Which types of preferences will always result in an interior optimum for utility maximization (assuming income is greater than $0)

Answers

Answer 1

Multiple choice options

Perfect complements

Cobb Douglas

Perfect substitute

Concave IC

Quasi linear

Answer:

Perfect complements

Cobb Douglas

Explanation:

Perfect complements and Cobb Douglas will always result in interior optimum for utility maximization

When we talk of perfect competition, the consumer would always consume both goods and would do so in fixed proportions.

For cobb Douglas, the consumer spends a fixed part of income on the good. The part of income that is spent is dependent on the exponential power of goods it was spent on.

For perfect substitute and concave IC, any of one good is consumed

For quasi linear, first one good is consumed till some unit. After this unit is done with, if anything is left on income, the remaining income will be spent on other good. So at income level, there is corner solution and whereafter there will be interior solution.


Related Questions

Backflush costing is a costing method that: Charges current production costs directly to finished goods inventory. Charges current production cost directly to work-in-process inventory. Charges current production costs using actual costs incurred.

Answers

Answer:

Charges current production cost directly to work-in-process inventory

Explanation:

The blackflush costing is the costing method in which the present cost of production would be charged to the work in process inventory in a direct way

Therefore as per the given situation the second option is correct

ANd, the rest of the options are wrong as it does not meet the criteria

So the second option would be taken into consideration

13. Suppose you are buying your first condo for $440,000, and you will make a $30,000 down payment. You have arranged to finance the remainder with a 30-year, amortized mortgage at a 5.4% interest rate. You will make monthly payments with the first payment due in one month. Assuming that the sellers accept the offer, what will your monthly payments be

Answers

Answer:

monthly payments will  be $2,302

Explanation:

This question requires us to calculate the  monthly payments (PMT) on the mortgage with the following data ;

PV = ($440,000 - $30,000) = $410,000

N = 30 x 12 = 360

P/yr = 12

I = 5.4%

FV = $ 0

PMT = ?

Using a Financial Calculator to input the data as above, the PMT can be determined as $2,302. Therefore, the monthly payments will be $2,302.

Notes

Important to note that we remove the down payment of $30,000 from the principle amount. There is no time value of money effect on this amount.

Also compounding is done monthly thus there are 12 period in the year

g What will be the effect on short-run price, quantity, and profit if a technological development reduces marginal costs in a competitive market

Answers

Answer:

If a technological development reduces marginal costs in a competitive market, the aggregate supply curve of the market, which is the sum of the individual firm's supply curves, will shift to the right, because technological developments reduce production costs, which allows firms to increase output.

Prices will also fall to the point that firms will make exactly zero economic profit, something that will benefit consumers, and that is one of the key characteristics of perfectly competitive markets.

What style of leadership is grounded in the exchange relationship between the leader and the follower

Answers

Answer: Transactional leadership

Explanation:

Transactional leadership a style of leadership that grounded in the exchange relationship between the leader and the follower.

For transactional Leadership, promotion of compliance is done through both rewards and punishment.

Luther Corporation Consolidated Balance Sheet December 31, 2009 and 2008 (in $ millions) Assets 2009 2008 Liabilities and Stockholders' Equity 2009 2008 Current Assets Current Liabilities Cash 63.6 58.5 Accounts payable 87.6 73.5 Accounts receivable 55.5 39.6 Notes payable/ short-term debt 10.5 9.6 Inventories 45.9 42.9 Current maturities of long-term debt 39.9 36.9 Other current assets 6.0 3.0 Other current liabilities 6.0 12.0 Total current assets 171.0 144.0 Total current liabilities 144.0 132.0 Long-Term Assets Long-Term Liabilities Land 66.6 62.1 Long-term debt 239.7 168.9 Buildings 109.5 91.5 Capital lease obligations --- --- Equipment 119.1 99.6 Total Debt 239.7 168.9 Less accumulated depreciation (56.1) (52.5) Deferred taxes 22.8 22.2 Net property, plant, and equipment 239.1 200.7 Other long-term liabilities --- --- Goodwill 60.0 -- Total long-term liabilities 262.5 191.1 Other long-term assets 63.0 42.0 Total liabilities 406.5 323.1 Total long-term assets 362.1 242.7 Stockholders' Equity 126.6 63.6 Total Assets 533.1 386.7 Total liabilities and Stockholders' Equity 533.1 386.7 What is Luther's net working capital in 2008

