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2 years ago

After eating four slices of pizza, you are offered a fifth slice for free. You turn down the fifth slice.

Business

1 answer:

Nadusha1986 [10]2 years ago

3 0

Answer:

The correct answer is letter "D": marginal utility is positive for the 4th slice and negative for the 5th slice.

Explanation:

Marginal Utility refers to the additional benefit or satisfaction gained from consuming one more unit of a good or service. In economics, something has utility if it satisfies any consumer wants or needs whether for usefulness or pleasure. It is a subjective term.

If the marginal utility is positive, consumers would want to acquire more of the good or service but if negative they will stop consuming it. Thus, the marginal utility for the 4th pizza slice is positive but the marginal utility for the 5th slice is negative.

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Emma Clumsy, the insured, makes a contract with Rest in Peace Insurance Company, the insurer, whereby Emma will pay quarterly pr

masya89 [10]

Answer:

Henry is the intended beneficiary of the insurance policy and as such, he is bound to the time limitations and all the other clauses included in the contract.

Explanation:

Intended beneficiaries are third parties that can benefit from a contract. Third parties are not part of the contract and may not even know that they were included as beneficiaries in it, but they are bound by all the legal clauses included in the contract. They must be included in the contract and all the benefits they might obtain have to be explicitly established.

5 0

2 years ago

Eric's income increased from $40,000 to $50,000 per year. Eric's consumption of tickets to pro football games increased from two

ira [324]

Answer:

By the midpoint formula, his income elasticity of demand for pro football game tickets is equal to <u>+3</u>, and football game tickets are <u>normal</u> goods.

Explanation:

The formula for calculating income elasticity of demand using the midpoint method is:

income elasticity of demand = {change in quantity demanded / [(old quantity + new quantity) / 2]} / {change in income / [(old income + new income) / 2]}

= {2 / [(2 + 4) / 2]} / {10,000 / [(40,000 + 50,000) / 2]} = (2 / 3) / (10,000 / 45,000) = 0.67 / 0.222 = 3

when the income elasticity of demand is higher than 1, the goods are normal goods.

6 0

1 year ago

Problem 16-17 Firm Value [LO2] Change Corporation expects an EBIT of $25,000 every year forever. The company currently has no de

PolarNik [594]

Answer and Explanation:

The computation is shown below:

a. The current value of the company is

As it is mentioned that the company has no debt that means it is unlevered firm that is equivalent to unlevered value of the company

Unlevered value of the firm = Vu

Vu = EBIT × (1 - tax rate ) ÷ unlevered Cost of Equity

= EBIT × (1 - tax rate ) ÷ R0

= $25,000 × (1 - 0.22 ) ÷ 12%

= $162,500

b-1.

The computation of the value of the firm in the case when the value of the firm is equivalent to 50% of unlevered value

VL = Vu + Borrowing × tax rate

where,

Debt = borrowing = 50% × unlevered value of company

Debt = borrowing = 50% x Vu

So,

VL = Vu + Borrowing x tax rate

VL = $162,500 + ($162,500 × 50%) × 22%

= $162,500 + $17,875

= $180,375

b-2.

The computation of the value of the firm in the case when the value of the firm is equivalent to 100% of unlevered value

Levered value of the firm VL

VL = Vu + Borrowing × tax rate

Debt = borrowing = 100% × unlevered value of company

Debt = borrowing = 100% × Vu

So,

VL = Vu + Borrowing x tax rate

= $162,500 + ($162,500 × 100%) × 22%

= $162,500 + 35,750

= $198,250

C.1.

The computation of the value of the firm in the case when the value of the firm is equivalent to 50% of the levered value

VL = Vu + Borrowing × tax rate

= Vu + (VL × 50%) × tax rate

VL = Vu + (VL × 50%) × 22%

VL = Vu + 0.11 VL

VL - 0.11 VL = 162,500

0.89 VL = 162,500

VL= 182,584.27

C.2.

The computation of the value of the firm in the case when the value of the firm is equivalent to 100% of the levered value

Levered value of the firm VL

VL = Vu + Borrowing x tax rate

VL = Vu + (VL × 100%) × tax rate

= Vu + (VL × 100%) × 22%

= Vu + 0.22 VL

VL - 0.22 VL = 162,500

0.78 VL = 162,500

VL= $208,333.33

6 0

2 years ago

Upon taking over the company, CEO Khosrowshahi said, "Rather than ditching everything, I'm focused on preserving what works whil

nata0808 [166]

Answer: b. evidence-based

Explanation:

Evidence based management refers to the use of pragmatism in the making of decisions and basing those decisions on actual evidence.

The new Uber CEO Khosrowshahi, decided to hold meetings with the staff in other to get to find out what they thought was wrong with the company and then using this evidence he decided to preserve what worked and remove what doesn't. He therefore used evidence in his decision.

4 0

1 year ago

A speed boat bought for $13,000 depreciates at 10% per annum compounded continuously. What is its value after 7 years? Round the

xz_007 [3.2K]

Answer:

$3,900

Explanation:

A speed boat bought for $13,000 depreciates at 10% per annum compounded continuously. What is its value after 7 years?

Round the answer to nearest dollar.

Amount of depreciation per annum = 13,000 x 10% = $1,300

Amount of depreciation in 7 years = 1,300 x 7 = $9,100

Value of Speed boat after 7 years = 13,000 - 9,100 = $3,900

6 0

1 year ago