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3 years ago

The law of diminishing marginal utility

Business

1 answer:

Verizon [17]3 years ago

8 0

Answer:

The correct answer is option 2.

Explanation:

The law of diminishing marginal utility states that keeping other things constant, as more and more units of a commodity are consumed, it will lead to a decrease in the marginal utility derived from the consumption of each additional unit.

In other words, if a consumer goes on consuming more and more of a commodity, the additional satisfaction derived from the consumption of each unit will decrease.

The total utility will be maximized when the marginal utility from the consumption becomes zero.

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A small factory produces toilet paper. The annual demand is 360,000 units, and the company produces toilet paper in batches. On

Valentin [98]

Answer:

26,833 units

Explanation:

Optimal production quantity is the quantity at which business incur minimum cost. This is the level of production per batch where the incur the lowest cost.

EOQ =

C = Carrying cost = 10 / 100 = $0.1 per unit

S = Setup cost = $100

D =Annual Demand = 360,000

EOQ = $\sqrt{ \frac{2 X S X D}{C} }$

EOQ = $\sqrt{ \frac{2 X 100 X 360000}{0.1} }$

EOQ = 26,833 units

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3 years ago

A father wants to save for his eight?year?old son�s college expenses. The son will enter college 10 years from now. An annual am

Ganezh [65]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

The son will enter college 10 years from now. An annual amount of $40,000 in constant dollars will be required to support the son's college expenses for four years.

The future general inflation rate is estimated to be 6% per year, and the market interest rate on the savings account will average 8% compounded annually

A) We need to find the present value for each 40,000-year expense.

Formula= FV/(1+i)^n

1: PV= 40,000/(1.06)^10= 22,335.80

2: PV= 40,000/(1.06)^11= 21,071.50

3: PV= 19,878.77

4: PV= 18,753.56

B) Total final value= 160,000

PV= 160,000/1.06^10= $89,343.16

C) We need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (160,000*0.06)/[(1.06^10)-1]= $12,138

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3 years ago

Look at the following financial ledger which items listed on the ledger represent credits

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Answer:

The answer is B. Gift and online auction I hope this helps

Explanation:

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3 years ago

It is not possible to create a per unit MCS if you are given total revenue and selling price. True False

tekilochka [14]

Answer:

True

Explanation:

A per unit MCS cannot be created if you are given total revenue and selling price because per unit MCS is created by dividing the given total revenue by the total units of products ( for revenue per unit of product )

And also dividing the total cost by the total units of products ( for cost per unit of product ) hence the absence of the number of products will make it impossible to create a per unit MCS.

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3 years ago

An entrepreneur borrows $500,000 today. The interest rate is 11.5%. If the entrepreneur makes annual payments of $70,000 per yea

love history [14]

Answer:

After 18.44 year loan will be paid

Explanation:

We have given an entrepreneur borrows $500,000 today.

So total amount is $500000

Annual payment is of $70000

Rate of interest r = 11.5 %

We have to find the time period