When John bought a phone with a camera, he chose one that could take 12-megapixel pictures over one that could take 8-megapixel
pictures. John felt the picture resolution of the phone he bought was much better than the alternative choice. In the given scenario, John's perception is most likely affected by
When prepaid insurance (or any other prepaid expense) is adjusted at year end in order to record accrued expenses, financial statements are affected in the following way:
income statement: costs increase, decreasing profits
balance sheet: assets and equity decrease
cash flow statement: cash from operating activities increases
Price: $20, how many units to maximize the total utility
Let X is the number of units we need to find
As we know that, the law of equal-marginal utility a consumer spends his or her income among goods so that utilities receive from the amount spent is equal. So we use a simple rule of three:
