The decision-making process followed by consumers to maximize utility assumes that the consumer has a limited income, the consumer is able to rank their preferences, the consumer behaves rationally.
The term utility used by the economist as a measure of satisfaction, happiness, a joy of a person.
Answer:
D. Lessor is not obligated to compensate the lessee for the excess.
Explanation:
A lease agreement is a contract that allows for the use of an asset but does not convey ownership rights of the asset. It is a contract that exist between a lessor and a lessee that allows the lessee rights to the use of a property owned or managed by the lessor for a period of time.
If the residual value of a leased asset turns out to be more than the amount guaranteed by the lessee, the: Lessor is not obligated to compensate the lessee for the excess. because the lessee is responsible for the condition of the property during the lease period.
Answer:
Option (A) is the correct answer to this question.
Explanation:
The cessation of the Sporty line would forfeit the profits produced by the Sporty line business, but the business (Beautiful Watches) will have to bear the $38,000 fixed expenses involved by Spotify Watches.
However, if production continued, the Sporty watches would have suffered a loss of $32,000. The company will bear fixed costs regardless of whether the company continues or discontinues the Sporty line market.
Accordingly, the gross operating profits should have been
= Total operating expenses - ( $ 38000 - $ 32000)
= $ 55000 - ( $ 38000 - $ 32000)
= $ 55000 - $ 6000
= $ 49000
There is also a fall of $6000 ($55000-$49000) in operating profits.
Other options are incorrect because they are not related to the given scenario.
The rate of interest that Khalil Hamid Ali paid for borrowing $12,000 and paying $1,890 as interest expense for 1.5 years is <em>10.5%.</em>
Data and Calculations:
Amount borrowed = $12,000
Interest paid = $1,890
Time period = 1.5 years
Rate of interest = 10.5% ($1,890/$12,000 x 1/1.5)
Thus, the rate of interest that Khalil Hamid Ali paid for borrowing $12,000 and paying $1,890 as interest expense for 1.5 years is <em>10.5%.</em>
Learn more about rate of interest here: brainly.com/question/25545513
