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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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Bob and Rob have started a food delivery business together called Grub Galore in their college town. They have not incorporated
Neko [114]

Answer:

Partnership Business

Explanation:

Partnership business is a business enterprise owned, managed and financed by a minimum of two individuals for the purpose of making profit.

Grub Galore is owned by Bob and Rob which makes it a partnership business.

Advantages

1) Profit is shared by partners only.

2) It is financed by more than one person which makes capital more available.

3) Decision making is faster company to limited liability companies

Disadvantages

1) Loss is shared among partners only.

2) Death of one partner might lead to the end of the business.

3) Disagreement between partners might end the business.

5 0
3 years ago
What percentage of businesses in America are home businesses?
Sladkaya [172]

Answer:

c

Explanation:

most are home businesses you can write off many things on taxes and have less overhead (bills and rent )

6 0
3 years ago
Sheffield Corp. has equipment with a carrying amount of $2500000. The expected future net cash flows from the equipment are $254
ololo11 [35]

Answer:

No impairment loss would be reported

Explanation:

The computation is shown below;

Impairment loss = carrying value - recoverable amount

Where,

The recoverable amount would be the higher amount of fair market value and value in use

So the recoverable amount would be $2,545,000

Now the impairment loss is

= $2,500,000 - $2,545,000

= -$45,000

Since the impairment loss comes in negative so no impairment would be recorded

7 0
2 years ago
Rahm's credit card issuer calculates interest based on the outstanding
Llana [10]

Answer:

Adjusted balance method.

Explanation:

Adjusted balance method is defined a method of calculating financial interest based on the outstanding balance at the end of the last billing period after the payments after all necessary adjustment to the account has been made.

This method of interest calculating leads to a reduced finance charge with time as payments are being made to offset and reduce the balance on the card

3 0
3 years ago
Freedom of enterprise Multiple Choice in a market system means that entrepreneurs can obtain and use economic resources without
Zina [86]

Answer: allows businesses, within broad limits, to choose what goods to produce

Explanation:

Free enterprise also referred to as the free market is a form of economy whereby prices, services and products, are determined by the market, and not the government. In free enterprise, the susinesses and services are free from the control of the government.

Things that are free means they are unconstrained, while a business means an enterprise. Therefore, the free enterprise is an economy whereby the businesses are free from the control of the government.

8 0
3 years ago
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