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Pie
3 years ago
13

Optimal Choice of Milk and Honey. The price of milk is $2 per gallon, and the price of honey is $4 per jar. Hal's income is $16.

Assuming that Hal spends all of his income on honey and milk, the combination of milk and honey that will maximize his total utility is _____ jars of honey and _____ gallons of milk.
Business
1 answer:
yarga [219]3 years ago
7 0

Answer:

Assuming that Hal spends all of his income on honey and milk, the combination of milk and honey that will maximize his total utility is <u>2</u> jars of honey and <u>4</u> gallons of milk.

Explanation:

This question is missing a table that should be as follows:

quantity    total util.       marginal        quantity    total util.       marginal  

of milk        from milk     utility per $   of honey   from honey  utility per $

1                     32                  16                  1                  44                11

2                    60                  14                 <u> 2                 84                10</u>

3                    84                  12                  3                120                 9

<u>4                   104                  10</u>                  4                152                 8

5                   120                   8                  5                180                 7

6                   132                   6                  6                204                6

7                   140                   4                   7                224                5

8                   144                   2                   8                240                4

We should purchase quantities that yield the same marginal utility per dollar spent, options are:

  • <u>4 gallons of milk and 2 jars of honey ⇒ total cost = $8 + $8 = $16</u>
  • 5 gallons of milk and 4 jars of honey ⇒ total cost = $10 + $16 = $26
  • 6 gallons of milk and 6 jars of honey ⇒ total cost = $12 + $24 = $36
  • 7 gallons of milk and 8 jars of honey ⇒ total cost = $14 + $32 = $46

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Explanation:

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1. Assume that the money demand function is (M / P)d = 2,200 – 200r, where r is the interest rate in percent. The money supply M
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Answer:

r= 3

Explanation:

Due that the level price does not changed, the first thing that you have to do to find the equilibrium is put the two equations with an equal

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3 0
3 years ago
The Besnier Company had $250 million of sales last year, and it had $75 million of fixed assets that were being operated at 80%
Elina [12.6K]

Answer:

$312.5 million

Explanation:

Given that,

Besnier Company's sales last year = $250 million

Fixed assets last year = $75 million

Previous operating capacity of fixed assets = 80%

Sales at full capacity:

= Previous sales ÷ Previous Capacity

= $250 million ÷ 80%

= $312.5 million

Therefore, if the company had operated at full capacity then the sales could have been $312.5 million.

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Classify the following cash flows as either operating, investing, or financing activities assume indirect method.1. Received cas
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Answer and Explanation:

The classification is as follows

1. Investing activities  : Since there is cash received from the sale of equipment so the same is to be shown in the investing activities in a positive amount

2. Investing activities : Since there is cash paid for buy the long term investment so the same is to be shown in the investing activities in a negative amount

3. Financing activities : Since the cash is received so the same is to be shown in the financing activities in a positive amount

4. Financing activities  : Since the issuance of preferred stock is there so the same is to be shown in the financing activities in a positive amount

5. Financing activities  : Since the cash is paid so the same is to be shown in the financing activities in a negative amount

6. Operating activities : Since the cash is received so the same is to be shown in the operating activities in the direct method as a positive amount  

7. Operating activities  : Since the inventories are purchased so the same is to be shown in the operating activities in the direct method as a negative amount  

8. Operating activities : Since the cash is paid so the same is to be shown in the operating activities in the direct method as a negative amount  

9. Operating activities  : Since the cash is paid so the same is to be shown in the operating activities in the direct method as a negative amount  

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4 0
3 years ago
​India's Current Account. Use the following balance of payments data for India from the​ IMF: LOADING.... What is​ India's balan
s344n2d4d5 [400]

Answer:

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Explanation:

2004 balance on services

= Services Credit, (exports) - Services Debit, (imports)

= 38,281 - 35,641

= $2,640 million

2009

= 92,889 - 80,349

= $12,540 million

2014

= 156,252 - 137,597

= $18,655 million

3 0
3 years ago
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