Answer:
Option c) how a consumer might trade off different levels of consumption of each of two goods, while staying at the same utility level.
Explanation:
This is the very definition of an indifference curve. The points in an indifference curve are the combinations of the quantities (level of consumption) of two different goods which will produce the very same utility to the consumer. The consumer will perceive any of those combinations as having the same utility for him.
For example, a usual graph of various indifference curves will look like the graph attached.
In this graph the combination of 2 pairs of shoes and 15 pants will be perceived as having the same utility as the combination of 5 pairs of shoes and 4 pants. Both are combinations in the same indifference curve, the green one, and the utility of any combination lying in that green curve will be rated the same: u = 1.
Answer:
marginal cost is 15 cents
Explanation:
given data
car rent = $29.95
distance d1 = 150 miles
cost = 15 cents per miles
distance d2 = 200 miles
to find out
marginal cost
solution
first we find here cost for driving d2
cost for 150 to 200 miles = 15 × 50
cost for 150 to 200 miles = 750 cents = $7.5
so
cost for driving d2 = $7.5 + $29.95
cost for driving d2 = $37.45
so
marginal cost will be
marginal cost = change in cost / chance in distance
marginal cost = 37.45 - 39.95 / ( 200-150)
marginal cost = 7.5 / 50 = 0.15
marginal cost is 15 cents
Answer:
5.62%
13.75%
Explanation:
According to the DDM method,
the value of a stock = [dividend x ( 1 + growth rate)] / [cost of equity - growth rate]
67 = 0.4(1.05) / r - 0.05
multiply both sides of the equation by r -0.05
67(r - 0.05) = 0.42
divide both sides of the equation by 67
r - 0.05 = 0.006269
r = 0.0563
= 5.63%
b. the cost of equity using the capm method =
risk free rate of return + beta x ( expected return - risk free return)
5% + 1.25 x (12 - 5) = 13.75%
Answer:
Explanation:
Based on the scenario being described within the question it can be said that in this situation the analyst should focus on fully disclosing all of the available data and show that, while sales remain strong, the company must address its customer service situation. That is because customers are the heartbeat of the company and without them the company will ultimately go bankrupt.
Answer:
Dr Inventory Purchases $250
Cr Trade Payables $250
Explanation:
At the time of the purchase, Inventory purchases which is an asset in nature has been increased and hence must be debited by $250 and similarly the Payable has been increased which is liability in nature and hence must be credited with $250. The entry would be as under:
Dr Inventory Purchases $250
Cr Trade Payables $250
