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4 years ago

Explain why taking a monotonic transformation of a utility function does not change the marginal rate of substitution (MRS).

Business

1 answer:

fredd [130]4 years ago

7 0

Explanation:

Monotonic transformation refers to changing the quantity of both the variables in a way that their ranking or order is preserved. Monotonic transformation of a utility function does not change the marginal rate of substitution as the order of preferences remains intact with the monotonic transformation. It's just the level of utility that either increases or decreases with such a transformation. The indifference curve shape remains the same. With monotonic transformation, consumer moves from a lower to higher or higher to lower indifference curve.

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You have collected data on the number of U.S. households actively using online banking and/or online bill payment from 1995 to 2

MAXImum [283]

Answer:

Explanation:

time-series plot is a data visualization graph that illustrates data points at successive intervals or time.

6 0

4 years ago

Mini Corporation factored, with recourse, $600,000 of accounts receivable with Huskie Financing. The agreement met all three con

tatiyna

Answer:

Assets:

Cash (600,000x92%) I552000

Due from factor I18000

Accounts receivable D600000

Liabilities:

Recourse obligation I14400

Equity:

Loss on sale of receivable D44400

Explanation:

First, we have to calculate Loss on Sale of Receivable

Accounts receivable factored 600,000

Finance charge (8% -3%) 5%

Finance charge on receivables (600,000 x 5%) 30,000

Hold back (%) 3%

Due from factor (600,000 x 3%) 18,000

Recourse obligation (600,000 x 2.4%) 14,400

Loss on Sale of Receivable (30,000 + 14,400) 44,400

Now, we show the effect of factoring:

-------------------------------------------------------------------------------------------------------------------------------------------------------

Assets Liabilities Equity

--------------------------------------------------------------------------------------------------------------------------------------------------------

Cash (600,000x92%) I552000 Recourse obligation I14400 Loss on sale of receivable D44400

Due from factor I18000

Accounts receivable D600000

Hope this helps!

6 0

3 years ago

If a bank deposit will double in value in 18 years, the rule of 72 implies that the interest rate on the deposit must equal is a

arlik [135]

Answer:

b. 4 percent

Explanation:

According to the rule of 72, hte number of years required for an investment to be doubled can be obtained by dividing 72 by the interest rate (in percentage). If it takes 18 years for the investment to bouble in value, the interest rate is:

$18=\frac{72}{i}\\i=4\%$

The interest rate on the deposit is 4%.

7 0

4 years ago

You took ACC111 where the Owner's Equity section consisted of Capital and Owner's Withdrawals. Now that you've seen the corporat

kap26 [50]

Answer:

Revenues are closed out to Equity (Retained Earnings) for Corporate.

Explanation:

Actually, for both Sole Proprietor and Corporate, the account that is closed out to Capital or Equity is the difference between the Revenue and the Expenses for the accounting period. This is more specifically referred to as Net Income. This is the bottom-line profit, which is available for distribution to the owners of the entity in the form of capital withdrawals for Sole Proprietorships and dividends for Corporate entities.

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3 years ago

Who invented the selfie stick what purpose does it serve

n200080 [17]

Answer:

In 2005, selfie sticks were invented by Wayne Fromm, and the purpose of the selfie stick was to take photographs or videos by positioning a digital camera device beyond the normal distance of an arm. The device will also allow selfie-takers to affix their phones to a wall and stand away while snapping a picture. After the photo is taken, users will be able to easily remove their phones from the wall without leaving a trace.

Hope it helps you. :)

7 0

3 years ago