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
Aleks [24]
3 years ago
6

Imagine that two goods are available to you: servants (X) and robots (Y). You like servants three times as much as robots. If yo

ur domestic help budget is $4,000 per month, the price (wage) of servants is $1500 per person per month, and the price (rent) of robots is $400 per unit per month, what is the value of the MktRS (market rate of substitution)
Business
1 answer:
Andrej [43]3 years ago
4 0

Answer: 3

Explanation:

The marginal rate of substitution simply means the rate at which one good will be exchanged for another good based on the current market price.

Since you like servants three times as much as robots, this implies that the utility that one gets from one servant is exactly like the utility that will be gotten from three robots.

Therefore, the utility function will be:

U = 3X + Y

Then, the marginal rate of substitution will be:

= MUX/MUY

= 3

You might be interested in
Three years ago shawheen deposited 5,000 in a savings account
krek1111 [17]

what's the question???????

8 0
3 years ago
The production function for earthquake detectors​ (Q) is given as​ follows: Q​ = 4K​1/2L​1/2 where K is the amount of capital em
Ksivusya [100]

Answer:

k= 5 units

L = 45 units

Explanation:

check the picture attached for full explanation and i hope it helps you

3 0
4 years ago
Read 2 more answers
Global Pistons​ (GP) has common stock with a market value of $ 200$200 million and debt with a value of $ 100$100 million. Inves
kvv77 [185]

Answer:

a. Suppose GP issues $ 100$100 million of new stock to buy back the debt. What is the expected return of the stock after this​ transaction?

  • 12%

b. Suppose instead GP issues $ 50.00$50.00 million of new debt to repurchase stock. i. If the risk of the debt does not​ change, what is the expected return of the stock after this​ transaction?

  • 18%

ii. If the risk of the debt​ increases, would the expected return of the stock be higher or lower than when debt is issued to repurchase stock in part ​(i​)?

  • If the risk of the debt increases, then the cost of the debt will increase. Therefore, the company will need to spend more money paying the interests related to the new debt which would decrease the ROE compared to the 18% of (i). Since we do not know the new cost of the debt, we cannot know exactly by how much it will affect the ROE, but I assume it will still be higher than the previous ROE.

Explanation:

common stock $200 million

total debt $100 million

required rate of return 15%

cost of debt 6%

current profits = ($200 million x 15%) + ($100 x 6%) = $30 million + $6 million = $36 million

if equity increases to $300 million, ROI = 36/300 = 12

if instead new debt is issued at 6%:

equity 150 million, debt 150 million

cost of debt = 150 million x 6% = $9 million

remaining profits = $36 - $9 = $27 million

ROI = 27/150 = 18%

3 0
4 years ago
A single server model with infinite calling population, first-come, first-served queue discipline, Poisson arrival rate and expo
Elden [556K]

Answer:

3.5 customers

Explanation:

The computation of the average number of customers in the system is shown below:

= (Arrival rate) ÷ (Service rate - arrival rate)

= (210 customers) ÷ (270 customers - 210 customers)

=  (210 customers) ÷ (60 customer)

= 3.5 customers

We simply apply the average number of customers formula so that the correct value can come

All other information which is given is not relevant. Hence, ignored it

3 0
3 years ago
During the recent economic crisis, many financial managers and corporate officers have been criticized for (a) poor decisions, (
Ksju [112]
<span>During the recent financial crisis, many financial managers and corporate officers have been criticized for (c) Large salaries. This criticism is certainly justified given that most executives received exorbitant compensation despite a plunge in the value of their companies. Thus, their salaries are not justifiable as they are not serving the needs of the shareholders whose interest they should serve. </span>
7 0
3 years ago
Other questions:
  • Mark agrees to buy dale's one-half-ton truck so that he can pull his trailer. both mark and dale believe that the truck is large
    5·2 answers
  • Low-balling is a sales technique where the salesperson quotes a low price for a car to get you to make an offer, and negotiates
    15·1 answer
  • How is the economy likely to be affected if a democracy becomes an oligarchy ​?
    14·1 answer
  • AVI supplies vended food to a large university. Because students kick the machines at every opportunity, management has a consta
    14·1 answer
  • 4. Which of the following is minced by very thin slicing?
    14·2 answers
  • Which of the following statements is a bottom-line statement​
    9·2 answers
  • need asap plz!!! Questlon 5 of 10 Which statement best describes the idea of the law of supply? A . The supply of a product decr
    12·1 answer
  • Marigold Corp.'s accounting records reflect the following inventories: Dec. 31, 2017 Dec. 31, 2016 Raw materials inventory $3200
    7·1 answer
  • ________ policies refer to government programs designed to exploit natural comparative advantage by increasing production of a f
    8·1 answer
  • According to the liquidity preference model, if the Federal Reserve increases the money supply, the equilibrium interest rate __
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!