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soldi70 [24.7K]
3 years ago
14

A rational buyer will: buy a product until the marginal benefit of consuming the product is less than the price of the product.

buy the product only when the marginal benefit of consuming the product is twice as much as the price of the product. not consider costs versus benefits when purchasing a product. keep buying a product until marginal benefit equals price.
Business
1 answer:
-Dominant- [34]3 years ago
8 0

Answer:

keep buying a product until marginal benefit equals price

Explanation:

A rational consumer would continue to consume a product until the marginal benefit of the last unit consumed equal marginal cost. At this point, utility is maximised.

For example, if the price of a bottle of water is $4. The utility you derive from the first bottle is 6. So you consume one more bottle, the utility you derive from the second bottle is 5. you buy a third bottle. The utility you derive from the 3rd bottle is 4. At this point utility is maximised and you should stop consuming more water

If you consume a 4th bottle, the utility you would derive from it would be 3 utils. This doesn't make sense because you are paying more for the bottle when compared to the utility you would derive from it

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Answer:

Y= 6000 + 0.75X

Explanation:

High and low cost technique

Using the a high and low technique, total cost can be analysed and separated into fixed and variable portion. This analysis helps in the forecast of cost and therefore important for the preparation of budget.

<em>Variable cost of maintenance</em>

= (Cost at high activity - Cost at low activity)/ (high activity - low activity)

VC per act. = ( $15000 - $12000)/(12,000-8000)

                   = $0.75 per activity

<em>Fixed cost of maintenance</em>

= Total cost at high activity - (VC per act × high activity)

=  $15,000 - ( $0.75 ×  12,000)

=   $6,000

The cost formula will be:

Y= 6000 + 0.75X

Where Y = maintenance cost, X= level of activity

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3 years ago
In which investment category are fair values and subsequent growth of an investee not relevant for reporting?
Iteru [2.4K]

Answer:

The correct answer is <em>held-to-maturity securities</em>.

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Securities held until expiration (HTM) are purchased to be held until expiration. The management of a company could invest in a bond that they plan to hold until they expire. As a result, there are different accounting treatments for retained securities until maturity compared to securities that must be settled in the short term.

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Explanation:

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Rice Co. was incorporated on January 1, Year 6, with $500,000 from the issuance of stock and borrowed funds of $75,000. During t
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Answer:

B) $617,000

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Answer:

When sending an email, Ellis restates the subject in the body of the message.

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Email has some standard guidelines for preparing the email.

It includes that the subject shall also be defined again in the descriptive area, where entire content of email is discussed.

There must be a descriptive line showing the purpose of email.

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