1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Rama09 [41]
3 years ago
7

Stella is currently spending all of her weekly income purchasing the two goods that she likes cookies and milk. She is currently

purchasing 10 cookies and 5 cartons of milk. She receives 50 utils from her 10th cookie and 25 utils from her 5th carton of milk. The price of cookies is ​$9​, and the price of milk is ​$3. Is Stella maximizing her​ utility, and if​ not, what should she​ do?
Business
1 answer:
Ivan3 years ago
8 0

Answer:

Stella should consume less of milk and more of cookies to maximize total utility.

Explanation:

The price of cookies is ​$9​, and the price of milk is ​$3.

Stella consumes 10 cookies and 5 cartons of milk.

The marginal utility of 10th cookie is 50 utils and the marginal utility of 5th carton of milk is 25 utils.

Her total utility will be maximized if the ratio of marginal utility and price will be equal for both cookies and milk.

Ratio for cookies

= \frac{MUx}{Px}

= \frac{50}{9}

= 5.55

Ratio for milk

= \frac{MUy}{Py}

= \frac{25}{3}

= 8.33

Since the ratio is higher for milk, it means that Stella should consume less of milk and more of cookies to maximize total utility.

You might be interested in
The grocery industry has an annual inventory turnover of about 13 times. Organic​ Grocers, Inc., had a cost of goods sold last y
s344n2d4d5 [400]

Answer:

What was Organic​ Grocers' inventory​ turnover

ORGANIC  

11,58  INVENTORY TURNOVER

Explanation:

The Organic company compared with the industry works with more inventory than the market, which means that the company is less efficient than the Grocery Industry in Inventory management .

ORGANIC  

11,58         INVENTORY TURNOVER

11.680,000  Cost Of Goods

1.008,880  Average Inventory

32            DAYS IN INVENTORY

To calculate the Inventory Turnover ratio it's necessary to calculate the average inventory of the year ($1,008,880) , take the Total Cost of Goods ($11,680,000) and divide it by the Average Inventory, the result it's the Inventory Turnover of the company, in this case 11,58

To find the days in inventory we have to divide 365 (days of the year) by the Inventory Turnover, 11,58 the result is 32 days.

To have a similar Inventory Turnover as the industry the company needs to low the average inventory to $898,524.

ORGANIC  

13,00       INVENTORY TURNOVER

11.680,000  Cost Of Goods

898,524  Average Inventory

28           DAYS IN INVENTORY

8 0
3 years ago
The original cost of a LIFO inventory item is below both replacement cost and net realizable value. The net realizable value les
serg [7]

Answer:

D. Original cost.

Explanation:

As we know that the inventory should be valued at lower of cost or market value. Also , the market value is the middle amount among the replacement cost, net realizable value, net realizable value - normal profit margin

It can be the replacement cost or net realizable value. We don't have an idea which one is the middle amount

Also, if the original cost is less than the market cost so we assume that the inventory should be valued at original cost

4 0
3 years ago
In the equation Y = C + I + G + NX, Question 4 options: Y represents the economy’s total expenditure. C represents household exp
Zolol [24]

Answer:

Y represents the economy’s total expenditure

Explanation:

The equation Y = C + I + G + NX represents the expenditure approach to calculating GDP.

Y - economy’s total expenditure

C - household expenditures on services and goods

I - investment by firms

G - Government Spending

NX - Net Export

The variables can either be positive or negative .

I hope my answer helps you

7 0
3 years ago
The objective of a statistical process control​ (SPC) system is to A. provide a statistical signal when natural causes of variat
marysya [2.9K]

Answer:

D. provide a statistical signal when assignable causes of variation are present

Explanation:

The objective of a statistical process control​ (SPC) system is to provide a statistical signal when assignable causes of variation are present

7 0
3 years ago
Which of the following would NOT cause a shift in supply? A. changes in the price of inputs B. changes in the price of other goo
adell [148]

Answer:

C.

Explanation:

<em>The correct answer would be changes in consumer input.</em>

The supply of a good can be influenced by changes in the price of inputs for that goods, changes in the price of substitute goods, as well as changes in technology that positively or negatively affect the production of such goods.

What will not affect the supply of any good is changes to consumer's input. An input generally referred to a substance that is required to produce an output. Unless the consumer of a good is also the producer of that good, a consumer's input will not impact the supply of a product.

The correct option is C.

4 0
3 years ago
Other questions:
  • Ricardo conducts a survey to learn where consumers get information for buying used cars. This is an example of _____.
    7·1 answer
  • Buckson Framing's cost formula for its supplies cost is $1,350 per month plus $18 per frame. For the month of June, the company
    8·1 answer
  • Choose all that apply.
    6·2 answers
  • At a price $4 for good x, a firm is willing to supply 1,400 units of x. for a price of $5 for good x, the firm is willing to sup
    5·1 answer
  • . Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant a
    10·2 answers
  • Government inputs, especially the 1825 Erie Canal and subsequent projects like the Chesapeake and Ohio Canal, created an economi
    9·1 answer
  • In the bond market, the bond demanders are the ________ and the bond suppliers are the ________.
    9·1 answer
  • Indicate how each of the following would shift the (1) marginal-cost curve, (2) average-variable-cost curve, (3) average-fixed-c
    6·1 answer
  • In the argument for why perfect competition is allocatively efficient, the price that people are willing to pay represents the g
    10·2 answers
  • Shirley was laid off by her employer. What benefit is she entitled to receive?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!