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3 years ago

Allocative efficiency occurs only at that output where

Business

1 answer:

goblinko [34]3 years ago

7 0

Answer: Allocative efficiency occurs in the market.

Explanation:

Allocative efficiency is a concept that measures the success of a market mechanism for supplying consumers with the goods needed in the desired quantities and quality. Ability implies that there is no way to change production and consumption to maximize one person's benefit, thereby diminishing the other person's utility. Efficiency is a condition in which the maximum amount of goods and service is extracted from the available resources.

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A buyer with a 15-year, $250,000 loan at a 5.5% interest rate has a monthly principal and interest payment totaling $2,042.71. W

lorasvet [3.4K]

Given:

Loan amount = $250000

Interest rate = 5.5%

Interest payment = $2042.71

To find:

Total amount of interest

Solution:

The total number of months in 15 years = $15\times12=180\text{ years }$

Total monthly payments will be $180\times \$2042.71 = \$367687.8$

So, the total pay-backs will be $3,67,687.8

Total interest paid will be as follows,

$\text{Total interest paid = Total pay-backs - Loan amount}$

On plugging-in the values in the above formula we get,

$\Rightarrow \$3,67,687.8-\$250,000=\$1,17,687.80$

Therefore, the total amount of interest that the borrower will pay over the course of the loan is $1,17,687.80.

8 0

3 years ago

Bill currently uses his entire budget to purchase 5 cans of Pepsi and 3 hamburgers per week. The price of Pepsi is $1 per can,

FinnZ [79.3K]

Answer:

Option (B) is correct.

Explanation:

The utility maximization point for a consumer is as follows:

$\frac{MU_x}{P_x}=\frac{MU_y}{P_y}$

It is given that,

price of Pepsi(x) = $1 per can

price of a hamburger(y) = $2

Marginal utility from Pepsi = 4

Marginal utility from hamburgers = 6

Hence,

$\frac{4}{1}>\frac{6}{2}$

4 > 3

Therefore, it can be seen that the consumer's utility is not maximized at this point.

Law of diminishing marginal utility states that as the consumer consumes more and more quantity of goods then as a result the utility obtained from the consumption goes on diminishing.

So, there is a need to increase the quantity of Pepsi consumed and reducing the quantity of hamburgers consumed.

6 0

3 years ago

What is a fixed rate?

Dovator [93]

Answer:

A fixed interest rate loan is a loan where the interest rate doesn't fluctuate during the fixed rate period of the loan.

Explanation:

a fixed rate could also be calculated if you want to know how to calculate fixed rate i could tell you

5 0

3 years ago

What is the prime rate?

UkoKoshka [18]

I think the answer is A

3 0

3 years ago

Read 2 more answers

When sold at a 40% discount, a sweater nets the merchant a 20% profit on the wholesale cost at which he initially purchased the

Airida [17]

Answer:

100%

Explanation:

Let the normal retail price of the sweater be 'SP' and the cost price be 'CP'

Therefore,

The selling price = SP - 40% of SP = SP - 0.4SP = 0.6SP

Now,

the profit = 20% of CP = 0.2CP

also,

Profit = Selling Price - Actual price

0.2CP = 0.6SP - CP

1.2CP = 0.6SP

CP = 0.5SP

SP = 2CP

thus,

Increase percentage in sweater marked up from wholesale at its normal retail price

= $\frac{SP-CP}{CP}\times 100$

= $\frac{2CP-CP}{CP}\times 100$

= 100%

3 0

3 years ago