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pav-90 [236]
3 years ago
11

Suppose that the price of a rental car (Prc) is $50 while the price of a flight (Pfl) is $85. Also, suppose that the marginal ut

ility of a rental car (MUrc) is 20 utils while the marginal utility of flying (MUfl) is 30 utils. What is the best advice for this consumer?
Business
1 answer:
Masteriza [31]3 years ago
6 0

Answer:

Consumers should choose to take the flight.

Explanation:

The price of a rental car = $50

Marginal utility from the car = 20 utils

Now find the per dollar utility from car = $50 / 20 = 2.5

The price of a flight = $85

Marginal utility from the flight = 30 utils

Now find the per dollar utility from flight = $85 / 30 = 2.83

Since the per dollar, MU is greater in the case of flight so consumers should choose to take the flight.

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Businesses decrease their incentives that will lead to minimizing their ability to carry out their part for social responsibility of the triple bottom line.

The bottom line is an obligation on businesses to not just look for their profit but include and maintain a good balance between these factors:

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3 years ago
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stich3 [128]

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8 0
3 years ago
Last year, Candle Corp had $200,000 of assets, $300,000 of sales, $20,000 of net income, and a debt-to-total-assets ratio of 40%
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