Answer:
B. purchasing more machinery.
Explanation:
Marginal return can be defined as the return rate which a firm or a business experiences when they increase the amount of variable input that is been used in that firm or organisation.
It is important to note that all other input apart from the variable input remains constant.
Examples of variable inputs that a firm or organisation can increase
a. Purchase of more machinery
b. Increasing the amount of labour in the firm.
Answer:
using the barter system.
the barter system is a system that exchange 1 item to another.
this kind of technique is quite risky because sometimes you got either more or less valuable item.
but for me i prefer using the barter system.
Answer:
Therefore, Olivia should buy 10 apples and 8 bananas to maximize her utility.
Explanation:
Let A represent the number of apples bought and B represent the number of bananas bought. Therefore since Olivia has $4 to spend:
0.2A + 0.25B = 4 (1)
Also, the tangency condition can be used to find the optimal amount of A to relative to B. It is give as:
Put B = 0.8A in equation 1:
0.2A + 0.25(0.8A) = 4
0.2A + 0.2A = 4
0.4A = 4
A = 10
B = 0.8(A) = 0.8(10) = 8
Therefore, Olivia should buy 10 apples and 8 bananas to maximize her utility.