This topic contains a solution. Click here to go to the answer

Author Question: Kendrick wants to start a tax preparation company and is going to his bank to borrow 50,000. This is ... (Read 83 times)

Awilson837

  • Hero Member
  • *****
  • Posts: 509
Kendrick wants to start a tax preparation company and is going to his bank to borrow 50,000. This is an example of
 
  A) a primary market transaction. B) indirect finance.
  C) a secondary market transaction. D) direct finance.

Question 2

Newspaper machines and soda vending machines operate very differently. The newspaper machine is a mechanical box. You place your four quarters in the machine and you open the door and low and behold there is a stack of newspapers at your disposal.
 
  Most people take one and close the door for the next patron to purchase his own copy. But notice that soda vending machines don't operate the same way. They are also mechanical but when the four quarters are inserted and a selection is made only one can of soda is available for the consumer to purchase. Explain in terms of marginal utility why these two machines are designed so differently?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

nital

  • Sr. Member
  • ****
  • Posts: 320
Answer to Question 1

B

Answer to Question 2

The marginal utility of a second newspaper is most likely to be zero for most people. That is, the extra added satisfaction of acquiring a second newspaper is probably negligible. After all, it contains all of the same news as the first copy. However, the cans of cold beverage that remain in the soda machine still have positive marginal utility even though it may be less than the marginal utility of the first can. It pays for the vendor to design a machine that keeps the rest of the cans of soda away from those who might not be inclined to pay for the second can of soda.




Awilson837

  • Member
  • Posts: 509
Reply 2 on: Jun 29, 2018
Excellent


cpetit11

  • Member
  • Posts: 321
Reply 3 on: Yesterday
Gracias!

 

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

For a complete list of videos, visit our video library