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d1i1m1o1n [39]
3 years ago
6

Garcia is currently spending his entire lunch budget on 3 sodas and 4 hot dogs. At his current level of consumption, Garcia's ma

rginal utility for sodas is 5 utils and his marginal utility for hot dogs is 10 utils. In order to maximize his total utility, Garcia should
ANSWER: maintain his current level of consumption if the price of soda i $1 and the price of a hot dog is $2

I need an explannation on why this is correct
Business
1 answer:
MatroZZZ [7]3 years ago
3 0

Answer:

He should maintain this because since he is buying 3 sodas and 4 hot dogs they each one cost 2 and 1 respectively that would mean that for each dollar he spends he gets one utility.If he shifts the balance he might not max out his utility per dollar.

Explanation:

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7 0
4 years ago
Ben and Sam Jenkins formed a partnership. Ben contributed $8,000 cash and a used truck that originally cost $35,000 and had accu
Airida [17]

Answer:

The combined total capital that would be recorded on the partnership books for the two partners is $79,000

Explanation:

Partnership : In partnership, there are two or more members who are called partners which are ready to share the profit or loss percentage according to their agreed ratio

The combined total capital for both partners is shown below:

= Contributed cash + truck fair value + garage fair value

= $8000 + $ 16,000 + $55,000

= $79,000

The other cost like purchase price, depreciation, construction cost is irrelevant for computation. Thus, these cost will not be considered.

Hence, the combined total capital that would be recorded on the partnership books for the two partners is $79,000

3 0
4 years ago
What would you expect to happen to the mix between internal financing (where companies use their own funds such as retained earn
valentinak56 [21]

Answer:

With the large increase in financial market uncertainty, the mix between internal financing and external financing for new investment projects will tether towards internal sources of funding.

Explanation:

This means that the larger proportion of finance for new investment projects must come from internal sources rather than external sources.  The companies will, therefore, experience much more pressure to generate and retain sufficient profits than it would have experienced otherwise.  While this looks like the best way to go, the possibility of success depends on the chunk of the internally-generated funds that the companies already have.

4 0
3 years ago
Personal Care Products recently introduced a new acai berry shampoo. Rinn, director of new product development, has just reviewe
Elden [556K]

Answer: C. Foster an innovative culture and climate that permits experimentation, risk taking and failure.

Explanation:

This culture will help the workers to move the firm forward in terms of taken all necessary steps for success and not been deter in the event of failures.

4 0
3 years ago
Factor Co. can produce a unit of product for the following costs: Direct material $ 8.40 Direct labor 24.40 Overhead 42.00 Total
Masja [62]

Answer: Buy since the relevant cost to make it is $46.45.

Explanation:

given data:

Direct material = $ 8.40

Direct labor = 24.40

Overhead = 42.00

Total costs per unit = $ 74.80

had to complete the question.

Multiple Choice

Buy since the relevant cost to make it is $63.85.

Make since the relevant cost to make it is $46.45.

Buy since the relevant cost to make it is $46.45.

Make since the relevant cost to make it is $33.40.

Buy since the relevant cost to make it is $33.40.

Solution:

Relevant cost to consider = Direct Material + Direct labor + (Overhead * 30%)

= $8.70 + $24.70 + ($43.50 * 30%)

= $46.45

3 0
3 years ago
Read 2 more answers
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