Answers

Answer:

27.0 million

Explanation:

Net Working Capital is the difference between the company`s short term assets or current assets and its short term obligations or current liabilities

              Net Working Capital = Current Assets - Current Liabilities

where,

For 2008, Luther Corporation

Current Assets = $171.0 million

Current Liabilities = $144.0 million

therefore,

Net Working Capital = $171.0 million - $144.0 million

                                  = 27.0 million

Conclusion :

Luther's net working capital in 2008 is 27.0 million

If the periodic weighted average inventory costing system is used, how should cost of goods available for sale be allocated at the end of the period? Group of answer choices

Answers

Answer:

The cost of goods available for sale is allocated to the cost of goods sold and the ending inventory at the end of the period based on the computation of the weighted average cost per unit.

Explanation:

The allocation of the cost of goods available for sale to the two cost elements must be done at the end of the period.  The first step adds up the costs of beginning inventory to the purchases for the period, and then the total is divided by the units of goods available for sale for the period.  The resulting mathematical operation becomes the weighted average cost per unit, which is then multiplied by the units to obtain the cost of goods sold and the cost of ending inventory.

On January 1, 2018, Legion Company sold $270,000 of 4% ten-year bonds. Interest is payable semiannually on June 30 and December 31. The bonds were sold for $146,125, priced to yield 12%. Legion records interest at the effective rate. Legion should report bond interest expense for the six months ended June 30, 2018, in the amount of

Answers

Answer:

$8,767.50

Explanation:

Calculation for what Legion should report as bond interest expense for the six months ended

Using this formula

Bond interest expense= Carrying Value of Bond x Effective interest rate

Let plug in the formula

Bond interest expense=$146,125 x 12% yield interest x 6 months/12 months

Bond interest expense=$8,767.50

Therefore what Legion should report as bond interest expense for the six months ended is $8,767.50

The 2014 balance sheet of Jordan’s Golf Shop, Inc., showed long-term debt of $2.7 million, and the 2015 balance sheet showed long-term debt of $2.95 million. The 2015 income statement showed an interest expense of $140,000. The 2014 balance sheet showed $460,000 in the common stock account and $3.2 million in the additional paid-in surplus account. The 2015 balance sheet showed $500,000 and $3.5 million in the same two accounts, respectively. The company paid out $500,000 in cash dividends during 2015. Suppose you also know that the firm’s net capital spending for 2015 was $1,320,000, and that the firm reduced its net working capital investment by $59,000. What was the firm’s 2015 operating cash flow, or OCF

Answers

Answer:

$1,311,000

Explanation:

The computation of the operating cash flow is shown below:

As we know that

Operating cash flow = Cash flow from assets + capital spending - change in net working capital

where,

Cashflow from Assets = Cashflow to Creditors + Cashflow to Stakeholders

Cashflow to Creditors = Interest paid - Change in long term debt

=  $140,000 - ($2,950,000 - $2,700,000)

=  -$110,000

Now  

Cashflow to Stakeholders

= Dividends paid - New issuance of the equity

= $500,000 - (($500,000 + $3,500,000) - ($460,000 + $3,200,000))

= $160,000

So,  

Cashflow from Assets is

= -$110,000 + $160,000

= $50,000

Now  

Operating cashflow is

= $50,000 + $1,320,000 + (-$59,000)

= $1,311,000

If a firm experiences learning by doing, what is likely to happen to the long-run average total cost curve

Answers

Answer:

the long-run average total cost curve will fall as time goes by

Explanation:

In this scenario, the long-run average total cost curve will fall as time goes by. That is because the longer the employees work at the firm the more efficient they will become at their job. As efficiency rises so does production output while at the same time decreasing costs because more employees are able to produce more with less material and less time. This, therefore, causes a downward slope on the total cost curve causing a fall.

What is the most likely explanation for a 20.0% return on a stock with a beta of 1.0 in a month when the market returned 10.0%

Answers

Answer:

favorable firm- specific news are reported

Explanation:

The following information is given

Return on the stock is 20%

Beta is 1%

And, the market return is 10%

Based on the above information

All the above represent the positive percentage so this represent that the firm is favorable so for this the particular news would be recorded

hence, the same is relevant

what is the book value of muffin's masonry's assets today and the market value of these assets

Answers

Answer:

13

Explanation:

Write a letter to the current Unites States President, and put forth arguments regarding why you support or are against an increase in minimum wage. In your letter, discuss whether managers should be given a higher minimum wage or be paid overtime. Address what the minimum weekly salary should be for bona fide executives, administrators, or professionals.

