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Sergio039 [100]
3 years ago
15

Suppose Lois usually buys two cups of coffee for two dollars each and one scone for two dollars each. If the price of scones fal

ls to one dollar each and she now buys two cups of coffee and two scones, this illustrates the:_______.
A) total utility effect.
B) marginal rate of substitution.
C) substitution effect.
D) real-income effect.
Business
1 answer:
777dan777 [17]3 years ago
4 0

Answer:

The correct answer is D. Real income effect.

Explanation:

Real income is defined as the monetary income of an individual, taking into account the effect of inflation. For example, if a person's nominal salary increases by 10% in one year, and inflation is 6% in that year, the actual income will have increased 4% in that year.

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Which of the following is not one of the four basic forms of organizational structure?
grigory [225]

Dafuq is this dumb site. This is some bull the verified answers where always wrong like dafuq is the point.


5 0
3 years ago
Read 2 more answers
Assume Worldwide Cleaning Service had net income of $ 900 for the year. Worldwide Cleaning​ Service's beginning and ending total
g100num [7]

Answer:

return on assets = 20%

Explanation:

given data

net income = $900

beginning total assets = $4600

ending total assets = $4400

solution

we get here return on assets that is express as

return on assets = \frac{net\ income}{average\ assets} × 100   ............1

here average assets will be

average assets = \frac{4600+4400}{2}

average assets = $4500

put here value we get

return on assets = \frac{900}{4500} × 100

return on assets = 20%

4 0
3 years ago
The managers at Movo Automobile Inc. want to diversify their business by acquiring a consumer electronics company. This acquisit
quester [9]

Answer:

C.principal-agent problems.

Explanation:

The acquisition of Movo Automobile is a typical example of AGENCY COST. Under the Agency cost theory, managers are agents of shareholders who represents principal in the principal - agent problem.

Agency cost is a situation where agents become selfish and pursue strategies and policies that will promote the self interest of agents and cause dissatisfaction to principals.

4 0
3 years ago
1. A business acquaintance promises to deliver a $20 bill to you one year from today. How much should you be willing to pay toda
riadik2000 [5.3K]

Answer and Explanation:

The computation is shown below;

1. The willing amount to pay for the promise should be less than $20 that represents the time value of money

2. Now the present value is

= Received amount × discounting factor at 6% for 3 years

= $1,000 × 0.839

= $839

3. Now the interest rate is

As we know that

Future value = Present value × (1 + rate of interest)^number of years

$1,000 = $863.84 × (1 + rate of interest)^3

rate of interest =5% approx

6 0
4 years ago
Scarlett is graduating from culinary school soon and she often imagines opening her own comfort food restaurant. Her other passi
Inessa [10]

Answer:

d. Franchised operations will take less time on the part of the owner than a regular independently owned operation. If she opens a franchise, she will have more time for creativity in the business, and more time for skiing too.

Explanation:

6 0
3 years ago
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