Business, 28.05.2020 18:02 therealpr1metime45

Bob lives in San Diego and loves to eat desserts. He spends his entire weekly allowance on yogurt and pie. A bowl of yogurt is priced at $1.25, and a piece of pecan pie is priced at $3.75. At his current consumption point, Bob's marginal rate of substitution (MRS) of yogurt for pie is 2. This means that Bob is willing to trade two bowls of yogurt per week for one piece of pie per week.

Does Bob's current bundle maximize his utility—in other words, make him as well off as possible? If not, how should he change it to maximize his utility?

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 12:30, dtrdtrdtrdtrdrt1325

Suppose a holiday inn hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented. it operates 365 days per year. the amount of operating income on rooms, assuming an occupancy* rate of 80% for the year, that will be generated for the entire year is *occupancy = % of rooms rented

Answers: 1

continue

Business, 22.06.2019 15:20, iselloutt4fun

Kelso electric is debating between a leveraged and an unleveraged capital structure. the all equity capital structure would consist of 40,000 shares of stock. the debt and equity option would consist of 25,000 shares of stock plus $280,000 of debt with an interest rate of 7 percent. what is the break-even level of earnings before interest and taxes between these two options?

Answers: 2

continue

Business, 22.06.2019 16:50, kaywendel2008

Atrough in the business cycle occurs when

Answers: 1

continue

Business, 22.06.2019 20:20, tytybruce2

Carmen’s beauty salon has estimated monthly financing requirements for the next six months as follows: january $ 9,000 april $ 9,000 february 3,000 may 10,000 march 4,000 june 5,000 short-term financing will be utilized for the next six months. projected annual interest rates are: january 9 % april 16 % february 10 may 12 march 13 june 12 what long-term interest rate would represent a break-even point between using short-term financing and long-term financing?

Answers: 3

continue

You know the right answer?

Bob lives in San Diego and loves to eat desserts. He spends his entire weekly allowance on yogurt an...