1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
SSSSS [86.1K]
2 years ago
13

Juan spends all of his income on baseball cards and candy. At his current consumption bundle, the marginal utility of baseball c

ards is 20 and the marginal utility of candy is 10. Assuming that diminishing marginal utility applies to both goods, if the price of baseball cards is $10 and the price of candy is $2, Juan should:
continue to consume the current bundle.
consume more candy and fewer baseball cards.
consume more baseball cards and less candy.
consume equal amounts of baseball cards and candy.
Business
1 answer:
shtirl [24]2 years ago
7 0

Answer:

Juan should consume more baseball cards and less candy.

Explanation:

Juan spends all of his income on baseball cards and candy.  

The marginal utility of baseball cards is 20 and the marginal utility of candy is 10.  

The price of baseball cards is $10 and the price of candy is $2.  

The total utility will be maximized if the ratio of marginal utility and price of a good is equal for both the goods.  

The ratio for baseball cards

= \frac{MUx}{Px}

= \frac{20}{10}

= 2

The ratio for candy

= \frac{MUy}{Py}

= \frac{10}{2}

= 5

Since, the ratio is greater for candy and lesser for baseball cards, Juan should consume more baseball cards and less candy.

You might be interested in
Suppose you know a company's stock currently sells for $64 per share and the required return on the stock is 0.12. You also know
jasenka [17]

Answer:

$3.62

Explanation:

Dividend Yield = 0.12/2

Dividend Yield = 0.06

==> (Dividend in One Year)/Current Price= .045

D1 = 0.06*$64

D1 = $3.84

D0 (Current Dividend) = D1/(1+Dividend Yield)

D0 (Current Dividend) = $3.84/(1.06)

D0 (Current Dividend) = 3.622641509433962

D0 (Current Dividend) = $3.62

6 0
3 years ago
Among fatal plane crashes that occurred during the past 55 ​years, 619 were due to pilot​ error, 85 were due to other human​ err
sergey [27]

Answer:

Relative Frequency = Observed value for each cell / Total frequency * 100

Cause                       Relative Frequency

Pilot Error                           619

Other human error             85

Weather                              574

Mechanical problems        566

Sabotage                            524

Total                                   2368

The total frequency is 2368

The calculation of the relative frequency distribution is

Cause                          Relative Frequency           Result

Pilot Error                         619/2368 * 100              26.14%

Other human error           85/2368 * 100               3.59%

Weather                            574/2368 * 100             24.24%

Mechanical problems      566/2368 * 100             23.90%

Sabotage                          524/2368 * 100             <u>22.13%</u>

Total                                                                          100%

Conclusion: The most serious threat to aviation safety is the Pilot error as it has the highest frequency. Pilot need to be more equipped with understanding and knowledge of how to deal with unexpected event i.e. turbulence, engine failure among others..

5 0
3 years ago
On January 2, Haskins Company purchases a laser cutting machine for use in fabrication of a part for one of its key products. Th
MakcuM [25]

Answer:

Explanation:

Cost of machine - $80000

Useful life - 5 years

Salvage value -$5000

Depreciable amount = 80000-5000= 75000

Annual depreciation = 75000/5 = 15000

Year                    DR                       Accum Dep

Cost                                                                                   8000                  

1                Depreciation 15000       15000  

2               Depreciation  15000      30000

Year 3      Depreciation  15000      45000

Year 4      Depreciation   15000      60000

Year 5      Depreciation   15000      75000

Financial statement template

Balanced sheet

Cash asset + Non cash asset = liabilities + Equity

Cash asset + 65000  = liabilities + equity

Income statement

Revenue - expenses = Net income

Revenue - 15000 - Net Income

3 0
3 years ago
Manuel has plans to go to a movie and already has a $10 nonrefundable, nonexchangeable, and nontransferable ticket. Now Poornima
Verdich [7]

Answer:

3. Correctly ignored a sunk cost

Explanation:

Sunk costs refer to those costs which have been incurred in the past and which can no longer be recovered. For example, past expenditure on research and development with no current or future benefits represent sunk costs which can no longer be recovered.

Sunk costs are irrelevant for decision making process as they do not relate to current projects and yield no economic benefit.

In the given case, Manuel had already purchased a $10 movie ticket, which can neither be transferred nor eligible for a refund.  Later when he does not exercise the option of going for the movie and opts for a concert instead, the amount of 10$ spent on the movie represents a sunk cost which is non recoverable.

8 0
3 years ago
The unrecognized net gain or loss balance must be amortized when it exceeds 10% of the larger of the: beginning accumulated bene
Schach [20]

Answer:

beginning projected benefit obligation or the market-related asset value

Explanation:

The balance of the Unrecognized Net Gain or Loss account subject to amortization only if it exceeds 10% of the larger of the beginning balances of the projected benefit obligation or the market-related value of the plan assets.

Amortization is simply the procedure or the process of retiring a debt or recovering a capital investment. This can be done via scheduled, systematic repayment of the principal or a program of periodic contributions to a sinking fund or debt retirement fund.

4 0
3 years ago
Other questions:
  • Leo, a resident of Missouri, owns a warehouse in Nebraska. A dispute arises over the ownership of the warehouse with Opal, a res
    11·1 answer
  • Pollution caused by candles isn't taken into account.Quality improvements as a source of well-being are ignored.GDP doesn't capt
    14·1 answer
  • Adams Pointers Corporation expects to begin operations on January 1, 2019; it will operate as a specialty sales company that sel
    7·1 answer
  • What causes unemployment post-keynesianism?
    13·1 answer
  • Australia is a major producer of agricultural and dairy products and exports coffee, tea, spices, and milk products to the Unite
    8·1 answer
  • The corporation's task environment: a. encompasses the physical working areas of the organization. b. includes those elements or
    12·1 answer
  • What role does the government play in the economy's circular flow?
    11·1 answer
  • During the swing era, economically speaking, American labor industries increasingly turned to _______ and ______ to make the eco
    5·1 answer
  • Under the allowance method, a.bad debt expense is recorded when specific customer accounts are determined to be uncollectible. b
    11·1 answer
  • Other things the same, when the interest rate rises, people would want to lend Group of answer choices less, making the quantity
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!