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3 years ago

Think of three example from your own experience, and explain how they demonstrate the concept of diminishing marginal utility.

1 answer:

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Examples:
1.) Having a stain on your rug there's only so much you can get out before your damaging your rug with cleaner

2.) Babysitting and having the child miss there mom, there's only so much you can do to try to calm him/her down

3.) Watering plants, if you haven't watered plant in a long time so you give them extra water, if you keep giving the plant extra water it will eventually drown and die.

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Next week, Super Discount Airlines has a fight from New York to Los Angeles that will be booked to capacity. The airline knows f

ss7ja [257]

Answer:

The cost of underestimating demand is considered a revenue loss that arises due to cancellation of flight costing $125. Hence, cost of underestimating the demand is, $C_{u}$ = $125 .

The cost of overestimating the demand is known as rewards. For example. free round trip ticket worth $250. Hence. cost of overestimating the demand. $C_{o}$ = $250 .

Denote the optimal probability of tickets not being sold by P. The expression is shown below:

$P = \frac{C_{u} }{C_{o} + C_{u} }$

$P = \frac{125}{250 + 125}$

P = 0.3333

Hence. the optimal probability that the tickets are not being sold is 0.33.

Apply the formula, NORMSINV (0.3333) in the Excel spreadsheet

The value of z is obtained as -0.4308. The negative value of z indicates that the number of seats to be overbooked must be less than an average of 25.

As per the stated question, an average of 25 customers cancel or do not show for the flight. Also the standard deviation is 15.

Calculate the number of seats by which company SD should overbook the flight.

= Value of z x Standard deviation

= -0.4308 x (15)

= -6.462

Subtract the value. 6 from the average customers that do not show up for the flight.

25 - 6 = 19 seats

Hence, the airlines should overbook the flight by 19 seats .

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4 years ago

Differential costs are: (CMA adapted) Multiple Choice the difference in total costs that result from selecting one choice instea

user100 [1]

Answer:

The correct answer is letter "A": the difference in total costs that result from selecting one choice instead of another.

Explanation:

Differential cost is the result of subtracting the costs of two different options from where only one is to be selected. The concept is mostly used at the moment of producing when the firm must find out the difference in manufacturing one more unit of a good. Differential costs can be variable or fixed costs.

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4 years ago

The following information pertains to Flaxman Manufacturing Company for March 2018. Assume actual overhead equaled applied overh

Brilliant_brown [7]

Answer:

Gross Margin 84,000

Explanation:

<em><u>Flaxman Manufacturing Company </u></em>

Income Statement for March 2018

Sales revenues 380,000

March 1 Inventory balance Raw materials $ 100,000

Add Raw Materials Purchased $ 120,000

Less March 31 Inventory balance Raw materials $ 60,000

Raw Materials Used 160,000

Costs of direct labor 100,000

Costs of manufacturing overhead 63,000

Total Manufacturing Costs 323,000

Add Work in process 120,000

Cost Of Goods Available for Manufacturing 443,000

Less Ending Work in process 145,000

Cost of Goods Manufactured 298,000

Add Finished goods 78,000

Cost of Goods Available for Sale 376,000

Less Ending Finished goods 80,000

Cost of Goods Sold 296,000

Gross Margin 84,000

By subtracting Cost of Good Sold from Sales Revenue we get Gross Margin.

The cost of goods sold is calculated as shown above.

4 0

4 years ago

Which of the following items is not a part of planning?

Savatey [412]

E. Objectional plan is the answer

4 0

3 years ago

Read 2 more answers

which of the five common reasons why new businesses fail did morgan mention as a significant hurdle for acre landscaping that cr

katovenus [111]

Difficulty hiring and keeping good employees

They talk about it in the video

8 0

1 year ago