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hjlf
3 years ago
10

Ellie is spending her entire income on goods X and Y. Her marginal utility from the last unit of X is 100 and the marginal utili

ty from the last unit of Y that she consumes is 50. ​Ellie's utility is only maximized if
Business
1 answer:
defon3 years ago
6 0

Answer:

The price of good X is twice the price of good Y

Explanation:

Utility can be defined as the amount of satisfaction that one can derive from consuming a product.

Marginal utility is the additional utility derived from consuming an extra unit of a product.

Total Utility is the total satisfaction one derives from consuming all units of a product.

Because consumers are rational and they want to spend the least amount to get maximum utility, they are at equilibrium at the point where Marginal Utility of product X divided Price of X is equal to the Marginal Utility of product Y divided by Price of Y.

So for utility to be maximized it means that the price of good X has to be twice the price of good Y.

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Answer:

Option C.

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Automatic Merchandising can also referred to as automatic selling and it saves the company from incurring cost of labor, involving a third party directly and so on.

However, this method might be the wrong strategy to be used in the company Janice works for. This is due to the fact that the company's customers are still loyal to the company because of the quality customer service. The quality customer service that the company offers will therefore, cease to exist if the company switched to Automatic Merchandising, because sales through this method are impersonal.

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3 years ago
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Employees at Clearwater Plumbing Supply, Inc. asked the management to hold an election to determine which radio station would be
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Check the explanation

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Goods-producing firms not necessarily needs to focus on the flow of people, information, and services, what is true is that firms use physical inventory because it's necessary to have available products to sale.

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