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Stolb23 [73]
2 years ago
10

A consumer has two basic choices: rent a DVD movie for $4.00 and spend 2 hours watching it, or spend $13 for a miniature golf ga

me that takes 1 hour. If the marginal utilities of the movie and the miniature golf game are equal, and the consumer values time at $12 an hour, the rational consumer will most likely
Business
1 answer:
riadik2000 [5.3K]2 years ago
3 0

Answer:

Play miniature golf instead of renting the movie.

Explanation: Marginal utility is the added satisfaction derived from spending an extra unit of money.

Now we can see that the consumer values time at $12 per hour, and they'll spend a total of $24 on watching the DVD because this will take 2 hours, the consumer will also spend just $12 on miniature golf because this takes just one hour.

Now factoring the costs of the DVD and the miniature golf into the equation, we have:

Total cost of renting and watching the DVD:

$4 + $24 = $28

Total cost of playing miniature golf:

$13 + $12 = $25

We can see that the consumer will spend less in playing miniature, while getting the same marginal utility with the other option.

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Your grandfather wants to establish a scholarship in his father’s name at a local university and has stipulated that you will ad
Paul [167]

Answer:

the answer for the first question is $166667.

the answer for the second question is $210526

the answer for the third question is An inverse.

Explanation:

given information that i will invest in a $10000 scholarship that will pay forever.

the interest rate charged is 6.00% per annum therefore this is a perpetuity present value problem where there is streams of income forever therefore we use the formula :

Pv of perpetuity= Cf/r

where Cr is the cash flows payed by the single investment forever in this case $10000 then r is the interest rate of the investment amount which is 6% in this case.

Pv of Perpetuity= $10000/6%

                           =$166667 therefore i must invest this amount to get the scholarship running with streams of $10000 forever.

in the second problem if now the interest rate is changed from 6% to 4.75% then the amount to be invested would be :

Pv of perpetuity = $10000/4.75%

                              =$210526 therefore this is the amount to be invested for a forever $10000 stream of incomes for a scholarship.

the relationship is indirect cause as the interest rate decreases the present value of the perpetuity that must be invested increases.

3 0
2 years ago
Bob owns a warehouse that is used in business while rebecca owns land. bob exchanges the warehouse for the​ land, which will be
strojnjashka [21]
<span>A. Compute Bob's realized gain (loss) on the exchange. $320,000 + $40,000 + $80,000 = $440,000 - that is selling price $440,000 - $240,000(basis) = $200,000 - that is realized gain B. Compute Bob's taxable recognized gain. $200,000 / $440,000 = 45.45% ($40,000 + $80,000) * 45.45% = $54,544 C. Compute Bob's basis in the land. $(440,000-120,000) / $440,000 = 72.72% $240,000 * 72.72% = $174.545</span>
5 0
2 years ago
U.S. Bank enters into a new contract with Risk Management Services, Inc. (RMS), to conduct UCC searches. They have never employe
nikitadnepr [17]

Answer:

The court will probably look at the custom usage of trades on similar contracts and provisions.

Explanation:

Usage of trade refers to business practices that are so commonly accepted and carried out that anyone can expect that they are included in the transactions.

3 0
2 years ago
Total quality management (tqm) emphasizes all but which one of the following?a. Team-based work design and the creation of a tot
Sindrei [870]

Answer:

c. Involvement and empowerment of employees at all levels

Explanation:

Total quality management refers to managing the organization in order to develop a success in the long run by considering the low level workers to the high level executive, and at the same time focused on quality improvement and the customer satisfaction

Here are the following points to become important for an organization

1. Quality improvement, management leads to long term success for organization and customers

2. The deficiencies could be determined by performing the work and can be corrected through providing the training, education, etc

3. If the product contains high quality that meet the needs of the customers than it would lead to high customer satifaction

4. And, in case if there is few defective product so the company is in a position to save the cost

5 0
2 years ago
A wireless store owner takes presale orders for a new smartphone and tablet. He gets 320 preorders for the smartphone and 310 or
Masja [62]

Answer:

y = $440

x = $ 580

Explanation:

Given data:

order for smartphone is 320

order doe tablet is 310

sale of all order is $322,000

total combined price for smartphone and tablet is $1020

let cost of one smartphone is x

let cost of one tablet is y

320 x +310 y = 322,000..... 1

x + y = 1020 .....2

solving 1 and 2 we get

y = $440

x = $ 580

5 0
2 years ago
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