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evablogger [386]
4 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]4 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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Answer:

increase

Explanation:

Transaction cost is the cost needed for every exchange. This cost can be external or internal. External transaction cost comes from the cost to do an exchange with a second party while internal cost comes from the company itself.  

The Martinez Legal Firm acquired a competitor so their business size will increase for sure. Larger businesses will become more complex and need more management. These will, in turn, increase the internal transaction cost.

6 0
4 years ago
According to the consumer decision process, after consumers recognize the need for a product, they then engage in:.
lions [1.4K]

Answer:

An information search.

What is information search?

is a stage in the Consumer Decision Process during which a consumer searches for internal or external information.

4 0
3 years ago
What are the two most important cost considerations in queuing​ problems?
Tatiana [17]
B is the answer I think
3 0
3 years ago
True or false 1. Satisfying customer wants at a reasonable price is important to business success.
Marina CMI [18]
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5 0
3 years ago
Selected Balance Sheet Information
goldenfox [79]

Answer:

$47,000

Explanation:

Computation for the net cash flows from operating activities using the indirect method.

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Adjustments to reconcile net income to

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($21,000-$18,000)

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(15000-10000)

Decrease in income taxes payable -$1,500 ($1,000-$2,500)

Net cash flows from operating activities $47,000

Therefore the net cash flows from operating activities using the indirect method is $47,000

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3 years ago
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