Look at the picture, which one is the correct answer?

A consumer makes purchases of an existing product X such that the marginal utility is 10 and the price is $5. The consumer also

Novosadov [1.4K]

Answer:

Increase the consumption of product Y and decrease the consumption of product X.

Explanation:

Utility-maximizing rule states that a consumer is maximizing its utility at a point where the marginal utility per dollar spent equal for both the products.

Marginal utility per dollar for Product X:

$\frac{MU_X}{P_X}=\frac{10}{5}$

= 2 utils per dollar

Marginal utility per dollar for Product Y:

$\frac{MU_Y}{P_Y}=\frac{8}{1}$

= 8 utils per dollar

Here, the utility-maximizing rule suggests that this consumer should consume more of product Y and less of product X.

4 0

4 years ago

Lincoln Corporation used the following data to evaluate their current operating system. The company sells items for $ 12 each an

bezimeni [28]

Answer:

The static budget variance of revenues is 36000 Unfavorable

Explanation:

Lincoln Corporation

Static Budget Variances

Actual Budgeted Static Budget

Units sold Units sold Variance

42,000 units 39,000 units

Sales Price $ 12 $ 12

Revenues 504000 468000 36000 Unfavorable

Variable costs $ 168,000 $ 158,000 10,000 Unfavorable

Fixed costs $ 46, 000 $ 48,000 2000 Favorable

The Static Budget Variance is calculated by subtracting the budgeted amounts from the actual amounts.

In a static budget the actual amounts are not changed for different activity levels. Instead the actual is compared with the budgeted so that exact variance is obtained for an organization.

7 0

3 years ago

If estimated annual factory overhead is $480,000; overhead is applied using direct labor hours; estimated annual direct labor ho

VashaNatasha [74]

Answer:

Undeapplied overhead= $200

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 480,000 / 200,000

Predetermined manufacturing overhead rate= $2.4 per DLH

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 2.4*17,000

Allocated MOH= $40,800

Finally, the over/under allocation:

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 41,000 - 40,800

Undeapplied overhead= $200

4 0

3 years ago

Brock recently graduated from college and began his job as a media analyst earning $50,000 per year. He wants to start saving fo

Oliga [24]

Answer: discretionary

Explanation:

3 0

2 years ago

Which is cheaper: eating out or dining in? The mean cost of a flank steak, broccoli, and rice bought at the grocery store is $13

Maru [420]

Answer:

Null hypothesis: The mean price of restaurant meal is the same as fixing a comparable meal at home.

Alternate hypothesis: The mean price of restaurant meal is less than fixing a comparable meal at home.

Explanation:

A null hypothesis is a statement from a population parameter which is either rejected or accepted (fail to reject) upon testing.

An alternate hypothesis is also a statement from the population parameter that negates the null hypothesis and is accepted if the null hypothesis is proven false.

8 0

3 years ago