Consider the optimal consumption bundle for a consumer who is choosing between two goods, x and z, which she considers perfectly
1 answer:
Answer: Please refer to the explanation section
Explanation:
When a consumer is choosing between two goods which are considered to be perfect substitutes , the optimal bundles choice will be the number of good x and good z that will yield maximum utility is found the ratio of Marginal utility of good x and marginal utility of good z equals the ratio of the Price of good x and the price of good z or The Marginal utility of good x per dollar must be equal to the marginal utility of good z per dollar.
Marginal Utility of good x = MUx
Marginal Utility of Good z = MUz
Utility function = U(qx,qz)
qx and qz maximises U(qx,qz) when
=
or
When she receives the same marginal utility per dollar in good x and good y, utility is maximized
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Answer:
Simple rate of return is 5.8%
Therefore option (a) is correct option.
Explanation:
It is given that purchase cost = $793800
Company saving per year = $133000
Yielding = $21200
Annual depreciation = $88200
Annual profit = $133000 - $88200 = $44800
Net investment is equal to = $793800 - $21200 = $772600
Simple rate of return
= 5.8%
Therefore simple rate of return is 5.8 %
So option (a) is correct.
Answer:
The answer is: A) is the sum of all individual demand curves.
Explanation:
By definition the market curve is the sum of all individual demand curves in a market. It shows the total quantity of goods that consumers demand (are willing and able to purchase) at varying price points. Usually the curve shows a downward slope since consumer demand decreases as the price of a good increases.
