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Ilya [14]
3 years ago
13

Suppose Lisa's utility function is 4XY, where X is the consumption of beer and Y is consumption of pizza. For this utility funct

ion, the marginal utility of X is given by MUX=4Y, and the marginal utility of Y is given by MUY=4X .
a. Suppose Lisa wants to obtain a utility level of 48 utils. For each of the following, calculate the consumption of pizza (Y) that corresponds with the given consumption of beer (X) when U=48 .
i. Bundle 1: Beer = 2; Pizza = __________
ii. Bundle 2: Beer = 3; Pizza = __________
iii. Bundle 3: Beer = 4; Pizza = __________
iv. Bundle 4: Beer = 12; Pizza = ____________
Business
1 answer:
Evgesh-ka [11]3 years ago
3 0

Answer:

Bundle 1: Beer = 2; Pizza = 6

Bundle 2: Beer = 3; Pizza = 4

Bundle 3: Beer = 4; Pizza = 3

Bundle 4: Beer = 12; Pizza = 1

Explanation:

Given that;

Lisa utility function UF(X,Y) = 4XY

where;

X = beer

Y = Pizza

MU_X = 4Y

MU_Y = 4X

The utility level = 48

so, UF(X,Y) = 4XY

putting different values of X (i.e beer ) given to us in this equation, we can calculate the values of Y(i.e pizza) to fulfill the utility

So; when X (beer) = 2

48 = 4×2×Y

48 = 8Y

Y = 48/8

Y = 6

Thus, Bundle 1: Beer = 2; Pizza = 6

when X (beer) = 3

48 = 4×3×Y

48 = 12 Y

Y = 48/12

Y = 4

Thus; Bundle 2: Beer = 3; Pizza = 4

when X (beer) = 4

48 = 4×4×Y

48 = 16 Y

Y = 48/16

Y = 3

Thus; Bundle 3: Beer = 4; Pizza = 3

when X(beer) = 12

48 = 4×12×Y

48 = 48 Y

Y = 48/48

Y = 1

Thus; Bundle 4: Beer = 12; Pizza = 1

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The marketing team of Under Armour has come up with a strategy to advertise their shoes as a product that makes walking and runn
slavikrds [6]

Answer:

Differentiation

Explanation:

Differentiation is a marketing strategy in which a company makes a particular product unique and attractive in a way that it stands out or is distinguished from other similar products of other companies that are competitors in the same market. Differentiation gives a competitive advantage to a product against other similar products in a market segment.  

Marketing the shoes in a unique way that creates a perceived difference in the minds of customers is a good example of differentiation in marketing, as this would make the shoe unique and even get a premium price slashed on it that customers don’t mind paying.

8 0
3 years ago
Financial statements that give effect to a subsequent event as though the event had occurred at the balance sheet date are known
mojhsa [17]

Answer:

The correct answer to the following question is Pro forma financial statements.

Explanation:

A subsequent event can be defined as an event which takes place after the reporting period, but before the financial statements of a company are issued.  And depending on what kind of event they are like additional information or new events, it will be decided whether these events should be disclosed in a company's financial statement or not.

If it is decided that the subsequent event should be disclosed in the company's financial statement then a pro forma financial statement would be made, in which nature and financial effect of the subsequent event should be disclosed.

4 0
2 years ago
At December 31, Idaho Company had the following ending account balances:
telo118 [61]

Answer:

Balance of Stockholder's Equity at December 31 is $1,910,000.

Explanation:

This will appear as follows

Idaho Company

<u>Details                                                                         $      </u>

Stockholder's Equity:

Common Stock                                                       525,000

Preferred Stock                                                      500,000

Additional Paid-In Cap. - Common Stock             625,000

Additional Paid-In Cap. - Preferred Stock              50,000

Treasury Stock                                                        (40,000 )

Retained Earnings                                                <u>  250,000  </u>

Balance at December 31                                    <u>   1,910,000  </u>

5 0
3 years ago
According to the rational rule for sellers, this company should produce ____ of output and charge a price of _____.
hoa [83]

Answer: two units; $450

Explanation:

7 0
1 year ago
Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the bo
grigory [225]

Answer:

The correct options are as follows

Buyers will pay all of the tax.

The price of Humbugs will rise to $60.

The quantity of Humbugs demanded will not change.

Explanation:

As the question is not complete, the complete question is found online and is attached herewith.

The options given are as follows

Sellers will pay all of the tax.

Buyers will pay all of the tax.

The price of Humbugs will rise to $60.

The price of Humbugs will rise by less than $10.

The quantity of Humbugs demanded will not change.

Now option 1 is not correct as the buyer has to pay the tax not the seller.

option 2 is correct

option 3 is correct

option 4 is not correct as the initial price is $50 and the new price is to be more than $60 thus the rise is more than $10.

option 5 is correct as the demand of the hamburger will remain the same.

5 0
2 years ago
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