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olasank [31]
3 years ago
6

Nick lives in San Diego and loves to eat desserts. He spends his entire weekly allowance on jello and pie. A bowl of jello is pr

iced at $1.25, and a piece of apple pie is priced at $3.75. At his current consumption point, Nick's marginal rate of substitution (MRS) of jello for pie is 3. This means that Nick is willing to trade three bowls of jello per week for one piece of pie per week. Does Nick's current bundle maximize his utility—in other words, make him as well off as possible? If not, how should he change it to maximize his utility?
Business
1 answer:
OlgaM077 [116]3 years ago
4 0

Answer:

Yes.

Explanation:

Market rate of exchange of jello for pie:

= Price of a piece of apple pie ÷ Price of jello

= $3.75 ÷ $1.25

= 3.00

At his current consumption point, Nick's marginal rate of substitution (MRS) of jello for pie = 3

Since MRS = Px/Py, hence, at this point of consumption bundle he is having a maximum level of utility.

Therefore, there is no need to change his consumption bundle because he is already at his maximum level.

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A company reported net income of $290,000. Beginning balances in Accounts Receivable and Accounts Payable were $18,000 and $21,0
NikAS [45]

Answer:

$310,500

Explanation:

The first step is to calculste the increase in account payable

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8 0
3 years ago
The following is an estimated demand function:
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Answer:

The predicted value of sales is $75,037,500.

Explanation:

Given:

Q = 875 + 6XA + 15Y - 5P ……………………..(1)

Where:

Q = quantity sold = ?

XA = Advertising = $100,000

Y = Income = $10,000

P = Price = $100

Substituting the values into equation (1), we have:

Q = 875 + (6 * 100,000) + (15 * 10,000) - (5 * 100)

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Therefore, we have:

Predicted value of sales = Q * P = 750,375 * $100 = $75,037,500

Therefore, the predicted value of sales is $75,037,500.

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