2. Suppose Arda's utility for apples (A) and oranges (0) can be represented as U=A+20.- a) Draw the indifference curve that yields a utility level 5.
b) Calculate MUA, MUO, and MRS of A for 0 on that indifference curve.
c) They have $5 per week for apples and oranges. Pa= $1/pound and Po= $2/pound.
How much apples and oranges would they consume a week? Show on the graph.
d) Suppose now Pa= $1/pound and Po= $2.5/pound. Find their optimal consumption
bundle. Show on the graph.

Goals that are overly ambitious can discourage employees and decrease motivation, yet the idea of stretch goals is proposed as a way to get people fired up and motivated. as a manager, how might you decide where to draw the line between a “good” stretch goal and a “bad” one that is unrealistic?

Miller mfg. is analyzing a proposed project. the company expects to sell 8,000 units, plus or minus 2 percent. the expected variable cost per unit is $11 and the expected fixed costs are $287,000. the fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. the depreciation expense is $68,000. the tax rate is 32 percent. the sales price is estimated at $64 a unit, plus or minus 3 percent. what is the earnings before interest and taxes under the base case scenario?

When using various forms of promotion to carry the promotion message, it is important that the recipients of the message interpret it in the same way. creating a unified promotional message, where potential customers perceive the same message, whether it is in a tv commercial, or on a billboard, or in a blog, is called