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evablogger [386]
3 years ago
8

Oscar makes purchases of an existing product (X) such that the marginal utility of the last unit he consumes is 10 utils and the

price is $5. He also tries a new product (Y) and the marginal utility of the last unit he consumes is 8 utils and the price is $1. The equal marginal principle suggests that Oscar shoulda. increase his consumption of product X and increase his consumption of product Y.b. increase his consumption of product X and decrease his consumption of product Y.c. increase his consumption of product Y and decrease his consumption of product X.d. decrease his consumption of product Y and decrease his consumption of product X.
Business
1 answer:
Dmitry [639]3 years ago
5 0

Answer:

The answer is: C) Increase his consumption of product Y and decrease his consumption of product X.

Explanation:

The equi-marginal utility principle states that a consumer will spend his money buying different goods that provide him or her the maximum possible satisfaction.

In Oscar's case, each extra unit of product X delivers 10 units of satisfaction, but product X costs $5. Instead he should buy product Y, which costs $1, and gives him 8 units of satisfaction. By consuming product Y, Oscar is getting 8 units of satisfaction per dollar spent, while he only gets 2 unit of satisfaction per dollar spent with product X.

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If Lorenzo stands up at a concert he can see the performance better. He therefore concludes if everyone stood up, everyone could
Lemur [1.5K]

Answer:

The correct answer is letter "B": The statement presents the fallacy of composition.

Explanation:

The Fallacy of composition refers to a fallacy by which an individual believes that something is true just because part of the whole is true. Typically, this type of belief leads to mistaken conclusions because what might be right for one person does not necessarily is right for others.

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3 years ago
Moses and the hebrews believed that the god given laws that defined a human relationship with other humans
Gnoma [55]

Answer:

true  

Explanation:

What are the ancient Hebrews laws of God called?

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8 0
3 years ago
ayback Period Payson Manufacturing is considering an investment in a new automated manufacturing system. The new system requires
algol13

Answer:

a) 3 years

b) 5 years

Explanation:

The new system requires an investment of $1,200,000

The payback period is the number of year whereas the cash inflow is equal to the total investment regardless the present value of cash inflow. It means we don't apply any rate in the calculation/

a) if the even cash flows of $400,000 per year, then the payback period is 3 years ($1,200,000 = $400,000 * 3)

b) The following expected annual cash flows: $150,000, $150,000, $400,000, $400,000, and $100,000. And total cash flows in 5 years is $1,200,000 = total investment $1,200,000

The payback period in this case is 5 years.

3 0
3 years ago
Last year the company had net operating income of $450,000 on sales of $1,500,000. Lost Peak’s average operating assets for the
vesna_86 [32]

Answer:

$280,000

Explanation:

Computation for the company’s residual income for the year

Using this formula

Residual Income=Operating income- (Average operating assets×Rate of return)

Let plug in the formula

Residual Income = $450,000 – ($1,700,000 x 10%)

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Residual income=$280,000

Therefore te company’s residual income for the year will be $280,000

5 0
3 years ago
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