1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
oksano4ka [1.4K]
3 years ago
15

A firm's average cost increases as it increases its output by expanding its plant and hiring additional workers (its only inputs

to production). The firm's owner blames the increase in per-unit costs on the law of diminishing marginal productivity. The owner's reasoning is:
Business
1 answer:
KiRa [710]3 years ago
7 0

Answer:

The correct answer is letter "D": incorrect because all inputs are varied in the example.

Explanation:

The law of Diminishing Marginal Productivity states that increasing one variable will keep the others the same. My initially increase output but eventually adding more of that one variable may lead to a diminishing rate of return. The law helps explain why increasing production is not always the best way to increase profits.

The law of Diminishing Marginal Productivity only applies when certain inputs are fixed, but in this example, the amount of labor available varies since it is increasing.

You might be interested in
Is a business cycle a type of recession?<br> yes or no?
Kruka [31]

Answer:

The Answer is gonna be Yes

8 0
2 years ago
On January 1, 2020, Martinez Company makes the two following acquisitions. 1. Purchases land having a fair value of $330,000 by
vova2212 [387]

Answer:

Explanation:

a)

Date Account Titles and Explanation Debit Credit

January 1, 2020 Land $360,000.00

Discount on notes payable $246,621.00

Notes payable $ 606,621.00

(To record purchase of land by issuing note payable)

PV of $606,621 discounted at 11% =606,621/(1.11)^5 = $ 360,000

2.

Computation of the discount on notes payable:

Maturity value $560,000

Present value of $560,000 due in 8 years at 11% = $560,000 * 0.43393 = $ 243,000

Present value of $39,200 payable annually for 8 years at 11% annually—$39,200 * 5.14612 = $ 201,728

Present value of the note = $ 243,000 + $ 201,728 = $ 444,728

Discount = $ 560,000 - $ 444,728 = $ 115,272

Date Account Titles and Explanation Debit Credit

January 1, 2020 Equipment $444,728.00

Discount on notes payable $115,272.00

Notes payable $ 560,000.00

(To record purchase of equipment by issuing note payable)

b)

1.

Date Account Titles and Explanation Debit Credit

December 31, 2020 Interest expense ($ 360,000*11%) $39,600

Discount on notes payable $39,600

(To record the interest expense recorded and discount amortized)

2.

Date Account Titles and Explanation Debit Credit

December 31, 2020 Interest expense ($444,728 * 11%) $48,920

Discount on notes payable $9,720

Interest Payable ( $ 560,000 * 7%) $39,200

(To record the interest expense recorded)

7 0
3 years ago
Should Obama Care system be continued into the future ?? Yes or No and why ??
chubhunter [2.5K]
I believe so considering an average of 20 million US citizens depend on it. Hope this helps.
7 0
3 years ago
Read 2 more answers
​Disney's Hong Kong Disneyland and Shanghai Disneyland work in combination with the Chinese governmentdashowned Shanghai Shendi
aalyn [17]

Answer:

Joint ownership

Explanation:

A sort of ownership of real or Personal Property by at least two people in which each claims a unified enthusiasm for the entirety.

he people, who are called joint occupants, share equivalent responsibility for property and have the equivalent, unified right to keep or discard the property.

Example :

Two colleagues may together claim a business property. In the event that two people own any organization and one of them was died then  the entire of the complex has a place with the co-proprietor, and not the decedent's beneficiaries.

8 0
3 years ago
What type of a goal is graduating from college in four years?
eimsori [14]

Answer:

Explanation:

Any goal it's your opinion to be a successful person. Just never give then you will get it.

8 0
2 years ago
Read 2 more answers
Other questions:
  • When a third party knows that an agent is acting on behalf of a principal, but does not know the identity of the principal, the
    6·1 answer
  • Antiques ‘r' us is a mature manufacturing firm. the company just paid a dividend of $12.30, but management expects to reduce the
    10·1 answer
  • Who has the most money In the world?
    12·2 answers
  • Catherine works for BluCorp, which has an employee handbook stating that employees will be terminated for good cause. Catherine'
    5·1 answer
  • Sales taxes tend to be __________ because low income individuals tend to spend more of their income.
    9·1 answer
  • David, an Alabama resident, files a suit in an Alabama court against QuickAds, an Internet company based in Georgia that provide
    12·1 answer
  • on holiday weekends thousands of people picnic in state parks. some picnic areas become so overcrowded the benefit or value of p
    8·2 answers
  • Journalize the following merchandise transactions. The company uses the perpetual inventory system.
    5·1 answer
  • The implementation of an effective internal control system eliminates the possibility of fraud. This statement is:.
    9·1 answer
  • A company president attends a groundbreaking ceremony for a new children's hospital located near company headquarters. the presi
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!