Microsoft develops, produces, and markets a wide range of computer software, including the Windows operating system. On its rece

Answer:

To maximize utility, the consumption of product Y should be increased while reducing the intake of product X.

Explanation:

The utility-maximizing principle asserts that a consumer optimizes utility when the marginal utility per dollar spent is equal for both products.

For Product X, the marginal utility per dollar is:

= 2 utils per dollar

For Product Y, the marginal utility per dollar is:

= 8 utils per dollar

According to this principle, the consumer should increase the consumption of product Y and decrease that of product X.

Response:

The lowest acceptable price is $960 per unit

Explanation:

According to the available information:

The Engine Division, which is currently functioning at full capacity, has a unit sale price of $2,550 and corresponding variable and fixed costs of $1,050 and $750 per unit, respectively. The Production Division is paying an external supplier $2,400 per unit. Internal sales would result in saving $90 per unit due to reduced selling expenses.

Considering the presence of excess capacity, fixed costs will not factor into our considerations.

Variable cost is calculated as 1,050 - 90= $960

Thus, the minimum price is set at $960

Response:

Greg's profit from the apartment sale = $590,000

Details:

Cost of purchase = $100,000

Renovations = $300,000

Overall Initial Cost = Cost of Purchase + Renovations

Overall Initial Cost = $100,000 + $300,000

Overall Initial Cost = $400,000

Depreciation over 20 Years = Yearly Depreciation * 20

= $2,500 * 20

= $50,000

Net Value after 20 Years = Initial Cost - Depreciation over 20 Years

= $400,000 - $50,000

= $350,000

Capital Gain = Net Sale Price - Net Value

When Net Sale Price = Selling Price - Commission

= $1,000,000 - $60,000

= $940,000

Thus, Capital Gain = Net Sale Price - Net Value

Capital Gain = $940,000 - $350,000

Capital Gain = $590,000