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Pepsi [2]
3 years ago
7

Calculate the Marginal Utilities and Marginal Rate of Substitution for each of the Utility functions below. (Remember, marginal

utility of a given good gives us the impact of an additional unit of that good on the total utility.)
Business
1 answer:
baherus [9]3 years ago
8 0

Answer:

The Marginal Rate of Substitution looks at the balance in changes of good 1 and good 2 required for the consumer to be indifferent between his/her consumption bundles before and after trade. But what does indifference mean? It means that utility for both bundles is exactly equal. Therefore, ΔU=0

There is some (negative) change in utility resulting from giving up a little bit of good 2, and as we saw in the previous section, this change equals MU₂Δx₂, Similarly, there is some (positive) change in utility from getting a little more of good 1, MU₁Δx₁ which equals Since we want to be indifferent before and after the trade, it must be that the sum of these changes equals zero. That is, U=MU₁Δx₁ + MU₂Δx₂ = 0, now the MRS can be find from this equation of marginal utilities!

First, MU₁Δx₁ from both sides. Then, MU₂Δx₂= -MU₁Δx₁  Next, divide both sides by x₁ and MU₂. The result is Δх₁/Δх = - MU₁/ MU₂  The left hand side is just the MRS, and the right hand side is the negative ratio of marginal utilities. In the MRS section, we learned why the left hand side would automatically be negative.

Explanation:

The right hand side needs the negative sign because marginal utility is positive for goods, so the ratio of marginal utilities is always positive.

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Hilton's​, a​ home-improvement store​ chain, reported these summarized​ figures:_______.
Nataly_w [17]

Answer:

a. 2017 ⇒ 1.50

   2016 ⇒1.58

b. Deteriorate

Explanation:

a. Current ratio 2017

= Current Assets / Current liabilities

= 6,708,700 / 4,470,000

= 1.50

Current ratio 2016

= 5,848,000 / 3,700,000

= 1.58

b. The current ratio went from 1.58 in 2016 to 1.50 in 2017 which would mean that it deteriorated.

8 0
3 years ago
Fenland Co. plans to retire $120 million in bonds in five years, so it wishes to fund a savings account at the beginning of each
solniwko [45]

Answer:

240,000,000

Explanation:

Each year you would need to invest 240,000,000 into the saving account over a period of five years to get to the desired amount. If they are only putting in 12%of the retirement funds that would 14,400,000 and that would take about 8 years.

8 0
3 years ago
when firms manage the return of goods from consumers either because they are defective or for recycling purposes, they are invol
Vladimir [108]

Reverse logistics is the process by which businesses handle the return of consumer items for recycling or because they are defective.

Supply chain management that sends goods back from buyers to sellers or producers is known as reverse logistics. Reverse logistics are needed for procedures like returns or recycling after a customer receives a product. Reverse logistics begin at the customer and work their way backward through the supply chain to the producer or the distributor. Reverse logistics can also refer to procedures where the customer is in charge of the product's final disposal, such as recycling, refurbishing, or resale.

To learn more about Reverse Logistics here

brainly.com/question/15888400

#SPJ4

6 0
1 year ago
Sheridan Company has recently tried to improve its analysis for its manufacturing process. Units started into production equaled
klemol [59]

Answer: $3.40

Explanation:

Based on the information given in the question, the materials cost per unit will be calculated thus:

First, we'll calculate the completed units which will be:

= 18500 - 1400

= 17100

Ending inventory = 1400 units

Equivalent Production Unit with respect to Material = (17100 x 100%) + (1400 x 100%)

= 18500 Units

Material Cost Per Unit will be:

= Total Material Cost / Equivalent Production Unit

= $62900 / 18500

= $3.40 per unit

The material cost per unit is $3.40

7 0
3 years ago
You observe that the inflation rate in the United States is 1.5 percent per year and that T-bills currently yield 2.0 percent an
Kamila [148]

Answer:

(a) 7.5%

(b) 8.5%

(c) 9.5%

Explanation:

(a) Foreign country inflation rate - US inflation rate = Foreign country risk free rate - US risk free rate

Lets foreign country inflation rate = X

X - 1.5 = 8 - 2

X - 1.5 = 6

X = 6 + 1.5

   = 7.5%

(b)

Lets foreign country infllation rate = X

X - 1.5 = 9 - 2

X - 1.5 = 7

X = 7 + 1.5

   = 8.5%

(c)

Lets foreign country inflation rate = X

X - 1.5 = 10 - 2

X - 1.5 = 8

X = 7 + 1.5

   = 9.5%

6 0
3 years ago
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