1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
An economy consists of three workers, Larry, Moe, and Curly. Each works ten hours a day and can produce two services: mowing law
pantera1 [17]

Answer:

Larry spends half his time on each activity, while Moe only washes cars and Curly only mows lawns. Then lawns will be mowed and cars will be washed

Explanation:

In a hour :

Larry can ; wash 1 car or mow 1 lawn

Moe can ; mow 1 lawn or wash 2 cars

Curly can ; mow 2 lawns or wash 1 car

The inefficient scenario is  Larry spends half his time on each activity, while Moe only washes cars and Curly only mows lawns. Then lawns will be mowed and cars will be washed. this is because Larry can either wash 1 car or mow 1 lawn every hour and if Moe only washes cars and Curly only mows Lawns there will still be Cars and Lawns left to be washed and Mowed since Larry does not work at full capacity like Moe and Curly who could wash 2 cars or mow 2 lawns every hour

7 0
4 years ago
The technology that allows you to view and access Internet resources is the _____.
vladimir1956 [14]
C.) web browser is the right answer
6 0
3 years ago
Read 2 more answers
David owns a liquor store in a high-crime area. In order to obtain a reduced insurance premium, David promised to have a burglar
OverLord2011 [107]

Answer:A

Explanation:

6 0
3 years ago
Some operational risks in a supply chain are beyond the control of the purchaser or supplier, and some are within their control.
Yanka [14]

Answer:

Letter a. is correct. <u>TRUE.</u>

Explanation:

This statement is correct because a supply chain is part of the macroenvironment, and operational risk can be defined as different results than expected due to internal or external events.

The current economic scenario appears to be unstable, as political, economic, technological, social and other changes are occurring all the time, which can represent significant external risks in a supply chain, where there is no control by the buyer or supplier.

Some examples of uncontrollable operational risks are:

  • Fraud and misconduct;
  • Systemic failure;
  • Safety;
  • Human error.

For this reason, the importance of risk management, which includes planning, identification, qualitative and quantitative analysis, response planning and monitoring and control processes, which together will provide subsidies for less vulnerability in the supply chain and less risk.

8 0
4 years ago
Sheffield Corp. assigned $1601000 of accounts receivable to Pharoah Company as security for a loan of $1344000. Pharoah charged
Tpy6a [65]

Answer:

$1,317,120

Explanation:

Cash received by Sheffield Corporation at the time of assignment = Amount borrowed - Commission paid

= $1,344,000 - ($1,344,000 * 2%)

= $1,344,000 - $26,880

= $1,317,120

So, the amount of cash Sheffield received from Pharoah at the time of the assignment was $1,317,120

7 0
3 years ago
Other questions:
  • PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below fo
    11·1 answer
  • Iron Works International is considering a project that will produce annual cash flows of $38,200, $46,900, $57,600, and $23,100
    6·1 answer
  • Mary and Sam are the only two growers who provide organically grown corn to a local grocery store. They know that if they cooper
    10·1 answer
  • Castle State Bank has the following financial information.
    8·1 answer
  • Kohlman Company began its operations on March 31 of the current year. Projected purchases for the first three months of business
    11·1 answer
  • According to your textbook, the following passage from a speech introduction is an example of a(n) __________ . Today I would li
    10·1 answer
  • Phoenix Guitars is interested in pursuing backward integration to take greater ownership of the extraction of raw materials and
    14·2 answers
  • "Craig, the CEO of ShopRite, Inc., has noticed that one of his store locations has consistently through-the-roof sales numbers.
    9·1 answer
  • Borrowed 152300 for three years if the qouted rate (apr) is 11.75% and the compounding is daily what is the effective annual rat
    5·1 answer
  • Keisha is renting a one-bedroom apartment but allows her best friend to move in and pay $200 per month to sleep on the couch for
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!