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Travka [436]
3 years ago
8

If the prices of X and Y are $2 and $4 per unit, respectively, and this consumer has $10 in income to spend, to maximize total u

tility, this consumer should buy:
Business
1 answer:
DaniilM [7]3 years ago
4 0

Answer: 1 unit of X and 2 units of Y

Explanation: Total utility is the complete satisfaction you get from maximising usage of a quantity of a good or service. However another element also needs to be considered, and that is marginal utility. Marginal utility is the satisfaction you get from consuming an additional quantity of a good or service.

Both these factors are important as they determine how much of each product the consumer should buy. To maximise total utility, the consumer must use the full $10 income. But the question still stands as to which combination of products should the consumer purchase.

To make it fair the consumer should start by purchasing one of X and one of Y, and keep taking one of each (starting with X) to keep it fair. However after taking one of X, worth $2, and one of Y, worth $4, there is only $4 left. That means that if the consumer then takes one of X there will be $2 left, disallowing the consumer to afford X, and thus making the purchases unfair. Therefore in terms of meeting the marginal utlility, it is better to then swop to purchasing Y with the remaining $4, and maximising the consumer's total utility.

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Cost-volume-profit analysis requires management to classify all costs as either fixed or variable with respect to production or
Anuta_ua [19.1K]

Answer: True

Explanation:

Cost-volume-profit analysis is refered to as the predictive tool that can be used for the determination of the profit consequences of the price changes, future cost changes, price and the volume of the activity changes.

It requires the management to classify all the costs as either fixed cost or variable cost with respect to production or sales volume within the relevant range of operations.

3 0
3 years ago
how many years will be required for a given sum of money to triple, if it is deposited in a bank account that pays 6% per year c
IgorLugansk [536]

Answer:

19 years

Explanation:

the 19th year your money will triple and be worth 3.0256 times the original sum.

7 0
3 years ago
Dragon express inc. just paid a $1.57 dividend and investors expect that dividend to grow by 5% each year forever. if the requir
Elena-2011 [213]

To solve this problem, we will use a valuation method named income valuation includes discounting of the profits the stock will carry to the stockholder in the probable future, and a final value on disposal.

Solution:

1.57 (1.05) / (.14 - .05)

= 18.32. the answer is letter d.

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6 0
3 years ago
How often are people likely to communicate interpersonally ​
Y_Kistochka [10]

Answer:

rarely these day's maybe family that's bout it.

Explanation:

Interpersonal communication is the process by which people exchange information, feelings, and meaning through verbal and non-verbal messages: it is face-to-face communication.

6 0
2 years ago
Read 2 more answers
Jackie has been offered positions by two cable companies. the first company pays a salary of $14,000 plus a commission of $100 f
masha68 [24]

The correct answer is 80 cable packages.

The following equation will solve this problem, where x equals the number of cable packages.

14,000 + 100x = 20,000 + 25x

First, subtract 25x from both sides:

14,000 + 75x = 20,000

Next, subtract 14,000 from both sides;

75x = 6,000

Finally, divide both sides by 75.

X = 80

Therefore, the answer is 80 cable packages.

3 0
3 years ago
Read 2 more answers
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