Answer:
The Marginal Rate of Substitution looks at the balance in changes of good 1 and good 2 required for the consumer to be indifferent between his/her consumption bundles before and after trade. But what does indifference mean? It means that utility for both bundles is exactly equal. Therefore, ΔU=0
There is some (negative) change in utility resulting from giving up a little bit of good 2, and as we saw in the previous section, this change equals MU₂Δx₂, Similarly, there is some (positive) change in utility from getting a little more of good 1, MU₁Δx₁ which equals Since we want to be indifferent before and after the trade, it must be that the sum of these changes equals zero. That is, U=MU₁Δx₁ + MU₂Δx₂ = 0, now the MRS can be find from this equation of marginal utilities!
First, MU₁Δx₁ from both sides. Then, MU₂Δx₂= -MU₁Δx₁ Next, divide both sides by x₁ and MU₂. The result is Δх₁/Δх = - MU₁/ MU₂ The left hand side is just the MRS, and the right hand side is the negative ratio of marginal utilities. In the MRS section, we learned why the left hand side would automatically be negative.
Explanation:
The right hand side needs the negative sign because marginal utility is positive for goods, so the ratio of marginal utilities is always positive.
Answer: 26.15
Explanation: The degree of operating leverage is calculated as the percentage change in operating income in relation to a percentage change in sales.
Thus the degree of operating leverage of Gateway inn is calculated thus:
DOL = Cont Margin/Operating income
DOL = 47/(4.6-3.3)
DOL = 47/1.3
DOL= 26.15
Answer:
The correct answer is A.
Explanation:
Giving the following information:
Interest expense= $600,000
Income before income tax expense= 4,200,000
To calculate the interest earned ratio we need to use the following formula:
Times interest earned ratio= earnings before interest and tax/ interest rate
Times interest earned ratio= 4,200,000/600,000= 7
An important part of taking meeting minutes is C. PAYING CLOSE AND CAREFUL ATTENTION.
A meeting minutes can be described as a log of chronological event within the meeting. It is a log wherein everything that happened during the meeting is noted. Like who led the meeting, the topics discussed, the questions raised and the answers given. It also records the plans for future discussions and resolutions reached during the meeting.
Answer:
Multinationals provide an inflow of capital into the developing country.
Explanation:
This capital investment helps the economy develop and increase its productive capacity.
