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Dmitrij [34]
3 years ago
11

If you receive 10 units of utility from consuming one cup of coffee and 16 units of utility from consuming two cups of coffee, w

hich of the following is the likely amount of utility you will receive from consuming three cups of coffee?
a) 26 units of utility
b) 22 units of utility
c) 18 units of utility
d) 6 units of utility
Business
1 answer:
icang [17]3 years ago
8 0

Answer: 6 units of utility

Explanation:

The above scenario is termed diminishing marginal utility. It explains that as a consumer consumers a particular product, at first, the extra product consumed will give the consumer extra satisfaction but when the consumer continues to consumer more and more of the product, the satisfaction or utility derived from the product reduces.

If I get 10 units of utility from one cup of coffee, I'll derive satisfaction from it and may be eager and willing to have another cup which may lead to an increase of 16 utils but the third cup won't give enough satisfaction as the other cups I had previously taken. Hence the utility derived diminishes.

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When the interest rate on a bond is above the equilibrium interest rate, there is excess __________ in the bond market and the i
Kruka [31]
"... there is excess supply of bonds... interest rate will fall."
When the interest rate is above equilibrium, Qd (Quantity demanded) will be less than Qs (Quantity supplied) of bonds, since people are less willing to purchase when price is too high, and producers are more willing to sell their bonds when price is higher (since they earn more per unit sold). This results in surplus of bonds in the market, where Qs > Qd, which leads to a downward pressure being applied on price (in this case, the interest rate) so that Qs eventually equals to Qd.

Hope this helps!
4 0
3 years ago
If the total cost of 3 units is $40 and the total cost of 4 units is $50, the marginal cost of the fourth unit is:
ivann1987 [24]

Answer:

$10

Explanation:

Calculation for the marginal cost of fourth unit

Using this formula

Marginal cost = Change in Total cost / Change in number of units

Let plug in the formula

Marginal cost of fourth unit = $(50 - 40) / (4 - 3)

Marginal cost of fourth unit= $10 / 1

Marginal cost of fourth unit= $10

Therefore Marginal cost of fourth unit will be $10

5 0
3 years ago
Consider a two-firm oligopoly facing a market inverse demand curve of P = 100 – 2(q1 + q2), where q1 is the output of Firm 1 and
pickupchik [31]

Answer:

option (2) q1 = 16; q2 = 12

Explanation:

Given:

P = 100 - 2(q1 + q2)

here,

q1 is the output of Firm 1 and q2 is the output of Firm 2

Firm 1's marginal cost = $12

Firm 2's marginal cost = $20

Now,

Profit maximising level of output is attained where the marginal revenue equals the marginal cost

Thus,

for firm 1,

Total revenue, TR = P×Q

TR = (100 - 2q1 - 2q2) × q1

or

TR = 100q1 - 2(q1)² - 2(q1)(q2)

also,

MR = \frac{\delta TR}{\delta Q}

thus,

MR = 100 - 4q1 - 2q2

MC = $12

now

MR = MC

or

100 - 4q1 - 2q2 = 12

or

88 = 4q1 + 2q2

or

q2 = 44 - 2q1        ............... (1)

also,

for firm 2, we have

TR = (100 - 2q1 - 2q2) × q2

or

TR = 100q2 - 2(q1)(q2) - 2(q2)²

and,

MR = \frac{\delta TR}{\delta Q}

or

MR = 100 - 2q1 - 4q2

and

MC = $20

Now,

MR = MC

or

100 - 2q1 - 4q2 = 20

or

80 - 4q2 = 2q1

or

40 - 2q2 = q1        .....................(2)

Now,

substituting the value of q2 from (1), we get

q1 = 40 - 2(44 - 2q1)

or

q1 = 40 - 88 + 4q1

or

3q1 = 48

or

q1 = 16 units

substituting the value of q1 in equation (1) , we get

q2 = 44 - 2 × 16

or

q2 = 12 units

Therefore,

The correct answer is option (2) q1 = 16; q2 = 12

4 0
3 years ago
Several managers were having a budget meeting. At first, they were all focused on the issues, though there was mild disagreement
Rzqust [24]

The correct option is task; relationship. The first part of this meeting illustrates the task conflict that later turned into relationship conflict.

<h3>How to manage a conflict?</h3>

It is necessary that organizational departments understand the normality of conflicts in the organizational environment, where there are people with different values ​​and personalities. To reduce tensions, it is necessary to strengthen communication, increase employee motivation and create a culture favorable to development.

Therefore, in the organizational environment there are several types of conflicts with different scopes, which can be reduced through the creation of strong personal relationships and clear and objective communication.

Find out more about conflict management here:

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#SPJ1

4 0
2 years ago
What are The two segments of the organization's environment
vitfil [10]
General and specific
4 0
3 years ago
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