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3 years ago

What do the income effect, the substitution effect, and diminishing marginal utility have in common?

Business

1 answer:

Sveta_85 [38]3 years ago

3 0

Answer:

They all help explain the downsloping demand curve

Explanation:

The options to the question wasn't provided. The complete question can be in the attached image.

The demand curve slopes downward from left to right. This indicates that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

Income effect is a change in quantity demanded when real income change. Quantity demanded increases when real income increases and decreases when real income falls.

Substitution effect says that consumers would substituite to the consumption of a cheaper good when the price of a good originally consumed increases.

Diminishing marginal utility states that as consumption increases, utility derived from consumption falls and quantity demanded falls.

I hope my answer helps you

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Briefly explain how the government uses taxation as a redistribution method

crimeas [40]

Answer:

The purpose of this is to increase economic stability.

8 0

3 years ago

Matt's factory rents equipment and hires students to produce sports bags. Compare the outputs at which Matt's AVC and ATC curves

stiks02 [169]

The output at which the average variable cost is a minimum is smaller than the output at which the average total cost is a minimum because initially when decreasing marginal returns set in, (E) average fixed cost is decreasing at a faster rate than average variable cost is increasing.

<h3>What is the average variable cost?</h3>

In economics, the variable cost per unit is known as the average variable cost.
Divide the entire variable cost by the output to get the average variable cost.
In the short term, the enterprises use the average variable cost to determine whether to stop production.

<h3>What is the average fixed cost?</h3>

The average fixed cost (AFC) is a fixed cost that remains constant regardless of the number of goods and services produced by a corporation.
To summarize, the average fixed cost (AFC) is the fixed cost per unit derived by dividing the total fixed cost by the output level.

Therefore, the output at which the average variable cost is a minimum is smaller than the output at which the average total cost is a minimum because initially when decreasing marginal returns set in, (E) average fixed cost is decreasing at a faster rate than average variable cost is increasing.

Know more about average variable cost here:

brainly.com/question/25325504

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Complete question:

Matt's factory rents equipment for manufacturing sports bags and hires students.

The table gives Matt's average total cost schedule and average variable cost schedule.

The output at which the average variable cost is a minimum is smaller than the output at which the average total cost is a minimum because initially when decreasing marginal returns set in, ______.

A.the total fixed cost initially increases and then decreases

B. total fixed cost is decreasing at a faster rate than total variable cost is increasing

C. average variable cost is decreasing at a faster rate than average fixed cost is increasing

D. total variable cost is decreasing at a faster rate than total fixed cost is increasing

E. average fixed cost is decreasing at a faster rate than average variable cost is increasing

7 0

1 year ago

Durable Goods $1,250 Nondurable Goods $2,130 Services $9,000 Fixed Investment $1,800 Changes to Business Inventory $135 Investme

Anettt [7]

Answer:

Given that,

Durable Goods = $1,250

Non-durable Goods = $2,130

Services = $9,000

Fixed Investment = $1,800

Changes to Business Inventory = $135

Investment in Stocks & Bonds = $15,500

Federal Government Purchases = $1,800

State/Local Government Purchases = $1,700

Transfer Payments = $675

Exports from the United States = $2,100

Imports into the United States = $2,400

(a) Consumption, C = durable goods + non-durable goods + services

= $1,250 + $2,130 + $9,000

= $12,380

(b) Private investment, I = Fixed investment + change in inventory + Investment in stocks/bonds

= $1,800 + $135 + $15,500

= $17,435

(c) Government spending, G = Federal government purchase + state/local government purchase

= $1,800 + $1,700

= $3,500

(d) Net exports = Exports - Imports

= $2,100 - $2,400

= -($300)

GDP = C + I + G + NX

= $12,380 + $17,435 + $3,500 + (-$300)

= $33,015

7 0

3 years ago

During 2021, its first year of operations, Pave Construction provides services on account of $124,000. By the end of 2021, cash

7nadin3 [17]

Answer:

The adjusting entry for uncollectible accounts on December 31, 2021:

Debit Bad debts expense $9,600

Credit Allowance for uncollectible accounts $9,600

Explanation:

During 2021, Pave Construction provides services on account of $124,000. By the end of 2021, cash collections on these accounts total $92,000.

The balance of uncollected accounts on December 31, 2021 = $124,000 - $92,000 = $32,000

Pave estimates that 30% of the uncollected accounts will be uncollectible.

Estimated uncollectible = 30% x $32,000 = $9,600

The adjusting entry for uncollectible accounts on December 31, 2021:

Debit Bad debts expense $9,600

Credit Allowance for uncollectible accounts $9,600

8 0

3 years ago

Which of the following is an advantage of newspaper advertising?

Furkat [3]

Answer: Option A

Explanation: One of the major advantage of using newspaper is that an individual can reach to the prospects on such demo-graphical areas where other mediums might not work effectively and efficiently.

If an entity wants to advertise its product to smaller audiences at living in difficult places then it should go for newspaper. Also newspaper is the most common medium as one might not watch tv or listen radio daily but most of the individuals read newspaper everyday at morning.

Hence the correct option is A .

4 0

3 years ago