1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Llana [10]
3 years ago
8

Suppose that Omar's marginal utility for each additional cup of coffee is 5.5 utils per cup no matter how many cups he drinks. O

n the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats, 9 for the second he eats, 8 for the third he eats, and so on (that is, declining by 1 util per additional doughnut). In addition, suppose that coffee costs $1 per cup, doughnuts cost $1 each, and Omar has a budget that he can spend only on doughnuts, coffee, or both. How big would that budget have to be before he would spend a dollar buying a first cup of coffee?
Business
1 answer:
Lelechka [254]3 years ago
8 0

Answer:

Explanation:

To answer this question, we first need to calculate the marginal utility per dollar for doughnuts. Recall that the marginal utility per dollar for a good is the marginal utility divided by the price of the good (=MU/P). For the first doughnut we have 10 (=10/$1), the second doughnut 9(=9/$1), third 9, fourth 8, fifth 7, sixth 6, seventh 5, eighth 4, ninth 3, tenth 2 and eleventh 1. The marginal utility per dollar for every cup of coffee is 5.5 (=5.5/$1). To determine how big the budget would have to be before Omar would spend a dollar buying his first cup of coffee, we compare the marginal utility per dollar values. Omar will purchase the first doughnut before he buys a cup of coffee because the marginal utility per dollar for the doughnut is greater than the marginal utility per dollar for the cup of coffee (10>1.5). The same is true for the second through the eighth doughnut. This implies Omar will buy 8 doughnuts at the price of $1 before he buys his first cup of coffee. Therefore his budget will need to $9 before he buys his first cup of coffee, $8 on the doughnuts and $1 for the cup of coffee.

Answer: $8

You might be interested in
GDP is the: national income minus all non-income charges against output. monetary value of all final goods and services produced
olasank [31]

Answer:

The correct answer is: monetary value of all final goods and services produced within the borders of a nation in a particular year.

Explanation:

GDP of a nation can be defined as the monetary value of all the goods and services that are produced within the geographical boundaries of the nation in a year.

The GDP does not include intermediate goods and services as it may lead to double counting. The reselling of objects is also not included.

It is used to measure the health of a nation's economy. It shows the level of economic activities in a nation. An increase in GDP means economic growth.

6 0
3 years ago
What is meant by assessment? Activities that occur between two or more businesses. Provides services for connecting network reso
stiks02 [169]

Answer:Documenting rules, procedures, and guidelines to be tested against a system.

Explanation:

Assessment means to analyzing  someone or something  in respect of its quality, quantity and other such characteristics. Generally, assessment is done by comparing the actual results with some predetermined criteria .

Assessment is done by firms to know whether there is a problem, where it is and how it can be solved so that future losses could be saved.

Hence from the above we can conclude that the correct option is C .

6 0
3 years ago
Stewart Parnell, the former CEO of the now-bankrupt Peanut Corporation of America, was charged with falsifying food safety repor
slega [8]

This is a case of Food safety fraud by Penanut corporation of America and the culprits where sentenced to prison in Albany,Georgia

Explanation:

  • In the above mentioned case the managers (c)who shipped the product knowing that it was contaminated where also punished .
  • The managers where punished for their role in shipping the salmonella -positive peanut product,for falsifying the microbiological results.
  • The evidence of the trial reflected that tainted food shipping  led to a salmonella outbreak in 2009 with more than 700 reported cases of salmonella poisoning in 46 states.

4 0
3 years ago
In order for money to work properly, there can be only a certain amount of it in
tino4ka555 [31]
A.limited supply hope that helps
8 0
3 years ago
Income Statement The revenues and expenses of Paradise Travel Service for the year ended May 31, 20Y6, follow: Fees earned $954,
stiv31 [10]

Answer:

Instructions are listed below

Explanation:

An income statement is one of the three important financial statements used for reporting a company's financial performance over a specific accounting period. The income statement focuses on the four key items - revenue, expenses, gains, and losses. It does not cover receipts (money received by the business) or the cash payments/disbursements (money paid by the business).

It follows the general structures:

Revenues (+)

Operating Revenue

Non-Operating Revenue

Total

Expenses (-)

Primary Activity Expenses

Secondary Activity Expenses

Total

Gains (+)

Losses (-)

Net income/loss

In this exercise:

Total revenues=$954210

Expenses:

Office expense 219470

Miscellaneous expense 19085

Wages expense 458020

Total Expenses=$696575

Net profit= $275635

4 0
3 years ago
Other questions:
  • Which of the following should have the strongest cause and effect relationship with overhead costs? Non-value-added costs. Cost
    6·1 answer
  • Peanuts and soy products are dangerous for people with what condition?
    13·1 answer
  • Pilcher Corp. manufactures tents in its two factories located at two states in Arkadas. It exports its goods to several of its n
    10·1 answer
  • The only difference between variable and absorption costing is the expensing of ________.A) direct manufacturing costs B) variab
    12·1 answer
  • The two characteristics of a competitive market are 1) many buyers and sellers in the market and 2) the goods offered by the var
    14·1 answer
  • Which is not something you should look for in a saving account?
    9·1 answer
  • Weber Company purchased a mining site for $1,750,000 on July 1. The company expects to mine ore for the next 10 years and antici
    11·1 answer
  • Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, a
    12·1 answer
  • In December of Year 4, John (a cash-basis taxpayer) received a $2,000 payment from Tom who signed a year's lease to rent John's
    12·1 answer
  • For an economy starting at full employment real GDP, an increase in autonomous expenditure results in a(n) g
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!