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marta [7]
3 years ago
5

Mr. Rational has $27 that he plans to spend purchasing 5 units of good X (priced at $3 per unit) and 6 units of good Y (priced a

t $2 per unit). The marginal utility of the fifth unit of X is 30, and the marginal utility of the sixth unit of Y is 18. If Mr. Rational is a utility maximizer, he should: a. buy less of X and more of Y. b. buy more of X and less of Y. c. buy X and Y in the quantities indicated. d. buy less of X and even lesser than that of Y. e. not buy anything.
Business
1 answer:
allsm [11]3 years ago
4 0

Answer:

Option A, buy less of X and more of Y is correct.

Explanation:

The amount that Mr. Rational is going to spend = $27

Quantity of good X = 5 units

Price of good X (Px) = $3 per unit

Marginal utility of 5th unit of X (MUx) = 30

Quantity of good Y = 6 units

Price of good Y (Py) = $2 per unit

Marginal utility of 6th unit of Y (MUy) = 18

Now \ find \  \frac{MUx}{Px} = \frac{30}{3} = 10 \\

Now \  \frac{MUy}{Py} = \frac{18}{2} = 9

Since \ the  \ \frac{MUx}{Px} is \ greater \ than \  \frac{MUy}{Py}.

So good x will be substituted for y in order to reach the consumer equilibrium.

\frac{MUx}{Px} =  \frac{MUy}{Py}

Thus, Option a. buy less of X and more of Y is correct.

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LO 1.4Which of the following is not a step in the outline for examining ethical issues?
Citrus2011 [14]

Answer:

Confirm decision with FASB.

Explanation:

An ethical issue is any situation where a person or an organisation has to make a decision if a situation is ethical or not.

Steps to examining ethical issues includes;

1. Recognise the ethical issue

2. Establish the facts of the situation.

3. Recognise the values the ethical issue violated

4. Recognise alternative course of action.

5. Make a decision.

6. Evaluate each course of action.

I hope my answer helps you

7 0
3 years ago
You plan to deposit $4,700 at the end of each of the next 25 years into an account paying 10.3 percent interest. a. How much wil
Ganezh [65]

Answer:

Final Value= $483,603.80

Explanation:

Giving the following information:

You plan to deposit $4,700 at the end of each of the next 25 years into an account paying 10.3 percent interest

We need to calculate the final value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit= 4,700

n= 25

i= 0.103

FV= {4,700*[(1.103^25)-1]} / 0.103= $483,603.80

4 0
3 years ago
When Whitney took over her father's sporting goods store, she evaluated some of her father's vendor relationships. She found tha
muminat

Answer:

<em>Open Communication</em>

Explanation:

In business, open communication is<em> really the capacity of anyone to obtain, access and share communication resources on one level in order to provide value-added facilities on yet another level in a layered communication system architecture under equal conditions with a transparent relationship between cost and pricing.</em>

It is important for business because it encourages your staff to become more involved and recognize that what they are doing counts to business success.

6 0
4 years ago
A recipe for 100 servings contains 25 pounds of ground beef, 10 pounds of pasta, 10 pounds of tomato paste, and 5 pounds of chee
adelina 88 [10]

Answer:

125 pounds

Explanation:

The computation of the number of pounds of ground beef will be in your new recipe is shown below:

= Number of pounds contained in ground beef × conversion factor

= 25 pounds of ground beef × 5

= 125 pounds

By multiplying the number of pounds with the conversion factor we can get the number of pounds of ground beef        

6 0
3 years ago
Piper is a manager in a corporation that was organized in Canada by one of his former coworkers. The company provides consulting
Yuri [45]

Answer:

A Public company.

Explanation:

A public company can be described as a commercial organization that has its share capital formed by shares, that is, the company sells its shares to the public, who become partners in the company.

The shares of a public company are traded on the stock exchange freely, without the need for any type of public bookkeeping.

The company's shareholders can be composed of any type of person who is interested in buying shares in the company.

Private companies generally become public because of the possibility of obtaining capital, which generates greater revenue for the company and greater possibility for growth and investment in business.

8 0
3 years ago
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