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
marishachu [46]
3 years ago
9

Suppose for a given consumer the marginal utility (MU) of a pizza is 100 utils and the MU of a hamburger is 80 utils, and that t

he price of a pizza is $15 and the price of a hamburger is $8. Given this information, the consumer ___________ in equilibrium, and should _________________.
Business
1 answer:
NemiM [27]3 years ago
3 0

Answer:

<u>is not</u> , <u>consume more of hamburgers</u>

Explanation:

A consumer is said to have achieved equilibrium when within his budget constraint, he purchases that combination of two goods which yield maximum satisfaction to him.

The equation for consumer equilibrium for two products is given by

\frac{MU_{x} }{P_{x} } = \frac{MU_{y} }{P_{y} }

In the given case, \frac{MU_{x} }{P_{x} } = \frac{100}{15} = \frac{20}{3} = 6.666

                            \frac{MU_{y} }{P_{y} } = \frac{80}{10}    = 8

wherein, x= pizza

              y= hamburger

As is evident, the marginal utility per dollar spent is greater in case of a hamburger, the consumer is not in a state of equilibrium.

Thus, he should consume more units of Hamburgers in order to maximize his utility.

You might be interested in
In appellate procedures, each party files a(n) _____ that contains a short description of a case, a factual summary, legal point
Snezhnost [94]

Answer:

The correct answer is letter "C": brief.

Explanation:

An appellant's brief is a legal document one of the parties of a trial may submit to change the decision taken by a Court. Just like its name indicates, it is a summarized statement used by the appellant to expose the reason why they believe the decision concluded by the Court is incorrect.

8 0
3 years ago
Sweet Company’s outstanding stock consists of 1,000 shares of cumulative 5% preferred stock with a $100 par value and 10,000 sha
Diano4ka-milaya [45]

Answer: In year three the preferred stockholders would receive $7,000 and the common stockholders would receive $25,000.

Explanation: Preferred stockholders are always paid before common stockholders. Since this stock in cumulative it means that when there is not enough income in one year to pay the preferred stock then the company needs to pay them when they have the money in the future.

In this case the preferred stock is 5% of $100 par value and is cumulative. This means that every year the company needs to pay 5% times $100 par value on each stock, and there is 1,000 shares, so the total is $5,000 in preferred stock dividends.

In year one and two they did not declare enough dividends to pay this full amount. In year one they declared $2,000 and year two they declared $6,000. At the end of year two they should have received $10,000, but only received $8,000. In year three they need to pay the preferred stockholders the $2,000 that are in arrears, plus the $5,000 for year three, for a total of $7,000. Since there was $32,000 in dividends declared and $7,000 is going to the preferred stockholders, it means that there is $25,000 left for the common stockholders. $25,000/10,000 shares equals $2.50 dividend per share.

5 0
3 years ago
When a consumer borrows money, the lender will ask the borrower to sign:
mel-nik [20]

Answer:

a lender's agreement.

5 0
2 years ago
If we want to use a measure of inflation that foreshadows price changes before they affect prices at the retail level, we would
Elza [17]

Answer: Producer price index

Explanation:

The producer price index is used to know the average differences in prices that are received by local producers for their output.

To calculate the producer price index, the current prices gotten by the sellers of a good or service is divided by the prices of the good or service using a base year and multiplying the result by 100. The producer price index is also a measure of inflation in an economy.

4 0
3 years ago
Robert bought 10 shares of Apex Company for $18 each and later sold all of them at $17 each. This transaction resulted in what t
ikadub [295]

Answer:

capital loss

Explanation:

3 0
3 years ago
Read 2 more answers
Other questions:
  • Deep Water Marina has 12,000 shares of stock outstanding that were sold to the general public last year. The firm has just decid
    14·1 answer
  • Anthony Inc. reported net income of $270,000. Beginning balances in Accounts Receivable and Accounts Payable were $17,000 and $2
    5·1 answer
  • The similarity between the linear and interactive communication models can be described as
    11·1 answer
  • Which is the most accurate definition of bankruptcy?
    12·1 answer
  • One advantage of preferred stock over common stock is that preferred stockholders
    14·2 answers
  • An investment will pay $202,000 at the end of next year for an investment of $182,000 at the start of the year. If the market in
    8·1 answer
  • On July 1, 2016 Harold paid $10000 for a Ten year bond with a stated interest rate of 5%, payable annually on July 1. On April 1
    12·1 answer
  • A 4-year project has an annual operating cash flow of $49,000. At the beginning of the project, $4,000 in net working capital wa
    11·1 answer
  • Maria's company makes televisions. The Clarity, a 4K television featuring wireless capabilities, is their best selling model, an
    12·1 answer
  • You are working as a private math tutor to raise money during spring break. Assuming you want to earn as much money as possible,
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!