If bananas are on the x-axis and apples are on the y-axis, then the marginal rate of substitution is:. 1. MUa/MUb
2. MUb/MUa
3. the absolute value of the slope of the indifference curve that goes through the current consumption bundle.
4. the number of apples the consumer is willing to give up to get an additional banana.
5. the number of bananas the consumer is willing to give up to get an additional apple.

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.

To travelers know what to expect researchers collect the prices of commodities

Here are the expected cash flows for three projects: cash flows (dollars) project year: 0 1 2 3 4 a − 6,100 + 1,275 + 1,275 + 3,550 0 b − 2,100 0 + 2,100 + 2,550 + 3,550 c − 6,100 + 1,275 + 1,275 + 3,550 + 5,550 a. what is the payback period on each of the projects? b. if you use a cutoff period of 2 years, which projects would you accept?