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.
Answer:
B
Explanation:
- The Semiannually total interest Payable will be calculate as
30*2 = 60 Semiannual Times Payments
- Interest Payments
$9,000,000*8%/2=$360,000
- So the Total payments will be paid semiannually 60 times $360,000 with the principle amount $9,000,000
Answer:
$12,197
Explanation:
I guess that the correct numbers are because otherwise it would be a ridiculously large number:
- n = 6 years or 24 quarters
- principal = $6,000
- interest rate = 3% quarterly
Future value = principal x (1 + interest rate)ⁿ = $6,000 x (1 + 3%)²⁴ = $6,000 x 1.03²⁴ = $6,000 x 2.0328 = $12,196.80 ≈ $12,197
Answer:
John C. Bogle is the founder of the group however it is owned by its customers/clients through the funds managed by the company.
It allows the company to exhibit extra drive and zeal to grow its customer base for future purpose. This is because of the company being highly dependent on its customers for its sustainability.
Answer: C. Ordinal
Explanation:
Ordinal Data is a statistical method of measurement that is able to categorize variables as well as order them in a certain manner. Ordinal data however is unable to tell the scale of difference in the different variables.
The Investment Firm was able to categorize the different companies and it was as well able to order them with these classifications because as we know, "AA" will be higher than "B".
However we do not know just how different in quality these 2 bonds are because there is no measurement scale.
This is therefore an Ordinal level data.