Business, 04.09.2021 01:10 whitakers87

Bill regularly buys lattes and reading magazines. He has budgeted a certain amount of his income to these two goods and is spending that entire amount on the goods. Lattes cost $5.00 per cup and magazines are $3.00 each. His marginal utility from his last latte was 320 utils and his marginal utility from the last magazine he read was 280 utils. a. Is Bill currently consuming in such a way as to maximizes his total utility given hisbudget? Why or why not?
b. If Bill is not in a position of consumer equilibrium, how should he change his consumption of lattes and magazines to bring about equilibrium?

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 15:00

The media specialist suggests a library reading program that will correlate highly with the teaching program and reward the students as they read. the rewards will be provided by the business community. a pencil carrier will be the reward for having read 25 books, a baseball cap the reward for having read 30 books, a tee shirt for 50 books, and a backpack for having read 100 books. the media specialist's suggestion is based on her knowledge that:

Answers: 1

Answer

Business, 21.06.2019 20:20

After all revenue and expense accounts have been closed at the end of the fiscal year, income summary has a debit of $2,450,000 and a credit of $3,000,000. at the same date, retained earnings has a credit balance of $8,222,600, and dividends has a balance of $125,000. required: a. journalize the entries required to complete the closing of the accounts on december 31. refer to the chart of accounts for exact wording of account titles. b. determine the amount of retained earnings at the end of the period.

Answers: 1

Answer

Business, 21.06.2019 21:50

The next dividend payment by savitz, inc., will be $2.08 per share. the dividends are anticipated to maintain a growth rate of 6 percent forever. if the stock currently sells for $42 per share, what is the required return?

Answers: 2

Answer

Business, 21.06.2019 22:30

What two elements normally must exist before a person can be held liable for a crime

Answers: 1

Answer

You know the right answer?

Bill regularly buys lattes and reading magazines. He has budgeted a certain amount of his income to...

Questions