Answer:
C. $500
Explanation:
According to neoclassical economic theory, the factors of production are paid their marginal product. This payment is called the factor price.
In this case, labor is the factor of production, and the factor price is the wage, therefore, the wage is equal to the marginal product.
If the 10th worker has a marginal product of 10 units of output, and each unit of output is worth $50, then, his wage is:
10 x $50 = $500
Answer:
20.1%
Explanation:
The computation of the simple rate of return is shown below;
= (operating cost - depreciation) ÷ (purchase of new machine - scrap value)
= ($145,500 - $50,500) ÷ ($505,000 - $35,000)
= ($94,500) ÷ ($470,000)
= 20.1%
hence, the simple rate of return is 20.1%
The same would be considered and relevant
Answer:
The assets turnover ratio is 7.03 times.
Explanation:
The assets turnover ratio tells the efficiency of a company in utilizing its assets to generate revenue. The assets turnover ratio can also be stated as the $ amount of sales generated by every $1 of the assets of the firm used.
Asset Turnover Ratio = Net Sales / Average Net Assets
Thus, for Flagship Logistics, the Assets turnover ratio is:
Assets turnover ratio = 13,000,000 / 1,850,000 = 7.027 rounded off to 7.03
Answer:
The average expected rate of return on the market portfolio is 10 percent.
Explanation:
The CAPM (fixed asset pricing) model describes the relationship between systematic risk and expected return on assets, especially stocks. CAPM is widely used throughout the financial community to value high-risk securities and achieve the expected returns on assets when taking into account the risk of those assets and the cost of capital.
The formula for calculating the expected return on an asset taking into account its risk is as follows:
ERi = Rf + βi (ERm - Rf)
where:
ERi = expected return on investment
Rf = risk-free interest rate = 4 percent.
βi = beta inversion =1.0
(ERm −Rf) = market risk premium = 6 percent.
ERi = 4 + 1 ×(6) =10
The average expected rate of return on the market portfolio is 10 percent.
Based on the scenario provided above, the banker's action is still considered to be legal despite of the fact that he provides personal details to the banker though it is also considered as highly unethical because using this information is his way of selling insurance policies in which isn't the best thing to do as a banker's job.