Answer: Option A
Explanation: In simple words, intertemporal decision making refers to the study of how the decision made by an individual today affects the choices that he or she have in the future. It is based on the assumption that less consumption today will bring significant increase in consumption tomorrow.
In the given case, despite of having enough income to lead a healthy lifestyle in present,Lee decided to save his money in the future. This will lead to choices fro him that will give him higher utility.
Hence from the above we can conclude that the correct option is A.
Answer:
The answer is: D) $1.75
Explanation:
Consumer surplus is the difference between the maximum price that a consumer is willing to pay for a good and the actual price paid for the good.
Larry, Alan and Ryan were all willing to pay more for a bottle of soda than the actual price of the soda.
- Larry's consumer surplus = $2 - $1 = $1
- Alan's consumer surplus = $1.50 - $1 = $0.50
- Ryan's consumer surplus = $1.25 - $1 = $0.25
The total consumer surplus is $1 + $0.50 + $0.25 = $1.75
Answer:
Total= 3,120 units
Explanation:
Giving the following information:
production budget:
January= 3,000 units
February= 4,200 units
March= 5,000 units
The company wants to end each month with ending finished goods inventory equal to 10% of the next month’s sales.
Beginning inventory= 300 units.
To calculate the production for any month, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
<u>January:</u>
Sales= 3,000
Desired ending inventory= (4,200*0.1)= 420
Beginning inventory= (300)
Total= 3,120 units
The idea that firms will get the most for their money when they pay wages higher than the equilibrium wage is called optimal-wage theory.
<h3>What is
optimal-wage theory?</h3>
Optimal efficiency wage is one that that do occur when marginal cost of an increase in wages can be attributed to the marginal benefit associated to productivity.
Hence, idea that firms will get the most for their money when they pay wages higher than the equilibrium wage is called optimal-wage theory.
Learn more about optimal-wage theory at:
brainly.com/question/11555274
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