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satela [25.4K]
3 years ago
15

If the price of good A​ falls, then when the consumer makes his new​ utility-maximizing choice​ _______. A. the quantity of the

good A consumed will decrease B. the marginal utility from consuming good A will be lower than before C. the marginal utility from all other goods will be lower than before D. the quantity consumed of all other goods will increase
Business
1 answer:
skad [1K]3 years ago
4 0

Answer: Option (B) is correct.

Explanation:

Correct option: The marginal utility from consuming good A will be lower than before.

This due to the law of diminishing marginal utility. When the price of good A falls as result consumer will buy more quantity of good A. But according to the  law of diminishing marginal utility, as the consumers consumes more and more quantity of good, the utility derived from an additional unit goes on diminishing.

Therefore, the marginal utility from consuming good A will be lower than before.

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Consider the following two countries. Assume they produce only these two goods. Note that productivity is now measured in how ma
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Answer:

A. 1/3 computers

B. 0.6 computers

Explanation:

A. The opportunity cost incurred by the US to make cars is the number of computers it would have to give up to make a car.

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B. The same logic applies to Japan. They can either make 10 cars or 6 computers.

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3 years ago
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The present value of free cash flows is $15 million and the present value of the horizon value is $100 million. Calculate the pr
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Answer:

$115 million

Explanation:

Calculation for the present value of the business.

Using this formula

Present value=Free cash flow+Horizon value

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Answer:

It provides definite objective for evaluating performance

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