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Lynna [10]
3 years ago
15

Alex has allocated his income in such a way that the marginal utility of the last unit of product X he consumes is 40 utils and

that of the last unit of Y is 16 utils. If the unit price of X is $5, then the price of Y must be ________.
A. $1 per unit.
B. $2 per unit.
C. $3 per unit.
D. $4 per unit.
Business
1 answer:
ikadub [295]3 years ago
6 0

Answer:

The price of product Y is B) $2 per unit.

Explanation:

Marginal utility is the satisfaction derived from the consumption of an additional unit of a product or commodity. When calculating for the utility maximization, one has to consider four things;- The products or commodities in question as well their different prices. The utility maximization is calculated using the formula; MU(X) ÷ P(X) = MU(Y) ÷ P(Y). MU(X) and P(X) here represents marginal utility of product X and price of X  respectively while MU(Y) and P(Y) represents marginal utility of Y and price of product Y respectively. This is thus solved without the price of Y. So, P(Y) is an unknown assumed as A.

Therefore, MU(X) ÷ P(X) = MU(Y) ÷ P(Y) is replaced with figures; 40 utils ÷ $5 = 16 utils ÷ $A

Using cross multiplication, we have 40A = 80; A = 80 ÷ 40 = 2

Therefore. $2 per unit is the price of product Y

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Suppose you started a new all-equity financed company that is expected to generate an ROE of 15% indefinitely. The current book
Luda [366]

Answer:

The value of the stock at start-up = $67.5

Explanation:

According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return  

This principle can be applied as follows:  

The value of stock today is the present value of the future return discounted at the required rate of return

The return can be computed as the ROE × Book value of share

Return = 15%× 30 =4.5

Price of stock today = D× (1+g)/r-g

D= current return, g- growth rate, r-required rate of return

DATA: D= 4.5, g= 5%, r= 12%

PV  = 4.5× (1.05)/(0.12-0.05)

= 67.5

The value of the stock at start-up = $67.5

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Answer:

a) channel members.

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Explanation:

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What term is used to describe the method that allows coplink to access many different databases of law enforcement agencies with
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The term is used to describe the method that allows copy link to access many different databases of law enforcement agencies with varying data fields is a multi-dimensional approach Option A

This is further explained below.

<h3>What is a multi-dimensional approach?</h3>

Generally, Because we are utilizing an appropriate and specialized way to access the data basis of law enforcement under multiple data fields, we are able to state that the described method operates under the term known as a multi-dimensional approach.

This is an approach in which the database is accessed and analyzed via numerous dimensions, or we can call data to feel categories, in order to produce appropriate results and more efficient functioning.

In summary, we may reach the following conclusion after reviewing the information presented above: the choice that was picked is the optimal response to the inquiry that was posed.

The question that was presented before has been addressed and clarified; if you have any other questions, please leave them in the comments area below.

Read more about the multi-dimensional approach

brainly.com/question/14522063

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