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4 years ago

What is the difference between total utility and marginal utility?

1 answer:

6 0

The main difference between total utility and marginal utility is that total utility refers to the total amount of satisfaction the consumer receives from a good. Marginal utility is the added satisfaction they receive from consuming an idiot unit of the same good.
We all buy something and hope to feel satisfied from purchasing that good, that is essentially what total and marginal utility are measuring. This allows economists and businesses to track how satisfied consumers are from consumption of a product.

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Carpenters, Inc., a manufacturing company, acquired equipment on January 1, 2017 for $ 520 comma 000. Estimated useful life o

san4es73 [151]

Answer:

Annual depreciation= $47,618

Explanation:

Giving the following information:

Purchasing price= $520,000

Useful life= 7 years

Residual value= $20,000

New useful life= 9 years

First, we need to determine the annual depreciation and accumulated depreciation before January 2020.

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (520,000 - 20,000)/7= 71,429

Accumulate depreciation= 71,429*3= $214,287

New annual depreciation:

Book value= 520,000 - 214,287= 305,713

Annual depreciation= (305,713 - 20,000) / 6

Annual depreciation= $47,618

5 0

4 years ago

Determine the depreciation base of Marigold’s new machine. Marigold uses straight-line depreciation.

m_a_m_a [10]

Answer:

$35,464

Explanation:

Calculation for the depreciation base of Marigold's new machine

Purchased machine $29,120

Add:Title fees $200

County property tax $130

Shipping charges for delivery $520

Local contractor $5,494

Depreciation base $35,464

Therefore the Depreciation base of Marigold's new machine

will be $35,464

6 0

4 years ago

Flint Corporation purchased from its stockholders 5,200 shares of its own previously issued stock for $254,800. It later resold

Marizza181 [45]

Answer:

The journal entries are as follows:

(i) Cash A/c(1,825 × $52) Dr. $94,900

To Treasury stock(1,825 × $49) $89,425

To paid in capital from Treasury stock(1,825 × $3) $5,475

(To record the purchase at $52)

(ii) Cash A/c(1,825 × $47) Dr. $85,775

paid in capital from Treasury stock(1,825 × $2) A/c Dr. $3,650

To Treasury stock(1,825 × $49) $89,425

(To record the purchase at $47)

(iii) Cash A/c(1,550 × $41) Dr. $63,550

paid in capital from Treasury stock A/c Dr. $1,825

Retained earnings A/c (1,550 × $8) Dr. $10,575

To Treasury stock(1,550 × $49) $75,950

(To record the purchase at $41)

3 0

3 years ago

A positive externality causes A. the social benefit from consuming the good to be less than the private benefit. B. the social b

Nastasia [14]

Answer:

D. None of the above.

Explanation:

By consuming a good consumers get a benefit that is relative and varies according to the needs and value that the consumer gives to that good. Thus, consuming the same product can bring distinct benefits to different consumers. In other words, individual benefit is a subjective criterion.

Positive externality, in turn, means the benefit to all society from an economic activity that positively impacts society. For example, if a software company adopts a tree planting policy for each software unit sold, the social benefit of the tree is a positive externality. This tree will do good for society as a whole and not just for the consumer who bought the product from that company.

Thus, because of the sub-criteria of social and individual benefit criteria, it cannot be stated that any benefit will be greater or less than the other, unless the problem quantifies each benefit.

3 0

3 years ago

QUESTION 01 (10 points) ‐ Coefficient of Variation (CV) We need to compare volatility of multiple assets. As the assets have dif

barxatty [35]

Answer:

a, Coefficient of variation

= Standard deviation x 100

Mean

b, Coefficient of variation

Asset A

Coefficient of variation

= $23.48 x 100

$181.92

= 12.91%

Asset B

Coefficient of variation

= $0.09 x 100

$0.38

= 23.68%

Asset C

Coefficient of variation

= $27.31 x 100

$247.19

= 11.05%

Asset C is least volatile while Asset B is most volatile

Explanation:

Coefficient of variation is the ratio of standard deviation to mean (expected return) multiplied by 100. It is used to measure the volatility of assets. Asset C has the least coefficient of variation, thus, it is the least volatile. Asset B has the highest coefficient of variation, which implies that it is the most volatile.

4 0

4 years ago

What is the difference between total utility and marginal​ utility?

What is the difference between total utility and marginal utility?