Answer:
Option (a) is correct.
Explanation:
U(x1, x2) = x1x2
Income = 100 dollars
Therefore,
Alex budget constraint is $100.
(a) (12.5, 12.5)
Cost of this bundle = 12.5 × $4 + 12.5 × $4
= $50 + $50
= $100
(b) (25, 12.5)
Cost of this bundle = 15 × $4 + 10 × $5 + 12.5 × $4
= $60 + $50 + $50
= $160
This bundle is not possible because of budget constraint.
(c) (12.5, 25)
Cost of this bundle = 12.5 × $4 + 25 × $4
= $50 + $100
= $150
This bundle is not possible because of budget constraint.
(d) (15, 10)
Cost of this bundle = 15 × $4 + 10 × $4
= $60 + $40
= $100
Hence, it is possible to buy bundle (a) and (d).
Utility function for (a) and (d) bundle:
(a) (12.5, 12.5)
Utility = 12.5 × 12.5
= 156.25
(d) (15, 10)
Utility = 15 × 10
= 150
Therefore,
Alex will choose bundle (a) (12.5, 12.5) because this will give maximum utility.
Answer:
$307
Explanation:
The computation of the interest expense is shown below:
= Principal × rate of interest × number of days ÷ (total number of days in a year)
= $80,000 × 6% × (23 days ÷ 360 days)
= $307
The 23 days is taking from July 8 to July 31
We simply applied the simple interest formula by multiplying the principal amount with the rate of interest and the time period
Answer: Descriptive study
Explanation: This is a study that makes use of statistical methods to identify trends or patterns in a situation, in order to generate a hypothesis. Information is collected without altering the environment in any way. At this stage of the study, causal linkages are not identified among the various elements. From here further studies are conducted and more outcomes deduced.
Answer:
Cheyenne Corp.
Balance Sheet
For the year ended December 31, 2020
<u>Assets</u> ...
Long term assets:
Plant, property & equipment
Coal mine $500,000
Acc. depletion, coal mines <u>($104,000)</u> $396,000
Buildings $1,110,000
Acc. depreciation, buildings <u>($651,000</u>) <u>$459,000</u>
Total P,P & E $855,000
Goodwill <u>$410,000</u>
Total long term assets $1,265,000
A more simplistic way of expressing the distinction is to say that payments made under an ordinary annuity <span>occur at the end of the period while payments made under an </span>annuity due<span> occur at the beginning of the period.However, </span>ordinary annuity<span> is the more widely used term</span>