be called diversity of thoughts.

Cheers.

7 0
2 years ago
In what circumstances is it most important to use multistage dividend discount models rather than constant-growth models?
patriot [66]

Answer:

when valuing companies with temporarily high growth rates.

Explanation:

Discounted dividend models are methods to assess a company's share price based on the dividends that company will distribute in the future. Also known by its name in English dividend discount model (DDM).

These models are based on the theory that the price of a share must be equal to the price of the dividends that the company will deliver, discounted at its net present value.

If the price of the share in the market is lower than the result obtained by the discounted dividend model, the share is undervalued and therefore it is advisable to buy. If, on the contrary, the market price is higher than the model, it is understood that the share price is too high.

Multistage dividend growth models

It is very difficult for a company to experience the same growth every year as the Gordon model assumes, so multistage models assume different growths for each period.

The most common is to use two or three stage growths, where at first the growths are higher but then tend to stabilize at a smaller constant growth. As for example in early stage companies.

5 0
3 years ago
An investment proposal with an initial investment of $100,000 generates annual net cash inflow of $20,000 for a period of 10 yea
dalvyx [7]

Answer:

5 years

Explanation:

Initital investment           $100,000

Cash inflows 1-5 (20,000*5)             ($100,000)

The payback period for this investment project is 5 years.

or

100,000/20,000=5 years

7 0
3 years ago
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Delicious77 [7]

Answer: the correct answer is (A) international product life cycle

Explanation:

International product life cycle is based on the theory of product life cycle that basically states that a product cycle has four stages: introduction, growth, maturity and decline.

4 0
2 years ago
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