Answer: Third
Explanation:
Diminishing returns to labor refers to the phenomenon where every additional worker leads to an increase in production at a decreasing rate.
Using the scenario described, when there was only one employee the company could mow 4 lawns a day. They added a 2nd worker and that figure went to 9 lawns a day which is an increase of FIVE.
When they added a 3rd worker, the figure again went up but only to 12 which is an increase of THREE only as opposed to the last increase of FIVE.
After the third worker therefore, there was an increase but at a smaller rate.
Answer:
Marginal cost is defined as the change in <u>total </u>cost when output changes by one unit in the short run.
Explanation:
<em>Marginal cost is defined as the change in total cost when output changes by one unit. In the short run.</em>
<em>It is the amount by total cost will increase as a result of producing additional one more unit of a product.</em>
Answer:
The answer is c. price
Explanation:
Discount pricing is a type of pricing strategy where you offer customers a discount when they buy in bulk . The goal of a discount pricing strategy is to increase customer traffic, clear old inventory from your business, and increase sales.
The first answer is is outsourcing as the product is beign made in a foreign country and they do this to reduce production cost, where they do not have to gather raw materials for themselves.
Answer:
Equilibrium Y = 462.5 , Equilibrium C = 362.5 , Equilibrium S = 100
Explanation:
- At equilibrium : Aggregate Demand = Aggregate Supply
[ AD = C + I ] = [ AS = C + S = Y ]
45 + 0.6Y + 0.05 W + 100 = Y → 45 + 0.6Y + 0.05 (800) + 100 = Y
45 + 40 + 100 + 0.6Y = Y → Y ; 185 + 0.6Y = Y
Y - 0.6Y = 185
0.4Y = 185
Y = 185 / 0.4 = 462.5
- Consumption C = 45 + 0.6Y + 0.05W
Putting Y value : C = 45 + 0.6 (462.5) + 0.05 (800) → C = 45 + 277.5 + 40
C = 362.5
- Income Y is either consumed (C) or saved (S). So, Y = C + S
Hence , S = Y - C → 462.5 - 362.5 = 100
Alternatively : As C + I = C + S
Hence, I = S
Equilibrium Savings = Given Investment = 100