Answer:
Options C and E
Only Nick and Jake are optimising over his choice of fruit?
Explanation:
The marginal utility obtained from the purchase of a product is the amount of satisfaction derived from purchasing an additional unit of the product.
The utility is maximised when the satisfaction in terms of marginal utilities obtained from each product is equal to each other.
We obtain this simply by dividing the marginal utilities for each fruit by their price, and comparing them.
Dmitiri:
Apples: 8/1 =8
Pears: 10/2 =5
8/1 is not equals to 10/2
Frances:
Apples: 7/1 =7
Pears: 16/2 =8
7 is not equals to 8
Jake:
Apples: 6/1 =6
Pears: 12/2 =6
The marginal utility is equal hence Jake's choice is optimal
Latasha:
Apples: 5/1 =9
Pears: 9/2 =4.5
9 is not equals to 4.5
Nick:
Apples: 4/1 =4
Pears: 8/2 =4
The marginal utility is equal hence Nick's choice is optimal
Answer:
Alice should exercise the option and pay $100,000 for the land.
Explanation:
As Alice has paid $20,000 for the option to acquire the land of ten acres.
In 1985, the worth of land was $120,000 but in 1992, the worth changed to $110,000. She should exercise the option because the inflation rate is the reason in the decrease in the worth of land. By buying the land, she can utilize the land by investing in it instead of holding the money as it will depreciate. By investing the money, she will get the profit and will increase in her wealth. Moreover, she can use other options by selling to another person after adding some value to the land and can get the profit.
Answer:
The cost of an slice of pizza is $3.94
Explanation:
Hi, we have to construct 2 equations with the information of the problem, the first one is " 8 slices of pizza and 7 soft drinks for $45.10".
And the second one, when "The second group bought 6 slices of pizza and 5 soft drinks for $33.34" is.
Where: P = pizza slices and D= soft drinks
We need to substract one equation from the other, but firs we need to equal one of the variables. In order to do so, we multiply our first equation by 5 and the second one for 7, therefore we get.
First equation
And the second one:
And now, we substract them and solve.
The cost of a slide of pizza is $3.94
In case you needed to find the cost of the soft drink, we just substitute P for 3.94 in any of the initial equations, that is:
The cost of a soft drink is $1.94
Best of luck.
