Answer:
The correct answer is letter "B": consume more of good B and less of good A.
Explanation:
Marginal Utility is a common economic term referring to the extra benefit or satisfaction obtained by buying one additional unit of a good or service. Something has utility in economics if it meets any consumer desire or needs, whether for use or pleasure. People buy when the marginal utility is greater than the marginal cost, and when the marginal utility is less than the marginal cost, they do not.
Thus, if good A is twice the price of good B both having the same marginal utility, g<em>ood B should be consumed more because good A marginal utility is less than </em><u><em>its</em></u><em> marginal cost compared to good B</em>.
Answer:
Vera Incorporated
Change in annual operating income from discontinued business:
Annual Operating Income would reduce by $78,000.
Explanation:
a) Calculation of the Net Income Lost:
Loss of Contribution ($99,000)
Avoidable fixed cost $21,000
Reduction of Income ($78,000)
b) The line of purses contributes $80,000 towards the company's fixed cost. Therefore, discontinuing this line of business would lead to the loss of this steam of income. The amount of reduced operating income will be $78,000 ($80,000 - 2,000).
An example of "Framing" is that a person may reject an investment when it is posed in terms of risk surrounding potential gains, but may accept the same investment if it is posed in terms of risk surrounding potential losses.
<u>Explanation:</u>
A cognitive bias (systemic fault in one's thinking) where people suggest or decide whether the choices to be viewed as plus or minus implications, instance like loss or a gain and understood as Framing effect.
People tend to avoid risk when presenting a successful frame but look for risks when presenting a negative frame. Individuals will phrase their material in such a way as to force you to join.
For an instance, a musician could say millions are listening to them. You might want to participate because that is what so many other people do.
Explanation:
For international businesses to settle in a specific location and achieve success in the market, a market segmentation survey must be carried out. This research is essential to discover relevant characteristics about the community of a country or city for example, it is important that the company knows the population that lives in the place where it wants to carry out its activities, therefore, to know characteristics such as age group, tastes, culture, monthly income, etc. is so important for a company, be it a franchise, management contracts or electronic businesses, to be able to align its strategy and action plans in order to conquer the market of a region.
It is important that companies are aware of the peculiar characteristics of a community, in order to adapt to their tastes, customs and values, so that their business is well positioned and meets the desires and needs of a community.
In addition to paying attention to local customs and culture, international companies guarantee jobs for the local community, convenience and must take advantage of the advantages that a local offers, such as cheaper labor, government incentives, potential markets, and develop plans to reduce disadvantages, which can be the disqualified labor and the lack of interest and identification for your product or service.
