Correct. The more goods and services will demand more labor for companys to put out the goods and services.
Buy what u need when u need it not what u want when u want my dad always said
Answer:
Variable cost per unit = $1.5 per unit
Fixed cost = $14,558
Explanation:
Variable cost per unit
= cost at high activity - cost at low activity/High activity -low activity
=$(74,798- $41,663) / (40,160 -18,070) units
= $1.5 per unit
Fixed cost
Total fixed cost = cost at high activity - ( vc per unit × high activity)
= 74,798 - (1.5 × 40,160)
= $14,558
Variable cost per unit = $1.5 per unit
Fixed cost = $14,558
Answer:
∵ MU A / P A > MU B / P B
∴ A purchased & consumer more , B purchased & consumed less.
Explanation:
Consumer is at utility maximising equilibrium, where Marginal Utility per unit of price spent is equal for both goods consumed by consumer.
MU A / P A = MU B / P B
MU A / P A = 16 / 2 = 8
MU B / P B = 24 / 4 = 6
In above case : MU A / P A > MU B / P B [ ∵ 8 > 6 ]
This implies consumer is getting more utility (satisfaction) per unit of price spent on Good A , than that of Good B.
So, consumer Thompson will consumer more of Good A & less of Good B.