Solution :
![U(A, B) = 5A + 2B](https://tex.z-dn.net/?f=U%28A%2C%20B%29%20%3D%205A%20%2B%202B)
a). Bundles
= U ( _____ , 2), lie on the same indifference curve. Suppose missing numbers is x.
So, ![U(40, 5) = U(x, 2)](https://tex.z-dn.net/?f=U%2840%2C%205%29%20%3D%20U%28x%2C%202%29)
(40 x 5) + (2 x 5) = 50x + (2 x 2)
210 - 4 = 5x
![x = 41.2](https://tex.z-dn.net/?f=x%20%3D%2041.2)
So Alexander has
apples and
bananas. The indifference curve though
also include bundle.
Therefore, (41.2, 2)
b). ![$MRS_{BA} = \frac{MU_B}{MU_A}$](https://tex.z-dn.net/?f=%24MRS_%7BBA%7D%20%3D%20%5Cfrac%7BMU_B%7D%7BMU_A%7D%24)
![$=\frac{\delta U/\delta B}{\delta U/\delta A}$](https://tex.z-dn.net/?f=%24%3D%5Cfrac%7B%5Cdelta%20U%2F%5Cdelta%20B%7D%7B%5Cdelta%20U%2F%5Cdelta%20A%7D%24)
![$=\frac{2}{5}$](https://tex.z-dn.net/?f=%24%3D%5Cfrac%7B2%7D%7B5%7D%24)
= 0.4
So Alexander has
apples and
bananas with this bundle. Alexander would like to give up
unit apples for a banana.
Answer: Business profile
Explanation:
Business profile is referred to as or known as the profile that is designed in order to have an overview of the organization, business and their business plan. It tends to provide the readers with quick overview of the business, also including the values and the objectives, so as they tend to get the immediate feel of what they are doing and where they are headed.
Answer:
Gains from remeasuring a foreign subsidiary’s financial statements from the local currency, which is not the functional currency, into the parent company’s currency should be reported as a(n):_______
d. Part of continuing operations.
Explanation:
Gains from the remeasurement of a subsidiary's financial statements from the local currency to the parent company's currency should be reported as part of the continuing operations. It forms part of the current income. They are not deferred. It is translation adjustments that are reported as other comprehensive income, not gains from remeasurement. Remeasurement gains from a subsidiary's local currency to the parent's are also not extraordinary items.
Answer:
The main determinant is the NET IMPORT, if the net import is higher than the net export then countries like the United States of America will have a low standard of living,while if the net export is higher than the net import then Countries like the United States of America will enjoy a high standard of living.
COMPARED TO NET EXPORTS, COUNTRIES LIKE THE UNITED STATES OF AMERICA HAVE A LOWER NET IMPORT WHICH GIVES THEM A POSITIVE BALANCE OF TRADE.
Explanation: THE VOLUME OF IMPORT IS NOT THE MAIN CONCERN, THE MAIN CONCERN IS THE VOLUME OF NET IMPORT COMPARED TO THE VOLUME OF NET EXPORT COUNTRIES LIKE THE UNITED STATES OF AMERICA HAVE A HIGHER NET EXPORT THAN NET IMPORT WHICH GIVES THEM TRADE ADVANTAGE AND A POSITIVE BALANCE OF TRADE. With a good balance of trade a country like the United States of America will maintain and enjoy a high standard of living as the volume of imports is always lower than the value of what is exported.
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