Fixed costs are expenses that remain the same overall regardless of how much activity is being performed.
Explain about the fixed costs?
Fixed costs are expenses that remain constant regardless of whether sales or production volumes rise or fall. This is so because they are not involved in the actual process of producing a good or providing a service. Fixed costs are therefore regarded as indirect costs.
Some examples of fixed costs include rent and leasing fees, salaries, energy bills, insurance, and loan repayments. Some taxes, like business licences, are also recurring expenses.
Variable costs, as opposed to fixed costs, are directly tied to the price of producing goods or services. While fixed costs are frequently excluded from COGS, variable costs are frequently referred to as the cost of goods sold (COGS).
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A store buys 7 sweaters for $77 and sells them for $196. How much profit does the store make per sweater?.
The profit made per sweater is $17
Total numbers of sweaters bought = 7
The cost price for seven sweaters = $77
The selling price of seven sweaters = $196.
Gain or profit is attained by raising the price of goods so that consumer spending exceeds producer expenses and a sizable return on investment is left. Profit is the money that remains after expenditures and expenses have been paid.
Calculating the amount the store bought the sweaters for -
196- 77
= 119
Profit the store made per sweater -
= Total amount/ Number of sweaters
= 119/7
= 17
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How do employers figure out how much federal income tax to withhold from your paycheck?.
When calculating the amount of federal income taxes that should be withheld from an employee's salary or compensation, employers consult the employee's Form W-4 and the IRS's income tax withholding table.
How can I fill out a Form W4 to declare my exemption?You must submit a W-4 Form to seek exempt status. Lines 5 and 6 should not be finished. Line 7 should read "Exempt." For your continued exemption, please note that you must file a fresh W-4 Form by February 15 of each year.The information on the Form W-4 is provided to you, the employer, and includes information about the employee's filing status, multiple job adjustments, credits, other income, deductions, and any additional amounts to be withheld from each paycheck in order to determine how much federal income tax should be withheld and withheld from the employee's pay.When calculating the amount of federal income taxes that should be withheld from an employee's salary or compensation, employers consult the employee's Form W-4 and the IRS's income tax withholding table.To learn more about Form W-4 refer to:
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suppose the federal reserve increases the amount of reserves by $100 million and the total money supply increases by $600 million. instructions: enter your answers as a whole number. a. what is the money multiplier? b. using the money multiplier from part a, how much will the money supply change if the federal reserve increases reserves by $60 million? $ million
If the federal reserve increases the amount of reserves by $100 million and the total money supply increases by $600 million a) the money multiplier is 6 and b) using the money multiplier from part a, the money supply change if the federal reserve increases reserves by $60 million is $360 million.
The money multiplier refers to generation of money in the economy in the form of credit creation. It indicates the increase in the money supply and is represented by 1/r where r is the reserve ratio. The reserve ratio, also known as cash reserve ratio, refers to the part of reservable liabilities that commercial banks must hold onto, and not lend out or invest. The requirement is determined by the central bank - United States is the Federal Reserve. It is calculated by dividing the cash reserve requirement by total bank deposits.
a) The reserve ratio from the given information is:
r = 100/600 = 1/6
Hence, the money multiplier is 1/r = 6
b) Considering the money multiplier from part a, the money supply change if the federal reserve increases reserved by $60 million would be 6*60 = 360.
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When there is decreased blood supply to the coronary arteries, which tissue of the heart is affected first?.
Narrowed arteries can cause chest pain because they can block blood flow to your heart muscle and the rest of your body. Over time, CAD can weaken the heart muscle.
An artery (plural arteries) is a blood vessel in human beings and most different animals that take blood far from the heart to 1 or more parts of the frame (tissues, lungs, mind etc.). Maximum arteries bring oxygenated blood; the 2 exceptions are the pulmonary and the umbilical arteries, which carry deoxygenated blood to the organs that oxygenate it (lungs and placenta, respectively). The effective arterial blood quantity is that extracellular fluid that fills the arterial gadget. The arteries are part of the circulatory machine, that's liable for the transport of oxygen and nutrients to all cells, as well as the elimination of carbon dioxide and waste products, the renovation of the choicest blood pH, and the stream of proteins and cells of the immune machine.
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The net present value method assumes that the cash inflows from a project are immediately reinvested at the?.
The net present value method assumes that the cash inflows from a project are immediately reinvested at a rate of return equal to the internal rate of return.
What is net present value?Net Present Value (NPV)The difference between the present value of cash inflows and outflows over time, or net present value (NPV), is what we refer to as this. The profitability of an anticipated investment or project is examined using NPV in capital budgeting and investment planning.The present value of each cash flow that will occur over the project's lifetime is used to compute NPV. The initial investment is then deducted from the present value of the future cash flows. The project will be profitable if the difference is positive (higher than zero).
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Match the term with the correct definition.
Democracy:
Aristocracy:
Oligarchy:
Kleptocracy:
Gynecocracy:
Autocracy:
A state where politicians and government employees steal a significant amount of the wealth of the nation because corruption has become so institutionalized.
government signifies "rule by the trivial few" 2.Based on their military might, family power, or religious authority, very few people hold all power.3.It is not uncommon for oligarchies to originate from or lead to other types of government, such as monarchies and dictatorships.
How does direct democracy work?
Direct majority rules system, in some cases called "unadulterated majority rules system," is a type of a vote based system in which all regulations and strategies forced by still up in the air by individuals themselves, as opposed to by delegates who are chosen by individuals.
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tim began purchasing blt, inc., mutual fund shares several years ago. he has followed a dollar-cost averaging approach by investing $1,000 each year for five years. the following data depicts tim's purchases: year investment share price 1 $1,000 $120 2 $1,000 $100 3 $1,000 $118 4 $1,000 $97 5 $1,000 $130 what is tim's average cost per share? a) $118.23 b) $111.58 c) $106.32 d) $126.10
Tim has invested $1,000 each year for five years. His average cost per share is $111.58
Tim's investment can be depicted in the following table:
Year Investment Share price Number of share
1 $1000 $120 1000/120 = 8.33
2 $1000 $100 1000/100 = 10
3 $1000 $118 1000/120 = 8.47
4 $1000 $97 1000/120 = 10.31
5 $1000 $130 1000/120 = 7.69
In the above table. the number of shares is calculated as:
Number of share = investment / share price
Total number of shares within 5 years:
Total number of shares = 8.33 + 10 + 8.47 + 10.31 + 7.69 = 44.81
Average cost per share = total investment / total number of shares
= 5000/44.81 = 111.58
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by supporting drivers with benefits such as mobile repair and a no-fee bank account with grocery and gas discounts, lyft is .
Lyft will be the outcome of employing the customer contact service feature by providing perks to drivers such as mobile repair and no-fee bank accounts with savings on groceries and gas.
Customer contact is the process of answering a customer's questions before, during, and after a product or service purchase. It is the procedure of addressing clients' problems and offering them a suitable answer created with top-notch call center services.
Consumer service is demonstrated, for instance, when a customer receives a product that doesn't fit. In order for the client to return the item or exchange it for a different size, you would need to make it possible for them to get in touch with you.
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in 2022, elaine paid $2,120 of tuition and $1,300 for books for her dependent son to attend state university this past fall as a freshman. elaine files a joint return with her husband. what is the maximum american opportunity tax credit that elaine can claim for the tuition payment and books in each of the following alternative situations? note: leave no answer blank. enter zero if applicable. required: elaine's agi is $104,250. elaine's agi is $173,500. note: round your intermediate calculations to the nearest whole dollar amount. elaine's agi is $224,500.
Answer:
2120+1300=3420-2000=1420
2000+(1420*.25)=2355
Explanation:
As an employee, which form do you complete in order to file your taxes, annually?.
W-2 tax form must be completed in order to file your taxes, annually.
What is W-2 tax form?Employers must use Form W-2 to provide employee wage and salary information to the IRS. Important information about the amount of federal, state, and other taxes withheld from your paycheck is also included on your W-2.In addition to information about additional employer benefits like health insurance, adoption and dependent care assistance, contributions to health savings accounts, and more. When filing your tax return, the data on your W-2 as an employee is crucial.Generally speaking, if you worked as an employee in a certain year, your employer should send you a W-2 close to the start of the next year.To learn more about W-2 tax form, refer to
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the total gains from trade (for all the consumers of a good and all the producers of the good) are maximized when the market is in a situation called...
When the market is at a state known as equilibrium, the overall gains from trade (for all of the consumers of a commodity and all of the producers of a good) are maximized.
When a market reaches equilibrium, what does that mean?At the price where quantities demanded and supplied are equal, equilibrium is reached. By displaying the total price and quantity at which the supply and demand curves intersect, we may visualize a market in equilibrium.
Does a market have a consumer surplus when it is in equilibrium?Consumer surplus is the region (often a triangular region) above the equilibrium price of the good and below the demand curve on a supply and demand diagram. The market equilibrium is the point at which a price stabilizes, ensuring that both consumers and producers get the maximum surplus in an economy.
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based on the histogram, which of the following could be the interquartile range of the prices? responses $40 $40 $21 $21 $10 $10 $5 $5 $3
The price of the last meal you purchased is $5
The amount of money that one party pays another in exchange for products or services (which is typically not negative) is called the price. The cost of production can go by several names in particular circumstances. The cost of the item will probably be referred to as its "price" if it is a "good" in the context of a commercial exchange. Other names for this product's name will be viable if the thing is a "service," though. One scenario is depicted in the graph at the bottom. Production expenses, the amount of the desired thing that is available, and consumer demand all have an impact on a good's price. A monopolist might set the price or the market might impose it on the company.
Correct question:
The histogram summarizes the responses of 100 people when asked," What was the price of the last meal you purchased?"
Based on the histogram, which of the following could be the interquartile range of the prices?
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c. wright mills identified the major decision-makers at the highest levels of corporations, politics, and the armed forces in the u.s. as the .
The power elite in the United States was described by Wright Mills as the key decision-makers at the highest levels of corporations, politics, and the armed forces.
The elite hold the important leadership posts within the bureaucracies that now rule modern society, where the actual centres of power are now. As a result, rather than stemming from individuals, their power is based on authority, a quality of social structures.
He contends that it is not a group of evil men conspiring against society, but rather a social structure that has increased and centralised power and given it to men with similar social backgrounds and worldviews.
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men earn more than women and that white workers earn more than nonwhite workers, even accounting for differences in education, skills, years on the job, and productivity. true or false
Even after taking into account disparities in education, abilities, years on the job, and productivity, it is still true that men earn more than women do, and that white people make more money than non-white people.
What is the primary cause of the gender gap in median earnings?Women in female-dominated occupations have inferior status and remuneration as a result of occupational segregation.
Which of the following is a major contributing factor to the income gap between races?Healthcare cost differences are one of the main causes of inequality between white and black families' financial portfolios in the US.
What contributes most to the gender pay gap?This is so because women typically hold positions that are distinct from those held by men. How to compare these jobs within the company as well as across different economic sectors and industries is where the issue lies.
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the is where the borrower finds details about how, when, and by how much the interest rate will change in an adjustable rate mortgage (arm).
The mortgage note is where the borrower finds details about how, when, and by how much the interest rate will change in an adjustable-rate mortgage (arm).
A mortgage may be a sort of contract. What makes it uncommon is that it’s a loan secured by real estate. A mortgage note is a document that you just sign at the conclusion of your home closing. It ought to precisely reflect all the terms of the agreement between the borrower and the lender or be redressed quickly in case it doesn’t. When you apply for a mortgage, both you and the house you want to purchase must go through the underwriting handle. Your prospective moneylender will consider whether you’re creditworthy and whether the domestic you’d like to buy has esteem adequate to secure the loan ought you default. A mortgage note gives a depiction of the mortgage. It’s the record that states how you’ll repay your advance, and it uses your domestic as collateral. Because a mortgage note could be a security instrument, it can be bought and sold on the secondary contract market. Because lending institutions offer contract notes, real estate investors actually claim a sold property.
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contrast and understand the following terms: a. critical path scheduling, gantt, network diagramming slack time. b. project, project management, project manager. c. project initiation, planning, execution, closedown. d. project workbook, resources, work breakdown structure.
Critical direction scheduling- is a scheduling method whose order and length of a series of challenge sports immediately have an effect on the of of entirety date of a venture.
The required details for Critical direction scheduling in given paragraph
Gantt- is a specific, graphical method for representing tasks, displaying every challenge hobby as a horizontal bar whose duration is proportional to its time for of of entirety.
Network diagramming- is a specific, graphical method for representing tasks through depicting venture sports and their interrelationships.
Slack time- is the quantity of time that a unmarried hobby may be behind schedule with out delaying the of of entirety date of the venture
Project- is a deliberate mission of associated sports to attain an objective.
Project management- is a managed system for initiating, planning, executing, and ultimate down a venture.
Project manager- is the man or woman chargeable for coping with the sports concerned in finishing a venture.
Project initiation- consists of the ones sports that determine the size, scope, and complexity of the venture and establishes techniques to aid later venture sports.
Project planning- defines clear, discrete sports and the paintings wished to finish every hobby inside a unmarried venture.
Project execution- places the plans created in earlier stages into action. Project closedown- brings a venture to an end.
Project workbook- is a repository for all venture documentation.
Resources- Any person, institution of people, piece of equipment, or fabric utilized in conducting an hobby are resources.
Work breakdown shape- refers back to the system of dividing the venture into achievable duties and logically ordering those duties to make certain a clean evolution among duties. While growing a piece breakdown shape venture managers want to be prudent with their resources. In addition, the paintings breakdown shape is garage within side the venture workbook.
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if a new poverty measure were calculated to include wealth (total debts subtracted from total assets), that new poverty measure would reflect the fact that
If a new poverty measure were calculated to include wealth (total debts subtracted from total assets), that new poverty measure would reflect the fact that since the definition of poverty includes both wealth and income, it has taken on a two-dimensional form, meaning that different people with the same level of wealth may have different poverty levels. Similar to this, individuals with the same income level may have various levels of poverty.
Access to clean water, food, shelter, and clothing are examples of basic needs that can be used to gauge one's level of poverty. It has been proven that people can earn enough money to cover their basic needs but still spend it poorly.
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suppose a good has a downward-sloping, straight-line demand curve. if the price elasticity of demand is 2.5 when the price is $10 per unit, then the price elasticity of demand when the price is $7 per unit could be?
The the price elasticity of demand when the price is $7 per unit could be 1.7.
What is price elasticity?The relationship between the percentage change in a product's quantity demanded and the percentage change in price is known as price elasticity of demand. It helps economists comprehend how supply and demand shift in response to changes in a product's price.
Demand Price Elasticity = % Change in Demanded Quantity / % Change in Price For instance, the price elasticity of demand would be 1.5 if the quantity sought for a product increased 15% in response to a 10% price decrease.
By dividing the percentage change in quantity required by the percentage change in price, the price elasticity of demand is determined. Demand is regarded as elastic if the quotient is larger than or equal to one. Demand is regarded as being inelastic if the value is less than one.
The four variables that influence price elasticity of demand are:
the presence of alternatives, whether the commodity is a luxury or a necessity, the percentage of money spent on the good, and the length of time since the price change. The good is normal if income elasticity is positive.Learn more about price elasticity, here
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pacific tourism is an agency that offers special holiday packages in the pacific region. every year, as an incentive, the most efficient and effective manager in the network gets an all-expenses-paid trip to one of oceania's islands. which manager is most likely to meet these requirements?
Kato, who chooses the right goals to pursue and makes clever use of resources toachieve them
What is the aim of the South Pacific Tourism Organisation?The SPTO wants to advance regional collaboration, sustainable development, global awareness of the region, resource augmentation, and promotion of regional diversity in culture through tourism.
The SPTO, which has 200 members from the business sector and 21 members from the government, is the designated organization responsible for representing tourism in the area.
Its responsibility is to encourage, facilitate, carry out, coordinate, advise, and collaborate on tourism-related activities that support the growth of the industry sustainably in the Pacific.
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Which type of market structure is characterized by the smallest number of firms?.
A small number of companies compete in an oligopoly market and are aware of how their pricing and production strategies are interdependent.
Please give an illustration of oligopoly.A form of imperfect competition known as oligopoly is characterized by competition between a limited number of parties. A market is said to be in an oligopoly if there are two to 10 vendors selling comparable or different goods. The cold beverage sector is a perfect example of an oligopoly.
Characteristics of oligopolyAn oligopoly is characterized by high entry barriers, the ability to set prices, firm interdependence, maximized revenues, product differentiation, and non-price competition.
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a store manager obtained a loan of $25,000, at interest, for 15 months to purchase supplies. find the amount of simple interest. (round to the nearest cent)
Here the simple interest amounts to 2,390,625.
Loan amount, P = $25,000
Interest rate, R = 6 3/8
Time, T = 15
Simple interest, I =?
Simple interest is a quick and simple formula for figuring out how much interest will be charged on a loan. The daily interest rate, the principle, and the number of days between payments are multiplied to calculate simple interest.
Simple interest is calculated based on a loan's principal or the initial deposit into a savings account. Simple interest doesn't compound, therefore a creditor will only charge interest on the principal sum, and a borrower will never be required to pay further interest on the interest that has already accrued.
I = P × R × T
I = $25,000 × 6 3/8 × 15
I = 2,390,625
Complete question:
A store manager obtained a loan of $25,000 at 6 3/8% interest, for 15 months to purchase supplies. find the amount of simple interest.
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stella corp. has the following liabilities: $30,000 salaries payable, $70,000 accounts payable, $180,000 notes payable (to be made in 10 equal annual payments), and warranty payable $22,000 (all of stella's products come with a 90-day manufacturer warranty). the total current liabilities is:
Stella corp. has the following liabilities: $30,000 in salaries payable, $70,000 in accounts payable, $180,000 in notes payable, and a warranty payable of $22,000. the total current liabilities are $140,000.
Liabilities are the debts that a business owes to third-party creditors. Notes outstanding and bank debt could be part of accounts outstanding. Businesses take on debt to grow briskly. The balance between a company's debts and its means makes it stable. In fiscal account, a liability is defined as the unborn offerings of profitable benefits that the reality is obliged to make to other realities as a result of once deals or other once events Your balance distance is divided into two corridors, means, and arrears. means are the coffers your company owns, while arrears are what your company owes.
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juan frequently identifies new and challenging opportunities for his subordinates. he can be described as practicing this style of leadership:
Juan frequently encounters new and challenging opportunities for his subordinates. He is practicing a 'transformational' leadership style.
The transformational leadership style is defined as a management approach that aspires and encourages employees to innovate and develop new ways to improve and grow the paths to the future success of a company. Using a transformational leadership style, executives give trusted employees the authority to make decisions and support new approaches for problem-solving.
The ideal form of the transformational style of leadership is that it creates positive and valuable changes and opportunities in the working environment of the company with the end goal of achieving great success for the business.
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Need some help on this one
Which of the following ratios is net income divided by revenues?
asset turnover ratio
profit margin
return on assets
return on equity
The following ratio is net income divided by revenues. return on assets Thus option (C) is correct
What is income?Income is the consumption and saving opportunity gained by an entity within a specified timeframe, which is mainly shown in the medium of exchange terms. Income is difficult to define conceptually, and the explanation may be different across pieces of ground For example, a person's income in an economic sense may be different from their income as defined by law.
To determine the return on assets ratio, divide net income by the average total assets. The product of the profit margin and the total asset turnover can also be used to express this ratio. The return on total assets can be calculated using either formula.
Therefore, Thus option (C) is correct
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assume that the reserve requirement for demand deposits is 20 percent, that banks hold no excess reserves, and that the public holds no currency. if the banking system has limited reserves and the central bank sells $10,000 worth of government securities to commercial banks, the total money supply will?
Assume that the reserve requirement for demand deposits is 20 percent, that banks hold no excess reserves, and that the public holds no currency. If the banking system has limited reserves and the central bank sells $10,000 worth of government securities to commercial banks, the total money supply will decrease by $50,000.
A demand deposit account (DDA) is a bank account that allows unannounced withdrawals of deposited monies at any time. DDA accounts have the option, but not the obligation, to pay interest on the deposited monies. Savings and checking accounts are typical DDA types.
Demand deposit accounts (DDAs) permit money to be taken out of the financial institution at any time.
Demand deposits give money for purchases and daily expenses.
Demand deposit accounts offer little to no interest in exchange for the funds' accessibility.
Joint owners are permitted for demand deposit accounts.
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the assumptions of the production order quantity model are met in a situation where annual demand is 3,650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. what is the production order quantity for this problem? (find nearest value) 3pts.
The production order quantity will be equal to 184.
The production order quantity may be defined as the amount of any product that retailer orders or purchases in order to balance his inventory cost. This helps the retailer to maintain the inventory in a more efficient manner. This can be explained with the help of Economic Production Quantity Model whish is a modified version of the Economic Order Quantity Model. The formula of production order quantity may be expressed as
POQ = [2KD/h(1 - x)]^(1/2)
where K is Setup cost, D is Annual demand, h is holding cost and x is daily demand rate per daily production rate.
POQ = [2×50×3650/12(1 - 0.1)]^(1/2)
POQ = [365000/10.8]^(1/2)
POQ = 183.3
If we round off the value it will be nearest to 184.
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if your goal was to connect individual customers' behavior across different interactions on different platforms and devices, which analytics feature allows you to do that by associating your own identifiers with individual customers?
Based on Góogle Analytics Certification, the analytics feature allows you to connect individual customers' behavior across different interactions on different platforms and devices is User-ID
What is a User-IDUser ID is a term that is used to describe a User Identifier, usually a specific value and easily known by the operating systems to identify a user.
User identifier or User ID is known along with the group identifier and other access control criteria and is utilized to specify which system resources a user can access.
With góogle analytics certification, the User-ID allows system analysts to connect individual customers' behavior across different interactions on different platforms and devices,
Hence, in this case, it is concluded that the correct answer is the User-ID
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publicly-traded firms have a unique responsibility involving the economic dimension of corporate social responsibility because .
They must respond to shareholders that have invested in the firm hoping to make a profit.
What is a shareholder?Anyone who holds at least one share of a company's stock or unit in a mutual fund is referred to as a shareholder. The firm is primarily owned by its shareholders, who also have specific rights and obligations. With this ownership structure, they can benefit from a company's success. These benefits take the shape of rising stock prices or dividend payments from financial gains.In contrast, when a corporation experiences a loss, the share price inevitably falls, which may result in financial losses for shareholders or portfolio reductions.Any individual, business, or organization that has stock in a corporation is a shareholder.A shareholder of a firm may own just one share.As residual claimants on a company's profits, shareholders may be subject to capital gains (or losses) and/or dividend payments.Additionally, shareholders have specific rights, such as the ability to approve the board of directors at shareholder meetings, dividend payments, and mergers.Investors may lose their entire investment in the event of bankruptcy.To learn more about shareholders, refer to
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They must respond to shareholders that have invested in the firm hoping to make a profit.
What is a shareholder?Anyone who holds at least one share of a company's stock or unit in a mutual fund is referred to as a shareholder.The firm is primarily owned by its shareholders, who also have specific rights and obligations.With this ownership structure, they can benefit from a company's success.These benefits take the shape of rising stock prices or dividend payments from financial gains.In contrast, when a corporation experiences a loss, the share price inevitably falls, which may result in financial losses for shareholders or portfolio reductions.Any individual, business, or organization that has stock in a corporation is a shareholder.A shareholder of a firm may own just one share.As residual claimants on a company's profits, shareholders may be subject to capital gains (or losses) and/or dividend payments.Additionally, shareholders have specific rights, such as the ability to approve the board of directors at shareholder meetings, dividend payments, and mergers.Investors may lose their entire investment in the event of bankruptcy.To learn more about shareholders, refer to
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suppose that the economy is at equilibrium at $1,500 billion, and potential output is $1,200 billion. if the marginal propensity to consume (mpc) is 0.9, then government spending must decrease by $__________ billion to reach potential output.
Then government spending must decrease by $ 20 billion to reach potential output.
What is Equilibrium ?Following is a calculation of the rise in government spending:
Potential = equilibrium point - potential output ÷ (Multiplier) \\
= (1,200 - 1,000 ) ÷ 10\\
= 200 ÷ 10\\
= $20
The multiplier is determined as follows:
[tex]= (1) ÷ (1 - MPC) (1 - MPC)= (1) ÷ (1 - 0.9) (1 - 0.9)= 1 ÷ 0.1= 10[/tex]
We simply calculate the increase in government spending after applying the multiplier calculation.
When market supply and demand are in balance, prices become steady. This is known as equilibrium. In general, a surplus of goods or services leads to lower prices, which increases demand, whereas a shortfall or undersupply raises prices, which decreases demand.
A market is said to have reached equilibrium price when the supply of goods matches demand.
A market in equilibrium demonstrates three characteristics:
the behavior of agents is consistent, there are no incentives for agents to change behavior, and a dynamic process governs equilibrium outcomes.
There are several types of equilibrium used in economics.
Disequilibrium is the opposite of equilibrium and it is characterized by changes in conditions that affect market equilibrium.
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given the information provided, how should sam allocate his income between milk and cereal to arrive at the optimal consumption bundle?
Sam allocates his income between milk and cereal based on their equal marginal utility prices.
What is marginal utility?The pleasure a consumer experiences from each additional unit of consumption is known as marginal utility. It determines the utility after the initial product is consumed. The marginal utility is the benefit you receive from buying a second bottle of water after first purchasing one.The marginal utility-price ratio shows how satisfied you were with your recent purchase, measured in dollars. By equal the marginal utility-price ratio for each commodity bought and consumed, a customer maximizes utility. A good or service's marginal utility quantifies how much consumers enjoy or are satisfied after increasing or decreasing their use by one unit.
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