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artcher [175]
3 years ago
13

Suppose apples come in two quality​ levels, low quality and high quality. At a store in the​ apple-growing region, the price of​

low-quality apples is ​$1 per pound, and the price of high-quality apples is $4 per pound.
Timmy lives in the apple-growing region and buys 8 pounds of each type. His marginal utility of low-quality apples is 3 utils and his marginal utility of high-quality apples is 12 utils.
1. Is Timmy maximizing his utility?
Business
1 answer:
dedylja [7]3 years ago
5 0

Answer:

Yes.

Explanation:

Given that,

Price of​ low-quality apples = ​$1 per pound

Price of high-quality apples = $4 per pound

Marginal utility of low-quality apples = 3 utils

Marginal utility of high-quality apples = 12 utils

Equimarginal:

(Marginal utility of low quality apples ÷ Price per apple) = (Marginal utility of high quality apples ÷ Price per apples)

(3 utils ÷ $1) = (12 utils ÷ $4)

3 = 3

Yes, Timmy is maximizing his utility as his equimarginal utility is same for both the goods as shown above.

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You are the store manager at a large furniture store, FurnitureLand. One of your products is a study desk. The demand for study
babunello [35]

Answer:

safety stock = 33 desks

reorder point = 133 desks

Explanation:

safety stock = (Z-score x √lead time x standard deviation of demand) + (Z-score x standard deviation of lead time x average demand)

  • Z-score for 98% confidence level = 2.326
  • standard deviation of demand = 10
  • √lead time = √2 = 1.414
  • we are not given any standard deviation of lead time, so we can assume that it is 0

safety stock = (2.326 x 1.414 x 10) + (2.326 x 0 x 50) = 32.89 ≈ 33 desks

reorder point = lead time demand + safety stock = (50 x 2) + 33 = 133

4 0
3 years ago
If government spending increased by $5 billion and the expenditure multiplier is 3.2, what would be the increase in the real GDP
aleksley [76]

The increase in real GDP when government spending increases is $16 billion.

<h3>What is the increase in real GDP?</h3>

Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.

Increase in Real GDP = multiplier x increase in government spending

$5 billioin x 3.2 = 16 billion

To learn more about GDP, please check: brainly.com/question/15225458

3 0
2 years ago
What type of expense is your rent each month?
Alisiya [41]
It is a routine expense because you know that you will be paying it monthly.
3 0
3 years ago
Read 2 more answers
In a firm, if the employees attend a training program, then the time to assemble one unit reduces by 10%. Training program will
fomenos

Answer:

The answer is: C) increase both labor and multifactor productivity

Explanation:

An increase in labor productivity happens when an employee can produce a larger number of units using the same amount of time. Labor productivity is part of the total factor productivity (TFP) or the multifactor productivity (MFP). So when the total labor productivity increases, so will the multifactor productivity.

Usually when one type of productivity increases, e.g. labor productivity, other factors of production will also increase their productivity, e.g. capital productivity will increase also. For example, if the worker is trained better, he will produce 2 more units using the same machinery, so because the labor productivity increased, the capital productivity also increased, i.e. the same machine can now produce two more units. That is why productivity is measured as multifactor productivity (or total factor productivity).

8 0
3 years ago
When the seller requires that only certain dealers carry its products and also that these dealers not handle competitors' produc
RUDIKE [14]

Answer:

exclusive dealing

Explanation:

Exclusive dealing -

It is the method , where a deal is set up between a specific supplier and the wholesaler or the retailer , where the no other distributor would be able to receive the supply , is referred to as exclusive dealing.

In this scenario no other dealer can not handle the product in any case.

Hence , from the scenario of the question,

The correct option is exclusive dealing .

3 0
3 years ago
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