Answers

Answer:

Dear U.S. president

As an economist, I personally agree with raising the minimum wage, 7 dollars an hour is very low, and does not reflect gains in worker's productivity.

However, raising it to 15 dollars an hour could be too high, since it would be higher than the minimum wage of the state of California, which is currently 14 dollars an hour, and California is one of the states with the highest cost of living.

For this reason, I propose raising the minimum wage to 10 dollars an hour, a moderate solution. This is a level that reflects workers' productivity better, at the time that protects many sectors of the economy from having to lay off workers due to a hike in labor costs.

Sincerely, random economist.

Yellow Inc. reports year-end credit sales in the amount of $209,000 and accounts receivable of $163,000. The company uses the balance sheet method to report bad debt estimation. The estimation percentage is 2.9%. What is the estimated balance uncollectible using the balance sheet method

Answers

Answer:

The estimated balance uncollectible using the balance sheet method is $4,727.

Explanation:

In the balance sheet method, the Estimated balance uncollectible is calculated using the percentage of the closing accounts receivables. As account receivables are reported in the balance sheet of the company.

In the income statement method, the Estimated balance uncollectible is calculated using the percentage of sales value because the sale is reported in the income statement.

Estimated balance uncollectible = Accounts receivable x estimation percentage

Estimation percentage = 2.9%

Accounts receivable = $163,000

Placing values in the formula

Estimated balance uncollectible = $163,000 x 2.9%

Estimated balance uncollectible = $4,727

When you expect a reader of your message to be uninterested, unwilling, displeased, or hostile, you should a. put the bad news first. b. begin with the main idea. c. explain all background information first. d. send the message via e-mail, text message, or IM.

Answers

Answer:

c. explain all background information first.

Explanation:

In the case when the reader of your message is not interested, non-willing, hostile so you should explain the information first that should be background one so that he or she show some interest on your message and act accordingly

Therefore as per the given scenario the option c is right

And, the rest of the options are incorrect

When outcomes are uncertain, managers need to Group of answer choices describe the risks involved. evaluate the risks involved. manage the risks involved. all of the above.

Answers

Answer:

all of the above

Explanation:

When outcomes are uncertain, a manger must recognise and describe the risks involved. After identifying the risks, the risks must be evaluated to determine the extent of the risk and how the risk would affect the business. After the risks have been evaluated, the risk should be managed. For example, by taking insurance.

For example, if a manager wants to purchase a machine,

the manger has to identify the risks involved : the machine can be stolen, it can injure workers or it might not produce the desired effect

The manger must then evaluate the risks. The risks can be evaluated using capital budgeting methods. e.g. NPV

The manger can manage the risk by taking out insurance

g The difference between a three-digit North American Industry Classification System (NAICS) industry and a six-digit NAICS industry is that:

Answers

Answer:

A 3 digit code by NAICS represents the subsector of the type of business in America while a six digit code represents country level national industries.

Explanation:

The NAICS stands for North American Industry Classification. It is a standard used by the various federal statistical agencies to classify business for collecting, analyzing as well as publishing the statistical data which is related to the business economy of the US.

In the code of NAICS, a three digit industry is considered as a sub-industry of the two digit industry. Each of 3 digit code business are further divided into 4,5 or 6 digit code industries.

The six digit code used by NAICS is given to the national industries. It permits the firms to find the codes of their present customers and also helps them to find the code lists for the similar firms.

Id.k the labels for em :/

Answers

Answer:

Sole property ship- one owner

Partnership-multiple owners.

Explanation:

PLEASE HELP!

Erin borrowed $5,940 at 5.75% for 2 years 3 months. How much did she have to pay back in
total at the end of the 2 years 3 months?

