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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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Fiwrt Corporation manufactures and sells stainless steel coffee mugs. Expected mug sales Fiwrt (in units) for the next three mon
olga55 [171]

Answer:

The number of mugs Fiwrt should plan on producing during the month of November is 35400 units of mugs.

Explanation:

Production unit (november) = Sale unit + Desired ending inventory-Beginning inventory

                                               = 36000 + (34000*30%) - (36000*30%)

                                              = 35400 Units

Therefore, The number of mugs Fiwrt should plan on producing during the month of November is 35400 units of mugs.

8 0
3 years ago
How do businesses help a country's economy
Marianna [84]
It provides the added necessities we need.
7 0
3 years ago
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Beresford Inc. purchased several investment securities during 2015, its first year of operations. The following information pert
Minchanka [31]

Answer:

$637,000

Explanation:

The computation of the  total investment securities reported is shown below:

= ABC Co. bonds amortization cost for year 2015 + DEF Co fair value for year 2015 + GEH Inc fair value for the year 2015 + IJK Inc fair value for the year 2015 + LMN co stock fair value for the year 2015

= $367,500 + $48,000 + $47,000 + $44,000 + $130,500

= $637,000

We simply applied the above formula

6 0
3 years ago
If the money supply is​ $500 and nominal income is​ $3,000, the velocity of money is A. ​1/60. B. ​1/6. C. 6. D. 60.
algol [13]

Answer:

The correct option is c.6

Explanation:

For computing the velocity of money, the following formula should be used which is shown below:

The Velocity of money = Nominal income ÷ money supply

where,

Nominal income is $3,000

and, the money supply is $500

Now put these values to the above formula so that we can find out the answer

So, the answer would be equal to

= $3,000 ÷ $500

= 6

Thus, the velocity of money is 6

Hence, the correct option is c.6

5 0
3 years ago
On the foundation day of an organization, the president of the organization awards exceptionally performing employees with a bou
MA_775_DIABLO [31]

Answer:

Ceremony

Explanation:

Ceremony which can as well be reffered to as Rites and Rituals in an organization can be regarded as a pre-planned events which has social, formalities as well as latents purposes. This manifest purpose have effect on how the organization is working and in aiding the acheiving the organizational goals. It involves motivation of employee in the organization by giving bout award to the outstanding among them. For instance, On the foundation day of an organization, the president of the organization awards exceptionally performing employees with a bouquet and a plaque at a banquet every year is an example of a ceremony.

8 0
2 years ago
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