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yan [13]
4 years ago
14

Sharon purchases two products with a given fixed budget, orange juice and soda. Her marginal utility from orange juice is 60 and

her marginal utility from soda is 30. The price of a bottle of orange juice is $2.00 and the price of soda is $1.00. These data suggest that Sharon ___________.
Business
1 answer:
yuradex [85]4 years ago
3 0

Answer:

Sharon is trying to maximize her marginal utility under the fixed budget.

Explanation:

She is buying exactly twice as many orange juices than sodas, because her marginal utility from juice is twice as much as her marginal utility from soda (60 x 30).

She is considering the marginal utility above the price when making her purchase decisions, because while orange juice provides more utility, it is also more expensive than sodas ($2.00 per bottle vs $1.00 per bottle).

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1. The interest rate that the Federal Reserve Bank (the Fed) charges member banks for loans is known as the____________ .
horsena [70]

Answer:

1. Discount rate.

2. Increase.

Explanation:

A Federal Reserve Bank is one of the twelve regional banks of the Federal Reserve System in the United States of America. The Federal Reserve Banks are saddled with the responsibility of implementing the monetary policy designed and provided by the Federal Open Market Committee (FOMC).

Federal Reserve System also known as the Fed, was created under the Federal Reserve Act which was passed by US Congress in 1913. The Fed began its operations in the year 1914. It's a financial institution which was founded by President Woodrow Wilson and was primarily aimed at backing each banks in order to put a definitive end to the bank panics of the 1800s.

Furthermore, just like all central banks, the Fed is a government financial institution which is saddled with these responsibilities;

1. Controlling the issuance of currency in United States of America: the Fed promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.

2. Providing banking services to all the commercial banks in the country: the Fed is the "lender of last resort.

3. Regulating banking activities: it has the power to supervise and regulate banks.

The Federal Reserve Board is the governing body which essentially manages the Federal Reserve System and performs an oversight function on domestic monetary policies.

<em>Additionally, the interest rate that the Federal Reserve Bank (the Fed) charges member banks for loans is known as the discount rate. Also, the Fed can increase the money supply by lowering this rate (discount rate) and thus, empowering the member banks to lend more money.</em>

5 0
3 years ago
Part E14 is used by M Corporation to make one of its products. A total of 16,500 units of this part are produced and used every
ioda
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8 0
3 years ago
Vaughn Manufacturing is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product
vladimir2022 [97]

Answer:

Sell before assembly, The company will be better off by $4 Per Unit

Explanation:

Calculation to determine what decision should Vaughn make

PROFIT BEFORE ASSEMBLY

Profit = Sale price - Cost price

Profit= $51 - $24

Profit= $27 Per Unit

PROFIT AFTER ASSEMBLY

First step is calculate the Cost of Assembled Product

Cost of Assembled Product =$24 + $14

Cost of Assembled Product= $38 Per Unit

Now let determine the profit

Profit = Sale price - Cost price

Profit= $61 - $38

Profit = $23 Per Unit

Now let Determine what decision should Vaughn make

Hence, the Profit by selling assembled product is LOWER than selling the Unassembled product by :

$27 Per Unit - $23 Per Unit

= $4 Per Unit

Therefore the decision that Vaughn should make is: Sell before assembly, The company will be better off by $4 Per Unit

8 0
3 years ago
One orange juice future contract is on 15,000poundsof frozen concentrate. Suppose that in September 2016a company sells a March
Marrrta [24]

Answer:

The company's loss on the contract is $750.

Explanation:

a) Data and Calculations:

Future Contract of 15,000 pounds frozen concentrate:

March 2018 orange juice futures price = 120 cents per pounds

December 2016, the futures price = 140 cents

December 2017, the futures price = 110 cents

February 2018, the futures price = 125 cents

Loss on futures contract = (125 - 120) * 15,000 = $750

b) This futures contract for frozen concentrate is a contract between two parties where both parties agree to sell and buy 15,000 pounds of frozen concentrate at a predetermined price of 120 cents per pound in March 2018, although the contract was entered into in September 2016.

5 0
3 years ago
According to OSHA standards, a competent person is defined as one who is capable of identifying existing and predictable hazards
Olin [163]

Answer:

True

Explanation:

OSHA standards are health and safety rules that an employer must put in place to ensure the safety of employees and reduce hazards in the workplace.

Different standards are applicable to different industries like the construction , maritime and other industries.

A competent person , according to the standard is one who is capable of identifying existing and predictable hazards in the surroundings , or working conditions which are unsanitary , hazardous or dangerous to employees and who has authorization to take prompt corrective measures to eliminate them.

6 0
3 years ago
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