Answers

She have to pay back 6973$

Assume that a hypothetical economy with an MPC of 0.9 is experiencing a severe recession. Instructions: In part a, round your answers to 1 decimal place. Enter your answers as a positive number. In part b, enter your answers as a whole number. a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion

Answers

Answer:

$10 billion

Explanation:

Calculation for By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion

Using this formula

Government multiplier spending=1/1-MPC

Where,

MPC=0.9

Let plug in the formula

Government multiplier spending=1/1-0.9

Government multiplier spending=1/0.1

Government multiplier spending=$10 billion

Therefore how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion will be $10 billion

Using activity-based costing, total overhead per unit of Great P model is (rounded to the nearest cent): $42.61. $45.99. $66.73. $61.32.

Answers

Answer:

$42.61

Explanation:

The computation of the total overhead cost of Great P model is as follows:

Activity                                               Overhead allocated to Great P

Engineering and Design ($40,,712 × 1440 ÷ 2409 ) $241,920

Quality control ($269,808 × 7,200 ÷ $12,848 ) $151,200

Machinery ($539,616 × 13,440 ÷ 33,726 ) $215,040

Miscellaneous overhead ($134,904 × 14,400 ÷ 26,400 ) $73584

Total                                 $681,744

Now the overhead per unit is

= Total Overhead allocated ÷ Annual sales in units

= $681,744 ÷ 16,000    

= $42.61

hence, the first option is correct

(True) or (False)? The gain or loss on the sale of an asset can be calculated as the difference between sale price and accumulated depreciation.

Answers

Answer:

False

Explanation:

Rather, gain or loss on the sale of an asset can be calculated as the difference between sale price and net book value (NBV).

The net book value can be calculated by accumulated depreciation from the purcahse price of the assets.

Therefore, gain or loss on the sale of an asset can be calculated using the following fomula:

Gain (loss) on the sale of an asset = Sales price - Net book value

Why do you think Walmart has had difficulty succeeding in foreign markets, especially in emerging markets like Brazil, India and South Korea

Answers

Answer is given below :

Explanation:

Walmart's struggle in foreign markets such as Brazil and South Korea, Germany, adhering to its principle of success in its home United States, and not knowing how to apply and compete in other cultures and other countries. The witch affected him in many ways. It was shown when Walmart opened its stores in Germany that it tried to apply its principle and its Walmart culture to the US, so they tried to impose Walmart's corporate culture on non - US employees who laughed, but commented that some men would manipulate shoppers for Germans. It was strange that the staff chanted Wal-Mart in the morning because they did not behave like that according to proper German culture. Or, for example, it never established comfortable relations with its German trade unions, and in Germany, they did not understand that companies and unions were closely related. They did not use local management. The company initially set up German authorities to make sure that when the Germans wanted to buy meat from the butcher they tried to sell the packaged meat. In Korea, Wal-Mart stores initially had taller racks than local rivals, forcing shoppers to use ladders or stretchers for items on high shelves. Wal-Mart's expiration closed shopkeepers who used roofs with exposed pipes for decorative ceilings in other stores. Everything from Wal-Mart to the shoe-to-food product line does not conform to the shopping habits of most non-American shoppers. Instead of shopping once a week at Walmart, he prefers to take a daily walk to local stores that specialize in grocery, pharmaceutical or home appliances.

Flounder Corporation owns machinery that cost $26,400 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $3,168 per year, resulting in a balance in accumulated depreciation of $11,088 at December 31, 2020. The machinery is sold on September 1, 2021, for $13,860. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale.

Answers

Answer:

A. Dr Depreciation Expense $2,123

Cr Accumulated Depreciation $2,123

B. Dr Cash $13,860

Dr Accumulated Depreciation$13,211

Cr Machiner$26,400

Cr Gain on Disposal of Machinery$671

Explanation:

Preparation of the journal entries to (a) update depreciation for 2021 and (b) record the sale.

A. Preparation of the journal entries to (a) update depreciation for 2021

Dr Depreciation Expense $2,123

Cr Accumulated Depreciation $2,123

(3185*8/12)

B. Preparation of the journal entries to record the sale

Dr Cash $13,860

Dr Accumulated Depreciation$13,211

($11,088+$2,123)

Cr Machiner$26,400

Cr Gain on Disposal of Machinery$671

[($13,860+$13,211)+$26,400]

Acellus
What is the rate of return when 35 shares of Stock
A, purchased for $20/share, are sold for $815? The
commission on the sale is $6.
Rate of Return = [?] %
Give your answer as a percent rounded to the
nearest tenth
Enter

Answers

Answer:

8.00

Explanation:

Quiznos revolutionized the sub sandwich business by introducing "oven roasted" versions of popular sandwiches through a process where the maker of the sandwich would put the sandwich in a conveyor that transported the sandwich through an oven and then on to an employee that assembled the sandwich with customer choice of toppings. Does Quiznos enjoy a sustainable competitive advantage?

