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3 years ago

Suppose timothy consumes two goods, soda and chips. the slope of his indifference curve for these two goods reflects:

Business

1 answer:

Ierofanga [76]3 years ago

6 0

Answer: The rate at which he is willing to substitute one good for the other

Explanation: Indifference curve shows the combination of two goods that give the consumer the same level of satisfaction. the slope of this indifference curve shows how much the consumer is willing to substitute one good for the other in order to keep utility constant.

$Slope= \frac{Change in x}{Change in y}$

Slope of Indifference curve for soda and chips shows how much soda Timothy is willing to substitute to get 1 additional unit of chips.

$Slope=\frac{Unit of soda foregone}{Units of chips gained}$

So, the correct option is the rate at which he is willing to substitute one good for the other.

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UkoKoshka [18]

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4 0

3 years ago

Read 2 more answers

Cane company manufactures two products called alpha and beta that sell for $225 and $175, respectively. each product uses only o

tester [92]

Answer:

The special order should be rejected since it decreases net profit.

Explanation:

Alpha = $225

Beta = $175

total production capacity = 130,000 pounds

raw materials = $6 per pound

Production costs per unit Alpha Beta

direct materials $42 $24

direct labor $42 $32

variable manufacturing overhead $26 $24

fixed manufacturing overhead $34 $37

variable selling expenses $31 $27

common fixed expenses $34 $29

total cost per unit $209 $173

Cane expects to sell 114,000 Alphas.

Net profit = (114,000 x $225) - (114,000 x $209) = $25,650,000 - $23,826,000 = $1,824,000

If the new sales order is accepted, Cane's revenue will increase to:

101,000 x $225 = $22,725,000
29,000 x $156 = $4,524,000
total = $27,249,000

Their total cost will by:

114,000* x $209 = $23,826,000
16,000 x ($209 - $34 avoidable fixed costs) = $2,800,000
total = $26,626,000

*This sale increases the output, but previous costs cannot be avoided.

Net profit with special order = $27,249,000 - $26,626,000 = $623,000

The special order should be rejected since it decreases net profit.

6 0

3 years ago

In an open economy, gross domestic product equals $2,450 billion, consumption expenditure equals $1,390 billion, government expe

N76 [4]

Answer:

$735 billion

Explanation:

Calculation to determine the national saving

Using this formula

National saving =Gross domestic product-Consumption expenditure-Government expenditure

Let plug in the formula

National saving=$2,450 billion-$1,390 billion- $325 billion

National saving=$735 billion

Therefore the national saving is $735 billion

7 0

3 years ago

A milestone is a typical measuring point used when establishing cost control. Which of the following DOES NOT accurately describ

KiRa [710]

Answer:

d. Milestones are developed during risk planning.

Explanation:

A milestone is a typical measuring point used when establishing cost control. Which of the following does NOT accurately describes the use of cost control milestones?Select one:a. Project managers and sponsors often decide the number of milestones jointly.b. Milestones are often identified in the project charter.c. Project managers can use their cash flow projections to determine the funding needed to reach each milestone.d. Milestones are developed during risk planning.

ANSWER

It is not correct that milestones are developed during risk planning but rather they are developed during Project budgeting where the deliverables are identified in terms of the cost to achieve them. Truly as stated in the scenario's options, Project managers can use their cash flow projections to determine the funding needed to reach each milestone. It is in the project planning phase that these milestones are established by Project managers and sponsors jointly.

5 0

3 years ago

A Firm needs to replace most of its machinery in five years at a cost of $500,000. The company wishes to create a sinking fund t

DaniilM [7]

Answer:

The quarterly deposit required is $ 20,578.36

Explanation:

in order to determine the needed quarterly deposit, we make use of pmt formula in excel, which is given as :

=-pmt(rate,nper,-pv,fv)

rate is the rate of return on the deposit at 8% per year but 2% per quarter(8%/4)

nper is number of deposits required in the fund,which number of years ,5 multiplied by 4(4 deposits per year)

pv is the present of the value of the future amount which is zero as it is not required.

Fv is the amount expected in 5 years which is $500,000

=-pmt(2%,20,0,500000)

pmt= $20,578.36

6 0

3 years ago

Suppose timothy consumes two goods, soda and chips. the slope of his indifference curve for these two goods reflects:​

Suppose timothy consumes two goods, soda and chips. the slope of his indifference curve for these two goods reflects: