What is W A 0B 20 C 40 What is WA 0 B 10 C 40D None of the above What is X A 15

What is w a 0b 20 c 40 what is wa 0 b 10 c 40d none

This preview shows page 35 - 45 out of 51 pages.

What is “W”? A. 0B. 20C. 40
What is “W”?
What is “X”?
What is “Y”?
What is “Z”? A. 0B. 5C. 20D. 40E. None of the above
Buy (A) 1 apple/ 2 oranges (B) 3 apples/ 1 orange (C) 5 apples The Utility Maximizing Combination of Apples and Oranges Obtainable with an Income of \$ 5 (2) Apple (Product A): Price = \$1 (3) Oranges (Product B): Price = \$2 (1) Unit of Product (a) Marginal Utility, Utils (b) Marginal Utility per dollar (MU/Price) (a) Marginal Utility, Utils (b) Marginal Utility per dollar (MU/Price) First 10 10 24 12 Second 8 8 20 10 Third 7 7 18 9 Fourth 6 6 16 8 Fifth 5 5 12 6 Sixth 4 4 6 3 Seventh 3 3 4 2
Answer The Utility Maximizing Combination of Apples and Oranges Obtainable with an Income of \$5 (2) Apple (Product A): Price = \$1 (3) Oranges (Product B): Price = \$2 (1) Unit of Product (a) Marginal Utility, Utils (b) Marginal Utility per dollar (MU/Price) (a) Marginal Utility, Utils (b) Marginal Utility per dollar (MU/Price) First 10 10 24 12 Second 8 8 20 10 Third 7 7 18 9 Fourth 6 6 16 8 Fifth 5 5 12 6 Sixth 4 4 6 3 Seventh 3 3 4 2
Fiona wants to sell a local advertising calendar. She knows there are 1000 households in her community, and estimates 30 percent households will buy 1 calendar each. The printing company will charge a \$100 set up fee and calendars will cost \$4.00 each to print. What minimum price will she need to charge to cover all costs and make a \$500 profit?
John's Manufacturing makes recliners. They plan to sell all styles of their recliners at a price of \$190.00. They estimate their variable costs to be \$200.00 per recliner. They figure their fixed costs to be \$50,000 - \$75,000 per year. How many recliners per year do they have to sell to at least breakeven?

You've reached the end of your free preview.

Want to read all 51 pages?

• Spring '10
• Ashwani
• Marketing, Diamond