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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.

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Denzel Brooks opens a Web consulting business called Venture Consultants and completes the following transactions in March.
GrogVix [38]

Answer:

a. Journal Entries

March 1

Cash $150,000 (debit)

Office Equipment $22,000 (credit)

Capital $ 172,000

March 2

Prepaid Rent $6,000 (debit)

Cash $6,000 (credit)

March 3

Office equipment $3,000 (debit)

Office supplies $1,200 (debit)

Accounts Payable $4,200 (credit)

March 6

Cash $4,000 (debit)

Service Revenue $4,000 (credit)

March 9

Accounts Receivable $7,500 (debit)

Service Revenue $7,500 (credit)

March 12

Accounts Payable $4,200 (debit)

Cash $4,200 (credit)

March 19

Prepaid Insurance $5,000 (debit)

Cash $5,000 (credit)

March 22

Cash $3,500 (debit)

Accounts Receivable $3,500 (credit)

March 25

Accounts Receivable $3,280 (debit)

Service Revenue $3,280 (credit)

March 29

Drawings $5,100 (debit)

Cash $5,100 (credit)

March 30

Office Supplies $600 (debit)

Accounts Payable $600 (credit)

March 31

Utilities Expenses $500 (debit)

Cash $500 (credit)

b.Ledger Account Balances

Cash ($150,000 - $500 - $5,100 +  $3,500 - $5,000 - $4,200 + $4,000 - $6,000) = $136,700

Office Equipment ($22,000 + $3,000) = $25,000

Capital = $ 172,000

Prepaid Rent = $6,000

Office supplies ($1,200 + $600) = $1,800

Accounts Payable ($4,200 + $600 - $4,200) = $600

Service Revenue ($4,000 + $3,280 + $7,500) = $14,780

Accounts Receivable ($7,500 - $3,500 + $3,280) = $7,280

Prepaid Insurance = $5,000

Utilities Expenses = $500

c. Trial Balance

                                                        Debit                    Credit

Cash                                             $136,700

Office Equipment                         $25,000

Capital                                                                      $ 172,000

Prepaid Rent                                  $6,000

Office supplies                                $1,800

Accounts Payable                                                          $600

Service Revenue                                                        $14,780

Accounts Receivable                    $7,280

Prepaid Insurance                         $5,000

Utilities Expenses                            $500

Totals                                          $187,380              $187,380

Explanation:

The above show the journals recorded, posting to ledger accounts and determination of account balances and trial balance as at April 30.

8 0
3 years ago
What term refers to the process in which two or more parties make offers, counteroffers, and concessions in order to reach an ag
zhuklara [117]

Answer:

C, negotiation

Explanation:

Negotiation according to oxford dictionary is a discussion aimed at reaching an agreement. It means that before an agreement is reached, a lot of talking has to happen in order to arrive at the best situation for all parties.

In business, negotiation is involves parties making offers, conter offers over amd over till a conclusion is reached that works fine for all parties and necessary documents are exchanged.

Cheers

7 0
3 years ago
Identify whether you think you may or may not become an entrepreneur and launch your own
Katena32 [7]

Answer:

Explanation:

lol because its the business and elon musk said it himself and heas richest in world

e34rorowjiop

8 0
3 years ago
Wind Fall, a manufacturer of leaf blowers, began operations this year. During this year, the company produced 10,000 leaf blower
Citrus2011 [14]

Answer: Option (a) $146,500 is correct.

Explanation:

Company produced = 10,000 leaf blowers

Company produced sold =  8,500 leaf blowers

Income statement of year-end:

Sales = $ 382,500

Cost of goods sold = 170,000

Gross margin = $ 212,500

Selling and administrative expenses = 60000

Net income = $ 152,500

Production costs per leaf blower total = $20

Variable cost of goods sold = 8500 × $16 = $136000

Variable selling and administrative expenses = 15% of 60000 = $9000

Fixed production Cost = 10000 × $4 = 40000

Fixed Selling & Administrative expenses = (100% - 15%) of 60000 = $51000

∴ Net income under variable costing = sales - Variable cost of goods sold - Variable selling and administrative expenses - Fixed production Cost - Fixed Selling & Administrative expenses

= 382,500 - 136000 - 9000 - 40000 - 51000

= 146500

4 0
3 years ago
_____________ is when a product is included inside a TV show or movie. A. Product placement B. A commercial C. Promotion D. Inst
Zigmanuir [339]

Answer: A. Product placement

For example, when a character drinks a brand of soda, then this is a product placement. Ideally it should be subtle but sometimes it's very obvious.

3 0
2 years ago
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