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GalinKa [24]
3 years ago
13

Oscar makes purchases of an existing product (X) such that the marginal utility of the last unit he consumes is 10 utils and the

price is $5. He also tries a new product (Y) and the marginal utility of the last unit he consumes is 8 utils and the price is $1. The equal marginal principle suggests that Oscar should rev: 04_09_2018 Multiple Choice increase his consumption of product Y and decrease his consumption of product X.
Business
1 answer:
sammy [17]3 years ago
7 0

Answer:

INCREASE in Consumption of product Y

DECREASE in Consumption of product X

Explanation:

Based on the information given we were told that the already existing product (X) has a marginal utility of 10 utils as well as the price of the amounts of $5 while the new product (Y) has a marginal utility of 8 utils as well as the price of the amounts of $1 which means that PRODUCT Y marginal utility and price is lower than that of PRODUCT X marginal utility and price.

Therefore equal marginal principle suggests that Oscar should INCREASE his consumption of product Y and DECREASE his consumption of product X reason been that product Y has a lower marginal utility of 8 utils and the price of the amounts of $1 which means that his consumption of Product Y has to be INCREASED while product X on the other has a higher marginal utility 10 utils as well as the price of the amounts of $5 which means that his Consumption of Product X has to DECREASED.

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If the marginal propensity to consume is 0.80, what is the total implied increase in economic spending activity from a governmen
Rzqust [24]

\$500 is the total implied increase in economic spending activity from a government stimulus of \$100 billion

<u>Explanation: </u>

The median product preference tests the increase in expenditure due to changes in availability.

In increasing government expenditure, total economic investment would be increased by the scale of the budget multiplier. In other terms, the expenditure equation indicates how much GDP can increase as government expenditure increases.

The spending multiplier can be expressed as \frac{1}{1-M P C} \text { or } \frac{1}{M P S}

\text { Increase in GDP }=\frac{1}{1-M P C} \times \Delta G=\frac{1}{1-0.8} \times 100=\$ 500

So, the total implied increase in economic spending is \$ 500

In economics, marginal propensity to consume (MPC) is the proportion of an aggregate raise in pay that consumer spends on the consumption of services and goods, as opposed to saving it.

7 0
3 years ago
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Startups that find themselves trying to compete for value with large, established firms that have strong negotiating power often
Leokris [45]

Answer:

That statement is true.

Explanation:

Start ups tends to have overwhelmingly lesser capital compared to large/established firms. This means that The Large firms will be able to outperform the start ups in terms of marketing , advertising, and production efficiency.

This will make the start ups' product became less known and more expensive in the market.

Because of this, they tend to focus on the acquisition of intellectual property.

When a start up acquire  the right of intellectual property, larger companies could not legally create a similar product and compete with the start up directly.

This will make the start up able to sell their products without having to worry about being outperformed by the larger companies.

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3 years ago
Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at
sergeinik [125]

Answer:

Comer's tax liability for 2018 = $33300

Explanation:

Before determining Comer's tax liability for 2018, we need to understand what gross income is and what forms part of gross income. Gross income is total amount of income from various sources minus/plus and additions and deductions. Income from salary is earned in the ordinary course of work/business which is definitely part of gross income. Capital gain is refers to gain/profit/income from sale of capital assets such as property, shares, stocks, piece of land. Any gains and losses form part of gross income and capital losses are reported as deductions meant to reduce investors tax liability just as capital gains should be taxed.

Lets first calculate gross income and then apply tax rate to determine tax liability.

Gross income = salary + Short-term & long-term capital gains - short-term & long-term capital losses

GI = $64000 + $31000 + $9000+$15000 -$2000 -$6000

GI = $111000

Assuming the tax rate is 30%, the tax liability for the year is as follows:

Tax liability = $111000×30%

Tax liability = $33300

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