Answers

Answer:

No

Explanation:

No, Quiznos was able to rise in popularity due to their "oven-roasted" sandwich versions which gave them a competitive advantage, but it is not a sustainable one. Other companies will begin to implement the same strategy/design into their franchises which will take that competitive advantage away from Quiznos. At that point, Quiznos will need to implement a new strategy or idea in order to gain another competitive advantage and increase sales.

INCOME STATEMENT Patterson Brothers recently reported an EBITDA of $7.5 million andnet income of $2.1 million. It had $2.0 million of interest expense, and its corporate tax ratewas 30%. What was its charge for depreciation and amortization

Answers

Answer:

$ 1.75 million

Explanation:

EBITDA stands for Earnings  Before Interest, Tax, Depreciation and Amortization. Net Income is Earnings after Interest, Tax, Depreciation and Amortization.

So to find charge for depreciation and amortization we need to reconcile the EBITDA to the Net Income and find the missing figures,

Reconciliation of EBITDA to the Net Income

EBITDA                                                                                $7.5 million

Less Net income                                                               ($2.1 million)

Interest, Tax, Depreciation and Amortization                  $5.4 million

Less Interest expense                                                      ($2.0 million)

Less Corporate tax ($7.5 million - $2.0 million) × 30%  ($1.65 million)

Charge for depreciation and amortization                      $ 1.75 million

When Tyree Elliott was hired as a public relations advisor to the CEO of a Fortune 500 company, he welcomed the help he received from Rae Rogers, a senior manager. Rogers was able to show Elliott the places where trouble was likely to occur, the likes and dislikes of the CEO, and how to do the best job possible. Which of the following statements describes what was going on in this situation?

a. Elliott was given no training at all.
b. Elliott was assuming the role of an apprentice.
c. Rogers was using off-the-job training techniques.
d. Rogers was assuming the role of a mentor.

Answers

Answer:

d. Rogers was assuming the role of a mentor.

Explanation:

Remember, the term mentor is usually assigned to someone who is more experienced, and who provides valuable and trusted advice to someone with lesser experience.

Based on this description, and the fact that we are told that "Rogers was able to show Elliott the places where trouble was likely to occur," makes Roger fit the role of a mentor.

Brenda wants to find the amount of dividend pald to the shareholders by JSL Inc. In which statement will JSL Inc. specifically show the dividends
pald to shareholders?
OA
trial balance
OB. balance sheet
Ос.
Income statement
OD
statement of retained earnings
ОЕ
cash flow statements

Answers

Answer:

statement of retained earnings

Explanation:

Retained earnings are the profits that a business opts not to distribute to shareholders. They are part of the shareholder's equity.  

The statement of retained earnings shows the balance of retained earnings at the end of a period. Retained earnings are increased by profits and decreased by dividends paid. Preparing the statement of retained earnings involves adding net income to beginning retained earnings.

Dividends paid are subtracted from that total.

Therefore, the dividend paid out will feature in the statement of retained earnings.

g At the end of a month, how is over or under applied overhead reported on the financial statements

Answers

Answer:

Hie your question has missing information, i tried to look it up online but i could not find it.

Here below is some explanation on the g part of your question on the treatment of over or under applied overhead on the financial statements.

At the end of the reporting period, the entity compares its actual manufacturing overhead to its applied manufacturing overhead (used in determining product cost)

under- applied or over- applied

If actual manufacturing overhead > applied manufacturing overhead, the overheads are under- applied.

and

If actual manufacturing overhead < applied manufacturing overhead, the overheads are over- applied.

reporting on the financial statements

under- applied are added to the cost of sales in the trading account. this increases the costs of sales amount.

under- applied are deducted from the cost of sales in the trading account. this decrease the costs of sales amount

Alternatively,

under -applied overheads are allocated to inventory balances including cost of sales and added to the total of the  balances as the end of the period.

and

over -applied overheads are allocated to inventory balances including cost of sales and deducted from the total of the balances as the end of the period.

suggest ways to ensure good customer experience

Answers

feed them c a r r o t s
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