Ray buys only hamburgers and bottles of root beer out of a weekly income of $100. he currently consumes 20 bottles of root beer per week, and his marginal utility of root beer is 6. the price of root beer is $2 per bottle. currently, he also consumes 15 hamburgers per week, and his marginal utility of a hamburger is 8. is ray max- imizing utility at his current consumption basket? if not, should he buy more hamburgers each week, or fewer?

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan