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Afina-wow [57]
3 years ago
11

Gillian is consuming her optimal consumption bundle of peanuts and raisins. The marginal utility associated with the last peanut

she consumes is 4 utils, and the marginal utility associated with the last raisin is 2 utils. What must be the price of peanuts relative to that of raisins?
Business
1 answer:
olchik [2.2K]3 years ago
3 0

Answer: The price of peanuts realitve to that of raisins must be 2.

Explanation: Mathematically, relative prices are defined as:

Relative price of Good A with respect to Good B = Price of A / Price of B

So: Relative price of peanuts respect to raisins = Price of peanuts / Price of raisins

...

<u>Relative price of peanuts respect to raisins = 4 / 2 = 2.</u>

<u></u>

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What is the best way to answer the question "tell me a little about yourself
Nata [24]

Answer:

Tell them what you stand for and what you have done. Tell them what you want to do.

Explanation:

7 0
3 years ago
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Assuming the issuer does not default, can capital gains or losses be a component of the holding period return on a zero-coupon b
tamaranim1 [39]

Yes, because the bond's yield to maturity may have changed.

Do zero coupon bonds have a yield?

Without accounting for any interest payments, zero-coupon bonds always demonstrate yields to maturity adequate to their normal rates of return. The yield to maturity for zero-coupon bonds is additionally known as the spot rate.

What is the difference between a zero-coupon bond and a coupon bond?

Regular bonds, which also are called coupon bonds, pay interest over the lifetime of the bond and also repay the principal at maturity. A zero-coupon bond doesn't pay interest but instead trades at a deep discount, giving the investor a profit at maturity once they redeem the bond for its full face value.

Advantages Of Zero-Coupon Bond:

The Zero Coupon bonds eliminate the reinvestment risk. Zero-Coupon bonds don't let any periodic coupon payments, and hence a hard and fast interest on Zero Coupon bonds is guaranteed.

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3 0
2 years ago
Your storage firm has been offered 100,000 in one year to store some goods for one year. Assume your costs are $95,000, payable
Alexandra [31]

Answer:

We should not take the contract

Explanation:

Net present value = Initial investment + Present value of cash inflows

Net present value = -95000 + 100000/1.08

Net present value = -2407.41

Thus, the contract should not be taken because the NPV is negative

8 0
3 years ago
Lever Brothers is considering an idea for a new liquid laundry detergent that contains a whitening agent. The company presented
Harlamova29_29 [7]

Answer:

<em>e. concept testing.</em>

Explanation:

Concept testing is the method of determining the likely reaction of the consumer to a product idea prior to advertising.

The purpose of concept testing is to verify that a product idea is superior over competitive solutions to help consumers get a job done through a work-to-be-done lens.

We need to know what measures consumers use to assess the successful implementation of the work-to-be-done to make this decision.

The concept testing procedures succeed because such consumer measures are developed around them.Using this approach is the only idea test method and is an important step in our cycle of development, Outcome-Driven Development (ODI).

3 0
3 years ago
Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 150 employees and occupies 43,000
BaLLatris [955]

Answer:

b. $98,625.

Explanation:

Maintenance budget : $99,000

Assembly area: 43,000

Painting Area: 29,000

Maintenance budget allocated to assembly (M):

M=99,000*\frac{43,000}{43,000+29,000}\\M=59,125

Administration budget : $79,00

Assembly employees: 150

Painting employees: 150

Administration budget allocated to assembly (A):

A=79,000*\frac{150}{150+150}\\M=39,500

Therefore, the total amount of indirect factory expenses that should be allocated to the Assembly Department for the current period is:

A = M + P\\A= 59,125 +39,500\\A=98,625

6 0
3 years ago
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