Answer:
D) Marginal utility of the last unit of each product consumed is the same.
Explanation:
To maximize utility with a given income constraint, a consumer must chose products to maximize utility. This can be done so that each extra dollar, which is the marginal income, spent on each of these products yields the equal marginal utility. For example if one product yields more marginal utility per marginal dollar spent, the consumer should reallocate their income so they consume more of this product and less of others, so much so that the utility derived from this product equals utility derived from other products.
Utility is maximized when these marginal utilities per marginal dollar spent coincide.
Hope that helps.
Answer:
The answer is letter "C": Producer surplus and consumer surplus will increase because the market becomes more efficient.
Explanation:
Named after English economist Arthur C. Pigou (1877-1959), the Pigovian Tax or corrective tax is a fine imposed against taxpayers for being part of activities that generate negative side effects. According to Pigou, these externalities play a negative role in the market to reach equilibrium.
It is true that the corrective tax encourages market efficiency but it doesn't imply the tax will lead to producer or consumer surplus, since those are actually influenced by basic supply and demand laws, making option "C" a false statement.
Answer:
A.Skis = 161.00
Boots = 108
Parkas = 50
B) Skis = 161
Boots = 106
Parkas = 50
Explanation:
(a)Skis = 212.00-32.00-19.00= 161.00
Boots = 145-29-8= 108
Parkas = 73.75-21.25-2.5=50
(b)Skis = 161
Boots = 106
Parkas = 50
Answer:
$85,050
Explanation:
The material handling cost of Merone Company is allocated on the basis of direct labor hours.
Expected Total direct labor-hours (710 labor hour per unit * 5,100 units produced + 210 labor hour per unit * 8,100 units produced
= 3,621,000 + 1,701,000
Total Expected direct labor hours = 5,322,000
Material handling cost per labor hour: $266,100 / 5322000 labor hours
= $0.05 per labor hour
$0.05 per labor hour * 1,701,000 labor hours of Prefab Brans
= $85,050
