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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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3 years ago

Which of the following statements is right about facility location analysis?

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Answer:

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3 years ago

Geese Company utilizes the LIFO retail inventory method. Its cost-to-retail percentage is 60% based on beginning inventory and 6

Nataly_w [17]

Answer:

$152,000

Explanation:

Calculation for the cost of the ending inventory

First step is to calculate the cost-to-retail percentage of the beginning inventory amount

Using this formula

Beginning Inventory =Cost-to-retail percentage*Beginning inventory at retail

Let plug in the formula

Beginning Inventory =60%*$200,000

Beginning Inventory =$120,000

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Using this formula

Current period purchases= Purchases percentage* New layer

Let plug in the formula

Current period purchases=64%*50,000

Current period purchases=$32,000

The last step is to find the cost of the ending inventory using this formula

Ending inventory cost=Beginning Inventory+Current period purchases

Let plug in the formula

Ending inventory cost=$120,000+$32,000

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3 years ago

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3 years ago

Seattle Health Plans currently uses zero-debt financing. Its operating profit is $6 million, and it pays taxes at a 23 percent r

ahrayia [7]

Answer: ROE increases by 56.5% to 102.7%

Explanation:

ROE before capital structure change:

= Net income / Equity

= (Operating income * ( 1 - tax)) / Equity

= (6,000,000 * (1 - 23%)) / 10,000,000

= 46.2%

With new capital structure:

Debt financing = 59% * 10,000,000

= $5,900,000

Interest = 9% * 5,900,000

= $531,000

Net income = (Operating profit - interest) * ( 1 - tax)

= (6,000,000 - 531,000) * ( 1 - 23%)

= $‭4,211,130‬

Return on Equity = ‭4,211,130‬ / ( 10,000,000 - 5,900,000)

= 102.7%

Difference:

= 102.7 - 46.2

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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:​

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