Ask question

Ask question

All categories

3 years ago

5

You spend $5 on materials to make a scarf. You think you have added $10 of value, so you set the price at $15. Nobody buys the s

carf at that price, so you lower the price to $12, and someone buys it. What is the value of the scarf?

1 answer:

Serga [27]3 years ago

6 0

Answer: 12

Explanation:

You might be interested in

Charlie's brother, Alexander, also consumes apples (A) and bananas (B). Alexander's utility function happens to be U(A, B) = 5A

Andrei [34K]

Solution :

$U(A, B) = 5A + 2B$

a). Bundles $(40, 5)$ = U ( _____ , 2), lie on the same indifference curve. Suppose missing numbers is x.

So, $U(40, 5) = U(x, 2)$

(40 x 5) + (2 x 5) = 50x + (2 x 2)

210 - 4 = 5x

$x = 41.2$

So Alexander has $40$ apples and $5$ bananas. The indifference curve though $(40, 5)$ also include bundle.

Therefore, (41.2, 2)

b). $MRS_{BA} = \frac{MU_B}{MU_A}$

$=\frac{\delta U/\delta B}{\delta U/\delta A}$

$=\frac{2}{5}$

= 0.4

So Alexander has $40$ apples and $5$ bananas with this bundle. Alexander would like to give up $0.4$ unit apples for a banana.

7 0

3 years ago

Prepare the journal entries to record these transactions on blossom company's books using a periodic inventory system. (if no en

Mariana [72]

Since the company is following a periodic inventory system, it has to use temporary accounts to record sales and purchases.

Transaction A

Purchases – Dr 860500

Accounts payable 860500

Transaction B

Accounts payable - Dr $111,600

Purchase returns $111,600

Transaction C

Accounts payable - Dr 748900

Discount received 14,978

Cash 733,922

6 0

3 years ago

Sweet Treats sells ice cream cones for $4.25 per customer. Variable costs are $1.25 per cone. Fixed costs are $3,300 per mont

ziro4ka [17]

Answer:

Company's contribution margin ratio is <u>70.59%</u>

3 0

3 years ago

Which situation best illustrates an effect of the law of supply?

ollegr [7]

Answer:

c

Explanation:

5 0

3 years ago

A metal-cutting operation has a target value of 20 and consistently averages 19.8 with a standard deviation of 0.5. The design e

aniked [119]

Answer:

process capability index = Cpl ( lower ) = 1.20 ( A )

The process capability ratio = 1.33

Explanation:

Target value = 20

mean = 19.8

standard deviation = 0.5

upper specification limit = 22

lower specification limit = 18

The process capability index =

Cpu = $\frac{22- 18}{6(0.5)}$ = 4 / 3 = 1.33

Cpk ( upper ) = (22 - mean ) / 3 * std

= ( 22 - 19.8 ) / ( 3 * 0.5 ) = 2.2 / 1.5 = 1.47

Cpl ( lower ) = ( mean - 18 ) / ( 3 * 0.5 ) = ( 19.8 - 18 ) / 1.5

= 1.8 / 1.5 = 1.2

hence the process capability index is Capability index with the minimum value which is Cpl ( lower ) = 1.20 ( A )

The process capability ratio = 1.33 refer to Cpu equation

7 0

3 years ago