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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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The additional $10,000 of owners equity after listing on the stock market will be named as common stock. After listing company issues shares for capital investment in it. Common stock is the appropriate term used for every addition in the owners equity. So the correct option is a.common stock.

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Steve borrowed $750 for a new dresser. He made 9 monthly payments to repay the loan. He paid $45 interest. What is his simple in
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If you wish to enter the field of soil and
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6 0
3 years ago
Proposed by Richard Hackman and Greg Oldham, _________ states that work has five core dimensions that impact employee satisfacti
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According to Richard Hackman and Greg Oldham, Job characteristics explain the effects of five core dimensions of employee satisfaction.  

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The research work of Richard Hackman and Greg Oldham mainly relates to the nature of the work with the objective of the working goals to fulfill until it reaches its saturating point. It can be only accomplished only with the mentioned features of the labor like types of skills, the importance of the task, choosing the apt task, self-governance, and the review of the overall performance of the work.

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