Answer: Option B
Explanation: Marginal revenue is the additional revenue from selling one more unit.
A. Marginal revenue equals zero means there is no additional revenue from selling one more unit, the demand could be positive.
B. Negative marginal revenue shows that the revenue earned from selling additional unit is less than the additional unit sold before.
C. Positive marginal revenue shows that the revenue earned from selling additional unit is more than the additional unit sold before.
D. Marginal revenue increases when price and quantity both increases.
Answer:
Bundle 1: Beer = 2; Pizza = 6
Bundle 2: Beer = 3; Pizza = 4
Bundle 3: Beer = 4; Pizza = 3
Bundle 4: Beer = 12; Pizza = 1
Explanation:
Given that;
Lisa utility function UF(X,Y) = 4XY
where;
X = beer
Y = Pizza
The utility level = 48
so, UF(X,Y) = 4XY
putting different values of X (i.e beer ) given to us in this equation, we can calculate the values of Y(i.e pizza) to fulfill the utility
So; when X (beer) = 2
48 = 4×2×Y
48 = 8Y
Y = 48/8
Y = 6
Thus, Bundle 1: Beer = 2; Pizza = 6
when X (beer) = 3
48 = 4×3×Y
48 = 12 Y
Y = 48/12
Y = 4
Thus; Bundle 2: Beer = 3; Pizza = 4
when X (beer) = 4
48 = 4×4×Y
48 = 16 Y
Y = 48/16
Y = 3
Thus; Bundle 3: Beer = 4; Pizza = 3
when X(beer) = 12
48 = 4×12×Y
48 = 48 Y
Y = 48/48
Y = 1
Thus; Bundle 4: Beer = 12; Pizza = 1
Answer:
Explanation:
March 1
Cash 1700
Share Capital 1700
To record the issuance of shares
March 3
Equipment 1400
Cash 1400
To record the purchase of equipment on cash
March 5
Rent Expense 470
Cash 470
To record the rent expense
March 7
No entry neither cash nor serves are provided.
March 12
Purchase 117
Cash 117
To record the purchases
March 15
Cash 670
Income 670
To record the services Income.
March 19
Advance 570
Payable 570
To record the advance cash receipt for services not yet provided thus advance is our liability.
March 25
Payable 228 570/25*10
Income 228
To record the services income against advance given.
March 30
Utilities Expense 82
Cash 82
To record the monthly utilities expense
March 31
Dividend Pay 85
Cash 85
To record the payment of dividend.
2)
<u>Share Capital Account</u>
Opening = 0
Cash 1700
<u>Closing=1700</u> <u> </u>
<u>Cash Account</u>
Opening = 0
share capital 1700 Equipment 1400
Rent 470
Purchase 117
Income 670
Adv. Pay 570
Utilities 82
Dividend 85
<u>Closing balance- 786</u>
<u>Equipment</u>
Opening = 0
Cash 1400
<u>Closing-1400</u>
<u>Rent Expense</u>
Opening = 0
Cash 470
<u>Closing-470</u>
<u>Purchase Expense</u>
Opening = 0
Cash 117
<u>Closing-117</u>
<u>Income Account</u>
Opening = 0
Cash 670
Payable 228
<u>Closing- 898</u> <u> </u>
<u>Payable Account</u>
Opening = 0
Cash 570
Income 282
<u>Closing-342</u> <u> </u>
<u>Utilities Expense</u>
Opening = 0
Cash 82
<u>Closing-82</u>
<u>Dividend</u>
Opening = 0
Cash 85
<u>Closing-85</u>
3) Trail Balance
Head Of Account Debit Credir
Cash 786
Share Capital 1700
Equipment 1400
Rent Expense 470
Purchases 117
Income 898
Payable 342
Utilities 82
Dividend 85
Total 2940 2940
Answer:
1. B
2. E
Explanation:
1. Consumer or buyers use the extended decision making as it is that decision making which involves high level of the purchase involvement, extensive internal and the extensive information search with complex evaluation of the alternatives. In case of automobiles, buyers will choose the extended decision making as it is expensive, infrequently purchased products.
2. As there is involvement of high risk of financial loss in the future purchasing power, for people or consumer, the automobiles have the situational involvement, it is the short term state which directs towards the attaching relevance of a situation or person. In other words, it is an state where, it establish a level of involvement when a consumer or person think of a specific situation or object.
