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Veseljchak [2.6K]
3 years ago
10

A restaurant offers an "all you can eat" meal for $9. Tyrone has eaten three servings and is trying to decide whether or not to

go back for a fourth. The economic way of thinking suggests that Tyrone should go back for the fourth serving if and only if:_______.
a. his marginal benefit of the additional serving is greater than zero.
b. his marginal benefit of the additional serving is at least $3.
c. his marginal benefit of the additional serving is $9 or more.
d. his total value from the meal exceeds $ Because information is costly to acquire.
Business
1 answer:
Andrej [43]3 years ago
7 0

Answer:

a. his marginal benefit of the additional serving is greater than zero.

Explanation:

While consuming an additional unit of a commodity : consumer compares it's marginal/additional benefit (utility) MU with marginal/ additional cost i.e price P. Hence, equilibrium is where : Marginal Utility MU = Price P

However in this case, 'all you can eat' i.e unlimited food at $9. So, there is no additional cost for consuming 4th serving.

So, Tyrone will take consumption decision based on only marginal benefit - will consume if the marginal benefit i.e additional satisfaction from the 4th serving consumption > 0, because it will increase her Total Benefit/ Total Satisfaction.

If MU / MB of 4th serving is negative: she will be worse off consuming 4th unit,  as it will reduce her total benefit/ satisfaction. If it's 0, she will be indifferent consuming 4th unit or not, as total benefit/ satisfaction will remain same.

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Which of the following statements is FALSE?
Vlada [557]

Answer:

Total return equals earnings multiplied by the dividend payout rate.

Explanation:

Total return is calculated as appreciation of price plus dividend paid, divided by the original price of the stock.

The income gained on a stock is the increase in its value along with dividend that is paid out. This is compared to the original price (denominator) to determine how much returns is realised on the stock.

Mathematically

Returns= {(New price- Old price) + Dividend} ÷ Old price

So the statement total return equals earnings multiplied by the dividend payout rate is false

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quester [9]

Answer:

The correct answer is the third option: a special journal entry that eases the burden of accounting for transactions in the next period.

Explanation:

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3 years ago
What does the term primary, secondary and tertiary mean in business?
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Hope this helps, have a good day. c;

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Answer:

A. $288

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