The law of diminishing marginal returns holds for a situation in which some inputs are variable and some inputs are fixed.
<h3>What is the law of
diminishing marginal returns?</h3>
The law of diminishing marginal returns states that after some optimal level of capacity is reached in a production process, an additional factor of production would result in a lessening of output (quantity of production).
In this context, we can infer and logically deduce that the law of diminishing marginal returns would only hold for an economic situation in which some inputs are variable and some inputs are fixed.
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Answer:
20 years (scenario A) and 16 years (scenario B)
Explanation:
The real GDP will double in "n" number of years, with "n" estimated by interpolation using the formula below.
In the solutions below, we assumed current GDP to be 1, and as a result, the GDP will double to 2.
Scenario A
When you substitute 20 for "n" in the left hand side (LHS) of the equation, you will arrive at 1.99 which is approximately equal to 2. Any number below 20 will result in a number less than 2.
Thus, with an average annual real GDP growth rate of 3.5%, real GDP will double in about 20 years.
Scenario B
When you substitute 16 for "n" in the left hand side (LHS) of the equation, you will arrive at 2.02 which is approximately equal to 2. Any number below 16 will result in a number less than 2.
Thus, with an average annual real GDP growth rate of 4.5%, real GDP will double in about 16 years.
Answer:
allow the holder the option to buy shares at a specified exercise price during a specified period of time.
Explanation:
A primary market refers to the market where these securities that are being sold are issued or created
On the other hand, the secondary market can be defined as a market where various investors sell and buy securities from other investors.
Some examples of secondary market around the world are New York Stock Exchange (NYSE), NASDAQ, London Stock Exchange (LSE) and National Stock Exchange (NSE).
Executive stock options (ESOs) can be defined as an equity compensation contract that are granted to the employees and executives of a company, giving them to right to buy a specific amount of shares from the company's stock at a particular price for a specificied period of time.
Basically, ESO allows the holder the option to buy shares from the company's stock at a specified exercise price or strike price for a specific period of time.
The main purpose of an ESO is to serve as an incentive to make the beneficiaries or holders improve the financial performance of a company while closely aligning their interests with those of the shareholders of the same company.
Answer:
7.7 per direct labor hour
Explanation:
Number of direct labor hours = 700,000 / 25
Number of direct labor hours = 28,000 labor hours
Overhead cost = Shop and repair equipment depreciation + Shop supervisor salaries + Shop property taxes + Shop supplies
Overhead cost = 46,100 + 128,300 + 23,300 + 17,900
Overhead cost = 215,600
Predetermined overhead rate = Overhead cost/Direct labor hours
= 215,600 / 28,000 labor hours
= 7.7 per direct labor hour
