Marginal utility will be calculated for movies by: 14/(4*4) which would mean 0.875 utils per dollar per movie. Whereas, for apps, it would be: 8/(3*4) which would mean utils per dollar per app to be 0.667. Hence, movies tend to carry higher utility.
Answer:
The standardized metric of output used to gauge the size and market potential of an economy is the Gross Domestic Product.
Explanation:
The Gross Domestic Product is the value of goods and services that are
produced in a country in a certain time and it is consider an important indicator to analyze the state of a country's economy. The value of the goods and services produced is considered the size of the economy.
Also, as the GDP is an indicator of how the economy is doing, businesses tend to use it to predict if the sector will grow or not.
Answer:
The first coupon payment is 37.25 dollars.
Explanation:
This problem require us to calculate the first coupon payment that the firm will make. This can be easily calculated by multiplying the applicable interest rate with face value of notes issued.
The applicable interest rate is six month libor + 0.25% (1/4)
so
First coupon payment = (7.45%)'/2 * 1000 = 37.25 dollars
'7.25% + 0.25% = 7,45%
