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Alja [10]
3 years ago
8

The marginal utility for the third unit of X is 63 utils, and the marginal utility for the fourth unit of X is 56 utils. Assume

that, in this case, utility can only take on whole number, integer, values measured in utils.
If the law of diminishing marginal utility holds, the minimum total utility of consuming four units of X is_______ utils.
Business
1 answer:
borishaifa [10]3 years ago
8 0

Answer:

248 UTILS

Explanation:

Total Utility is the total satisfaction from consumption of all units of a good.

Marginal Utility is the additional satisfaction from consuming an additional unit of a good.

TU = ΣMU ; MU = TUn - TUn-1

Law of Diminishing Marginal Utility states : A good's units of consumption increase makes it additional satisfaction i.e MU to rise lesser in the successive unit than in the preceding one. Eg - A thirsty person will get higher satisfaction from the 1st glass of water than the 2nd glass.

If the case gIven follows Law of DMU : (Given- [email protected] unit < [email protected] unit) i.e (56<63) ; Following must would have been the case :

[email protected] unit > [email protected] unit > [email protected] unit - First two MUs would at least be 65, 64 (least possible whole no. integer values > 63).

So , Minimum TU (1..4) = ΣMU = 65 + 64 + 63 + 56 = 248 utils

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Answer:

B. 26,000, 24,000.

Explanation:

Stock Company

Equivalent units

Particulars                 Units       % of Completion           Equivalent Units

                                                   Mat. Conversion          Mat.  Conversion

Transferred Out      23000         100         100           23000      23000

<u>Ending WIP              3000            100       331/3%       3000        999.9= 1000</u>

<u>Total Equivalent units                                                  26000        24000</u>

<u />

The Equivalent units can be calculated either by adding the units transferred out and ending WIP or by adding beginning WIP and units started.

Equivalent units for materials 26000

and Equivalent units for conversion are: 24000

3 0
4 years ago
A situation in which financial or other personal considerations have the potential to compromise or bias professional judgment a
STatiana [176]
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3 0
4 years ago
Cullen and MacNeil's is a printing press. It currently faces a threat from the electronic media. The company primarily views its
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7 0
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4 0
4 years ago
The marginal benefit Bob gets from purchasing a third pair of gloves is Select one:_____.
babymother [125]

Answer:

d. the total benefit he gets from purchasing four pairs of gloves minus the total benefit he gets from purchasing three pairs of gloves.

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Marginal benefits refer to the additional gains obtained by the sales, purchase, or manufacture of an extra unit. It the advantage associated with buying or selling one more unit. Marginal benefit is compared with the marginal cost to determine if continuous production is profitable.

Since marginal benefits are associated with an extra item, obtaining the value of the additional items must exclude the previous units. In this case, getting the marginal benefit of the fourth item can be calculated by adding up the gains of all the four gloves then subtracting the gains of the first three.

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