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Arlecino [84]
3 years ago
10

Mrs. Arnold is spending all her money income by buying bottles ofsoda and bags of pretzels in such amounts that the marginal uti

lityof the last bottle is 60 utils and the marginal utility ofthe last bag is 30 utils. The prices of soda and pretzels are $.60per bottle and $.40 per bag respectively. It can be concludedthat:
A.the two commoditites are substitute goods.
B.Mrs Green should spend more on pretzels and less on soda.
C.Mrs. Green should spend more on soda and less on pretzels.
D.Mrs.Green is buying soda and pretzels in theutility-maximizing amounts.
Business
1 answer:
AleksAgata [21]3 years ago
4 0

Answer:

The answer is C. Mrs. Green should spend more on soda and less on pretzels.

Explanation:

Marginal utility-price ratio = marginal utility of a generic good  / price of a generic good

Soda Marginal utility-price ratio= 60/ 0.60 = 100 utils per dollar

Pretzels Marginal utility-price ratio = 30/ 0.40 = 75 utils per dollar

Mrs. Arnold should choose  soda as it has a higher marginal utility-price ratio than that of  pretzels.

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formed a valid contract because Rachel's outward expressions showed the formation of a contract.

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In contract, outward expressions refers to a situation when both parties has directly communicate the terms of a certain transaction and agreed upon it.

The contract is considered as 'valid' and considered to be a verbal agreement as soon as Rachel proposed a price and Julius agreed upon it.

One thing to remember, Even though this contract is considered as valid , it would be hard for Julius to held Rachel accountable to court since he has no way to proof that the verbal agreement has been made.

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Statement Of Owner's Equity Jay Pembroke started a business in April. Prepare a Statement of Owner's Equity using the following
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Answer:

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2 years ago
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My recommendation would be: communicate directly to the supervisor to clarify the intend of the email

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