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GaryK [48]
3 years ago
10

Jackson says that his fifth game of chess gave him greater utility than his first, and therefore the law of diminishing marginal

utility does not hold. An economist who believes that marginal utility definitely and always declines with the consumption of equal successive units of a good will likely say:
Business
1 answer:
iris [78.8K]3 years ago
6 0

Answer:

the fifth game of chess is a different good than the first game of chess.

Explanation:

In this scenario Jackson says that the fifth game of chess gave him more utility than the first game he played. This goes against the law of diminishing marginal utility which states that the utility a consumer gains from consuming a good diminishes as more of the good is consumed.

The logical explanation an economist will give is that the fifth game was a different product than the first game. So the utility between the products are different.

In such a situation it is possible that the utility from the fifth game is higher than that of the first game

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LenKa [72]
I believe its the right sided button. 

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5 0
3 years ago
Suppose that Boeing and Rolls-Royce Holdings are the sole producers of a particular turbo engine. The two firms currently charge
julsineya [31]

Answer:

<em>The two firms will manipulate the market in unison, to maintain the same price, which guarantees the optimum benefit for both firms, as opposed to if one or both of them reduces its price.</em>

Explanation:

<em>A cartel is a group of independent market participants that collude with each other in order to improve their profits and dominate the market.</em> Cartels are usually in the same line of business, and they form a type of alliance as competitors. Cartel use price fixing, bid rigging, and reductions in output, to dominate the market and to maximize their profit. They are usually frowned upon in a free market system.

In this case,<em> if the the two firms Boeing and Rolls-Royce operates as a cartel, they will bend the market rules by fixing their prices, instead of letting market drivers like demand and supply to determine their selling price, they might also reduce their output so that they both have the same level of output, or do any other form of manipulation in unison to maintain the same price</em>. This is because both companies will benefit equally if they maintain the same price, as opposed to if one or both of them reduces price.

3 0
3 years ago
________ can adopt one of two competitive strategies: they can challenge the leader or they can play along with competitors and
Tcecarenko [31]
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6 0
3 years ago
A circle is divided into 18 equal parts. How many degrees is the angle for each part? How.Many degrees is the angle for five par
zhannawk [14.2K]
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4 0
3 years ago
You would like to combine a risky stock with a beta of 1.5 with U.S. Treasury bills in such a way that the risk level of the por
astra-53 [7]

Answer:

66.67 %

Explanation:

The computation of the percentage of the portfolio should be invested in Treasury bills is shown below:-

Let us assume beta be x

So the equation would be

Percentage of portfolio = x × (Beta of stock) + (1 - x) × (Beta of T - Bills) - 1

= x × (1.5) + (1 - x) × (Beta of T - Bills) - 1

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x = 1 ÷ 1.5

= 0.67

or

= 66.67%

7 0
4 years ago
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