1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
anygoal [31]
3 years ago
6

Because consumers behave in a rationally self-interested manner, the consumer will purchase a good or service ______.

Business
1 answer:
amm18123 years ago
5 0

Because consumers behave in a rationally self-interested manner, the consumer will purchase a good or service when the marginal benefit is greater than the marginal cost.

<h3>What is marginal cost and marginal benefit? </h3>

Marginal benefit is the benefit a consumer derives from increasing consumption of a good or service by one unit. Marginal cost is the change in total cost when consumption is increased by one unit.  

According to economic theory, a rational consumer would consume a good as long as marginal revenue is greater than marginal cost. Utility is maximised when marginal revenue is equal to marginal cost.

To learn more about marginal revenue, please check: brainly.com/question/7781429

You might be interested in
Suppose two athletes each sign 10-year contracts for $80 million. In one case, we’re told that the $80 million will be paid in 1
marusya05 [52]

Answer:

The athlete with equal installments got the better deal.

Explanation:

Two athletes each sign 10-year contracts for $80 million.

In one case, we’re told that the $80 million will be paid in 10 equal installments.

In the other case, the $80 million will be paid in 10 installments, but the installments will increase by 5 percent per year.

The one with equal installments will get $8 million every year.

But the one with increasing installments will get smaller payments initially as his payments were to be increased by 5% each year.

Though the total value of both the annuities will remain the same.

7 0
3 years ago
Steven consumes only two goods, both of which are normal goods. He is currently maximizing his utility in consumption of both go
zzz [600]

Answer:

The answer is: remain the same

Explanation:

The marginal utility of a good or service is how much better we feel when consuming an extra unit of that good or service. For example if we are very thirsty, the marginal utility of consuming a can of Coke is very large, but once our thirst is quenched, an extra can of Coke will not provide use with that much satisfaction as before.

If the price of a substitute good increases, the marginal utility of the good whose price didn't change, will remain the same.

Let's go back to the Coke example. An extra can of Coke will give me 5 more satisfaction units (I'm assuming I can measure satisfaction) and an extra slice of pizza will give me 7 more units of satisfaction. If the price of Coke increases from 50 cents to $1, its marginal utility will decrease. I will buy more pizza because the satisfaction I get from drinking Coke is now smaller.

4 0
3 years ago
The expected average rate of return for a proposed investment of $5,190,000 in a fixed asset, using straight-line depreciation,
Scorpion4ik [409]

Answer:

15%

Explanation:

Average rate of return = average net income / amount invested

average net income = $15,570,000 / 20 = $778,500

Amount invested = $5,190,000

$778,500 $5,190,000  = 0.15 = 15%

4 0
3 years ago
Differences between management and leadership include leaders are emotionally involved, whereas managers have low emotional invo
stich3 [128]
Thanks for adding to my knowledge :)
4 0
3 years ago
Read 2 more answers
Assume a companys income statefor year 9 is as follows:
Fofino [41]

Answer:

14.91 and 24.77%

Explanation:

The computation of the company interest coverage ratio is shown below:-

Interest coverage ratio = Earning before interest and tax ÷ Interest

= $161,000 ÷ $10,800

= 14.91

Operating profit margin = (Earning before interest and tax ÷ Revenue) × 100

= $161,000 ÷ $650,000 × 100

= 24.77%

Therefore we have applied the above formula and hence option is not available.

6 0
3 years ago
Other questions:
  • Which of the following is not a factor of production?
    7·2 answers
  • It is argued that a policy of tax reduction will result​ in: A. A shift from LRAS 2 to LRAS 1 with a lower price level and highe
    10·1 answer
  • Sarah works for an architectural firm. The partners in the firm have always drawn the plans for projects by hand. While Sarah le
    11·1 answer
  • Customers today want separate prices for each service element, and they also want the right to select the elements they want. Cu
    15·1 answer
  • Which of the following formulas is used to calculate the materials price variance? a.(Actual Price × Actual Quantity) – (Standar
    9·1 answer
  • Ben and Carla Covington plan to buy a condominium. They will obtain a $229,000, 20-year mortgage at 5.0 percent. Their annual pr
    5·1 answer
  • Which type of business is best for Juanita to start? A corporation, because she needs a large investment to get started a sole p
    5·2 answers
  • HELP PLEASE NOW!!!!!List the four stages of ability development. Provide an example of a person developing a specific ability. W
    6·1 answer
  • Lyle deposited a check for $75.26. He’ll use the check register to record his transaction. What will be his new balance? $821.00
    9·2 answers
  • Which of the following values should be inserted to correctly balance the ledger shown below?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!