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ohaa [14]
3 years ago
6

Suppose that Ms. Thomson is currently exhausting her money income by purchasing 10 units of A and 8 units of B at prices of $2 a

nd $4 respectively. The marginal utility of the last units of A and B are 16 and 24 respectively these data suggest that Ms. Thomson:
should buy less B and more A
Business
1 answer:
IgorLugansk [536]3 years ago
7 0

Answer:

∵  MU A / P A > MU B / P B

∴ A purchased & consumer more , B purchased & consumed less.

Explanation:

Consumer is at utility maximising equilibrium, where Marginal Utility per unit of price spent is equal for both goods consumed by consumer.

MU A / P A = MU B / P B

MU A / P A = 16 / 2  = 8

MU B / P B = 24 / 4 = 6  

In above case : MU A / P A > MU B / P B [  ∵ 8 > 6 ]  

This implies consumer is getting more utility (satisfaction) per unit of price spent on Good A , than that of Good B.

So, consumer Thompson will consumer more of Good A & less of Good B.

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Conventional wisdom says one should measure a manager's investment performance over an entire market cycle. What arguments suppo
White raven [17]

Answer:

In every form of analysis, it is always safer to take a macro or holistic view of the situation. This is true for the investment performance of a manager. One investment decision that went right does not suffice to classify an investment portfolio manager as proficient, neither is one that went south enough to tag him deficient.

The forecasting ability of managers, on the balance of probability, will vary for different cases, with a helicopter view of providing a more accurate measure of their performance.

However, if it was possible to analyse the market for volatility and adjust our forecasts it becomes unnecessary to look at and analyse all the information from a 12-month cycle before coming to terms about the performance of the manager.

Cheers!

4 0
3 years ago
First, find if a country's RGDP grows on average at 3% per year, how long will it take for this country to double its RGDP. If,
sasho [114]

Answer:

At the growth rate of 3% per year

Number of years taken to double the GDP = 23.33 years

The the GDP will double ( 23.33 - 20 ) 3.33 years earlier at 3.5% growth rate

Explanation:

According to the rule of 70

Number of years taken to double the GDP = 70 ÷ [ Growth rate ]

Thus,

At the growth rate of 3% per year

Number of years taken to double the GDP = 70 ÷ 3

= 23.33 years

Further

if the growth rate is 3.5% per year

Number of years taken to double the GDP = 70 ÷ 3.5

= 20 years

Hence,

The the GDP will double ( 23.33 - 20 ) 3.33 years earlier at 3.5% growth rate

6 0
3 years ago
The northern vision of the Reconstruction-era southern economy included all of the following EXCEPT:
IceJOKER [234]

Answer:

A. the labor system would be as close to slavery as possible, thereby assuring high productivity.

Explanation:

The Reconstruction - era of northern version was clearly impacted on Slavery.

As the main objective of such reconstruction was to remove slavery at maximum. And with the end of such reconstruction era there was an end to slavery.

Accordingly, new constitutional rights to people earlier under slavery were provided.

Now, therefore, statement a in the given instance which provides for close relation between labor system and slavery is incorrect.

Incorrect Statement is:

A. the labor system would be as close to slavery as possible, thereby assuring high productivity.

4 0
3 years ago
A competitive firm maximizes profit by choosing the quantity at which.
photoshop1234 [79]

Profit maximization can be achieved by a competitive corporation by choosing a quantity of output such that marginal revenue equals marginal cost.

<h3>How does a corporation maximize its profit?</h3>

A corporation maximizes income via way of means of operating wherein marginal revenue equals marginal price. The corporation chooses quantity in order for that rate to equal marginal value so that it can maximize its profit.

Therefore, When the marginal revenue for an aggressive corporation equals the market rate, the firm maximizes its profit.

learn more about profit maximization here:

brainly.com/question/4171648

#SPJ1

7 0
2 years ago
How many months will it take to pay off a $470 debt, with monthly payments of $20 at the end of each month, if the annual intere
amm1812

Answer:

28 month (approx)

Explanation:

Given

Present value = $470

Monthly Payment = $20

Interest Rate = 15% annual = 15% / 12 = 1.25% monthly

                                                             =0.0125

<h3>Present Value = PMT [\frac{1-(1+i)^{-n}}{i}] \\470 = 20 [\frac{1-(1+0.0125)^{-n}}{0.0125}]\\470/20 = [\frac{1-(1+0.0125)^{-n}}{0.0125}]\\23.5 \times 0.0125 =1-(1+0.0125)^{-n}\\1-0.29375= (1+0.0125)^{-n}\\0.70625 = (1+0.0125)^{-n}\\0.70625 =(1.0125)^{-n}\\0.70625= \frac{1}{(1.0125)^{n}}\\(1.0125)^{n}=1.4159292\\n=28(approx)</h3><h3 />
5 0
3 years ago
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