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Marta_Voda [28]
3 years ago
10

Lee saves most of his money from his paycheck; he forgoes restaurant meals, new clothes, and a new car, and he lives in a small

one-bedroom apartment. He understands that his utility is low now. However, his ______________ will give him _____ utility in the future.(A) intertemporal decision making; higher(B) intertemporal decision making; lower(C) planning; lower (D) time-preference decision making; higher
Business
1 answer:
jekas [21]3 years ago
8 0

Answer: Option A    

           

Explanation: In simple words, intertemporal decision making refers to the study of how the decision made by an individual today affects the choices that he or she have in the future. It is based on the assumption that less consumption today will bring significant increase in consumption tomorrow.

In the given case, despite of having enough income to lead a healthy lifestyle  in present,Lee decided to save his money in the future. This will lead to choices fro him that will give him higher utility.

Hence from the above we can conclude that the correct option is A.

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In an open-market operation, the Fed buys $10 million of government bonds from individual investors. If the required reserve rat
Fittoniya [83]

Answer:

$100 million ; $10 million

Explanation:

Required reserve ratio (r) = 10%

Worth of bond = $10,000,000

The smallest increase can be thought of as being the $10million generated from open market operation and could be held by the bank as reserve.

To calculate the largest increase in deposit:

Money multiplier * deposit (worth of bond)

Money multiplier = (1 / reserve ratio)

Money multiplier = (1 / 0.1) = 10

Increase in deposit = 10 * $10,000,000 = $100,000,000 ( $100 million)

6 0
3 years ago
How does price discrimination help cover fixed costs?
Svetradugi [14.3K]
For the case of a consumer with an inelastic demand curve, it is less costly to cater for them, hence reducing the production fixed cost. given that different customers will be charged differently for the same product, it is easy to cover for a low profit range.
3 0
3 years ago
uzz Appliances manufactures two products: Food Processors and Espresso Machines. The following data are available: ​ Food Proces
KonstantinChe [14]

Answer:

It will produce 1,500 espresso

and 1,800 food processors

Explanation:

\left[\begin{array}{ccc}&$processors&$espresso\\$Sales&155&245\\$Variable&90&180\\$CM&65&65\\$Constrain resource usage&0.5&0.333\\$CM per constrain&130&195\ \end{array}\right]

As the espresso provides more contribution per machine hours is better to first fullfil the demand for this product:

1,500 espresso / 3 per hous = 500 hours on espresso

1,400 - 500 = 900 hours to produce food processors

outcome: 900 x 2 = 1,800 units

5 0
3 years ago
The market value of​ Fords' equity, preferred stock and debt are $ 6 ​billion, $ 2 ​billion, and $ 12 ​billion, respectively. Fo
aniked [119]

Answer:

10.12 %

Explanation:

Weighted Average Cost of Capital (WACC) is the cost of permanent sources of capital pooled together. It shows the risk of the business and is used to evaluate projects.

WACC = Cost of equity x Weight of Equity + Cost of Debt x Weight of Debt + Cost of Preference Stock x Weight of Preference Stock

<u>Remember to use the After tax cost of debt :</u>

After tax cost of debt = Interest x (1 - tax rate)

                                    = 10​% x ( 1 - 0.40)

                                    = 6.00 %

<u>Cost of equity :</u>

Cost of equity = Return from Risk free security + Beta x Risk Premium

                        = 4.00 % + 1.8 x 8.00%

                        = 18.40 %

<u>Cost of Preference Stock :</u>

Cost of Preference Stock  = Dividend / Market return x 100

                                            = $2.50 / $ 25 x 100

                                            = 10%

therefore,

WACC = 18.40 % x 30 % + 6.00 % x 60 % + 10.00% x 10%

           = 10.12 %

thus,

Ford's weighted average cost of capital is 10.12 %

6 0
3 years ago
Many economists believe that the market for wheat in the United States is an almost perfectly competitive market. If one firm di
kiruha [24]

Answer:

Many economists believe that the market for wheat in the United States is an almost perfectly competitive market. If one firm discovers a technology that makes its wheat taste better and have fewer calories than all other wheat offered in the market, the wheat market would become less competitive because the products would no longer be similar in the wheat market- Option c.

Explanation:

Option c is the correct answer- the products would no longer be similar in the wheat market, the reason being that people with different taste preferences would prefer either of the two kinds of wheat available in the market, therefore making them less concentrated.

3 0
3 years ago
Read 2 more answers
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