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liubo4ka [24]
3 years ago
11

Suppose Paul has chosen a combination of two goods, A and B, such that the marginal utility per dollar spent for good A (MU A/P

A) is .6 and the marginal utility per dollar spent for good B (MU B/P B) is 1. To increase utility with the same amount of money, Paul should:
Business
1 answer:
Makovka662 [10]3 years ago
5 0

Answer: Increase the number of B consumed and decrease the number of A consumed.

Explanation: The utility maximization rule basically states that if the marginal utility gained from product A is greater than the marginal utility gained from product B, then more of product A should be consumed and less of product B should be consumed in order to maximize the utility per unit of money spent.

Therefore, in order for Paul to increase utility with the same amount of money, he should increase spending on the product that offers the higher marginal utility, meaning that he should spend more on the product that offers more satisfaction.

The product that offers more satisfaction in the scenario above is product B, because its marginal utility per dollar is 1, which is greater then the marginal utility of product a of 0.6 marginal utility per dollar.

Hence, Paul should increase consumption of product B and decrease consumption of product A.

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Cobe Company has already manufactured 23,000 units of Product A at a cost of $25 per unit. The 23,000 units can be sold at this
zysi [14]

Answer:

It is more profitable to continue processing the units.

Explanation:

Giving the following information:

Product A:

Units= 23,000

Selling price= $420,000

Continue processing:

Product B= 6,000 units sold for $106 each

Product C= 11,900 units sold for $52 each

Total cost= $280,000

We need to calculate the effect on the income of both options and choose the most profitable on<u>e. We will not take into account the first costs of Product A because they are irrelevant.</u>

Option 1:

Effect on income= $420,000

Option 2:

Effect on income= (6,000*106) + (11,900*52) - 280,000

Effect on income= $974,800

It is more profitable to continue processing the units.

7 0
3 years ago
What is the difference between the personal contact model of communicating on the Web and the mass media approach?
stellarik [79]

Answer:

Social media relates to all the technology that makes information sharing possible via the Internet. It is largely based on subject matter that users create and share.

Explanation:

Mass media approach: One-to-many

Personal contact approach: one-to-one.

Difference: Sellers are involved in mass media; buyers exchange information passively. Seller and buyer are both active on PC.

It is also the primary communication means used to meet the vast majority of the population. Newspapers, journals, radio, TV and the internet are the most prominent mass media channels.

6 0
3 years ago
Joe, a human resources specialist for Jersey Office Supplies Co., rides along with the furniture delivery people to observe the
Svetllana [295]

Complete question:

Joe, a human resources specialist for Jersey Office Supplies Co., rides along with the furniture delivery people to observe the problems they were encountering and what activities they were required to perform. Joe was performing a:

A. personality test

B. performance appraisal

C. BARS

D. job analysis

Answer:

Joe was performing a job analysis

Explanation:

Job analyzes are a set of protocols for defining the contents for the job and the features or criteria required for the execution of the tasks. Job analytics provide employers with knowledge that helps to recognize which personnel is ideally suited to particular work.

An example of a job analysis model might list tasks or activities of the job and determine each performance level. Within this way, the role of job analysis is critical. Many companies typically take the same generic approach without details on the task description. All workers are tested in a similar set of features or characteristics presuming that they are required for all work.

6 0
3 years ago
1. How are people rational when they make choices?
baherus [9]
Rational choice theory states that individuals rely on rational calculations to achieve outcomes that are in line with their personal objectives. These decisions provide people with the greatest benefit or satisfaction — given the choices available — and are also in their highest self-interest.
3 0
3 years ago
A company's income statement showed the following: net income, $136,000 and depreciation expense, $33,600. An examination of the
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