Answer:
The marginal utility of the fourth plate is zero or below zero
Explanation:
The reason is that the law of diminishing marginal utility says that the marginal utility of a product declines upon continuous consumption of that item. This means that the utility before the consumption of first buffet was high and when the second buffet was consumed by the same person the utility was further reduced and so on. This means that the utility must be positive which if is higher enough then the customer is will to pay and eat the buffet again. If it is zero or below zero the customer is not willing to pay for the buffet. This is the reason the person doesn't ordered the item again.
You can not eat the same buffet for all the 365 days. This means the taste of a tasty food fades away after some time or I would say that the utility is gone. Same is the case when you will keep using cellphone for a period and then sell it or dispose it because the item doesn't entertains you or in other words the utility has significantly fallen and is almost zero or below zero.
Answer:
Opportunity Cost refers to loss of potential gain which could've resulted from other non chosen alternatives when one opts for an alternative. It's also defined as the next best alternative.
The Opportunity Cost of attending a 4 year college with full time schedule & living on campus would be the foregone income another student earns who works in an organization for those same number of hours for the same duration of 4 years and also the fees paid for those 4 years at the college which if would've been banked or invested would've yielded a return.
The reason for choosing a four year college experience over above mentioned alternatives could be the in the form of expected higher income once an individual avails a degree.
Answer:
1. The mandatory retirement age in Wonkaland is abolished.
- INCREASE IN THE LONG RUN AGGREGATE SUPPLY CURVE: greater use of labor
2. Wonkaland's main export is candy. Candy from this country increases in popularity as consumers all over the world want to buy Wonkalandian candy.
- NO CHANGE IN THE LONG RUN AGGREGATE SUPPLY CURVE
3. Since candy from Wonkaland has become an international sensation, factories in Wonkaland double the number of candy making machines.
- INCREASE IN THE LONG RUN AGGREGATE SUPPLY CURVE: greater use of capital investments
4. The top candy companies in Wonkaland chose to relocate their means of production to other countries around the world.
- DECREASE IN THE LONG RUN AGGREGATE SUPPLY CURVE: lower use of capital investments
Explanation:
The long run aggregate supply curve is only affected by changes in capital, labor and technology. If the use of these factors increases, the LRAS curve will increase, if their use decreases, then the LRAS curve decreases.
Answer: A.) $32.64 per machine hour
Explanation:
Given the following :
Estimated machine hours = 41,000 machine hours
Estimated variable manufacturing overhead = $4.16 per machine hour
Estimated total fixed manufacturing overhead = $1,167,680
Total Estimated manufacturing overhead :
(Estimated total variable manufacturing overhead + Estimated total fixed manufacturing overhead)
Estimated total variable manufacturing overhead:
$4.16 × estimated hours
= $4.16 × 41,000
= $170560
Total Estimated manufacturing overhead :
$170560 + $1,167,680 = $1338240
Hence,
Predetermined overhead rate :
Total Estimated manufacturing overhead / estimated hours
= $1338240 / 41000
=$32.64
Answer:
It will be sold at $1,186.71
Explanation:
We will calculate the present value of the cuopon payment and the maturity at the new market rate of 7%
<u>The coupon payment will be calcualte as the PV of ordinary annuity</u>
C $50 (1,000 x 10%/2 as there are 2 payment per year)
time 16 (8 years x 2 payment per year)
rate 0.035 (7% rate / 2 payment per year)
PV $604.7058
<u>The maturity will be calculate as the PV of a lump sum</u>
Maturity 1,000.00
time 8 years
rate 0.07
PV 582.01
<u>The market price will be the sum of both:</u>
PV cuopon $604.7058
PV maturity $582.0091
Total $1,186.7149
