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Sladkaya [172]
3 years ago
7

There are two people in the economy: Martha and Charlie. There are two goods in the economy: books and wine. Martha is endowed w

ith 110 books and 20 wine bottles, while Charlie is endowed with 20 books and 45 wine bottles. Denote books with, b, and wine with, w. Martha has the utility function: U(b,w) = 6b+24w. Charlie has the utility function: U(b,w) = bw. At a pareto optimal allocation, the price of books is $1, while the price of wine is $4. How many books does Charlie consume at a pareto-optimal allocation in the exchange equilibrium?
Business
1 answer:
balu736 [363]3 years ago
3 0

Answer:

Charlie consumes 100 books and 25 wines at pareto-optimal allocation, is the right answer.

Explanation:

According to the question, book is denoted with b whereas, wine is denoted with w.

The Utility function of Martha is-  U\left ( b,w \right )=6b+24w

The Utility function for Charlie is- U\left ( b,w \right )=bw

P_{b} = $1 : P_{w} = $4

At pareto-optimality,

MRS_{bw}=\frac{P_{b}}{P_{w}}\\\frac{w}{b}=\frac{1}{4}\\4w=b\\

The budget constraint,

1.b+4.w=m=1\left ( 20 \right )+4\left ( 45 \right )\\b+4w=20+180\\4w+4w=200\\w=\frac{200}{8}=25\\\therefore b=100

Therefore, it may be said that Charlie must consume 100 books and 25 wine at pareto-optimal allocation.

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Cost of Quality Report
yarga [219]

Answer:

Cost of Quality Report

Quality Cost     Quality Cost Percent of Total       Percent of

Classification                                    Quality Cost              Total Sales

Prevention         $23,400               10.0%                   1.3%

Appraisal         $46,800               20.0%                  2.6%

Internal failure $70,200               30.0%                  3.9%

External failure $93,600               40.0%                  5.2%

Total                        $234,000            100.0%                  13.0%

percent of total sale = quality cost/$1,800,000

3 0
3 years ago
Which of the following statement is not true about derivative contracts?
8090 [49]

Answer:

a. A long position is a bet that the number is going to fall while a short position is a bet that the number will rise in the future.

Explanation:

The derivative contract is a contract in which the contract is to be done between two or more parties regarding the value i.e. depend upon the financial asset i.e. underlying. It involves the bonds, commodities, etc

So according to the given options, the option a is correct as long position is a bet in which the number is to be decline while on the other hand in the short position the number would increase

4 0
2 years ago
Horton Company purchased a building on January 2 by signing a long-term $480,000 mortgage with monthly payments of $4,500. The m
Ganezh [65]

Answer:

$479,500

Explanation:

To determine the interest due for the first payment we can solve the following:

interest due on payment 1 = total debt x interest rate x 1/12 = $480,000 x 10% x 1/12 = $4,000

Now we need to subtract the interest due from the first payment:

principal paid = payment - interest due = $4,500 - $4,000 = $500

remaining principal = $480,000 - $500 =  $479,500

8 0
2 years ago
A market situation where a small number of sellers compose the entire industry is called
Nadusha1986 [10]

Answer:

The correct answer is: oligopoly.

Explanation:

A market structure where there are only a few firms is called an oligopoly market. These firms can be producing either identical products or differentiated products.  

Because of few firms, there is a high degree of competition in the market. The firms are price makers and face a downward sloping curve.  

There is interdependence in the market such that the economic decisions of a firm affects the price, profits and output level of its rivals. So the firms have to consider the reaction of its rivals before making an economic decision.

4 0
3 years ago
What will you need to change to make the message appropriate for both a subordinate and other subordinates? Make the message eve
bezimeni [28]

Answer: The correct answer is "Focus on congratulating the team using each individual’s name and use a more formal tone.".

Explanation: In order for the message to be more appropriate both for a subordinate and for other subordinates, the team and each individual subject should be congratulated with their own name so that they feel part of it and feel that their work is important for the team always in a formal tone that maintains respect among all.

4 0
3 years ago
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