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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.

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Which of the following are true if you pay only the minimum amount each month towards your credit card bill?a. You will be charg
BigorU [14]

Answer:

The correct answer is A and C as both are true statement.

Explanation:

Credit Card is a facility which is offered by banks to borrow money and it could be used by the borrower for buying expensive goods and the services up front. It has a time period, in which the borrower need to make payment for the amount used by the borrower along with the interest charged.

So, if the borrower paid the minimum amount towards the credit card, then the borrower is still in debt until clears or paid the whole amount and also will be charged the interest against the remaining balance or amount.

4 0
3 years ago
Pina Colada Corp. has the following transactions during August of the current year.
const2013 [10]

Answer and Explanation:

The indication of the basic analysis and the debit credit analysis is as follows;

Date                   Basic Analysis                    Debit - Credit Analysis

Aug. 1       The asset Cash is increased;     Debits increase assets;

              the stockholders' equity account   Debit Cash

                Common stock is increased.         $10,880

                                                      Credits increase stockholders' equity

                                                                      Credit Common stock

                                                                             $10,880

Aug. 4            The asset Prepaid Insurance        Debits increase assets;

                           is increased;                              Debit Prepaid Insurance

              the asset Cash is decreased.               $ 1,500

                                                                              Credits decrease assets;

                                                                             Credit Cash

                                                                              $ 1,500

Aug. 16        The asset Cash is increased;        Debits increase assets;

           the revenue Service revenue               Debit Cash

             is increased.                                         $880

                                                                          Credits increase revenues:

                                                                          Credit Service revenue

                                                                          $880

Aug. 27      The expense Salaries expense    Debits increase expenses:

                  is increased;                                Debit Salaries expense

                 the asset Cash is decreased.       $680.

                                                                       Credits decrease assets:

                                                                      Credit Cash

                                                                         $680

3 0
3 years ago
Larry is declared mentally incompetent. Beth, Larry’s friend, insists that Larry transfer her considerable assets to Beth "for s
DaniilM [7]

Answer:

Donative intent.

Explanation:

Donative intent refers to the conscious desire to make a gift. This is different from giving something for nothing by mistake or under pressure.

3 0
2 years ago
The common stock of Auto Deliveries sells for $26.46 a share. The stock is expected to pay $2.00 per share next month when the a
denpristay [2]

Answer:

The market rate of return on the stock is 12.55%

Explanation:

Computing the market rate of return on the stock is as:

Selling price of common stock = Expected price per share / (Rate of return [R] - Dividend)

where

Selling price of common stock is $26.46

Expected price per share is $2.00 per share

Dividend is 5.0%

Putting the values above:

$26.46 = $2.0 / (R - 5%)

$26.46 = $2.0 / (R - 0.05)

R - 0.05 = $2.0 / $26.46

R - 0.05 = 0.0755

R = 0.0755 + 0.05

Rate of return = 0.1255 or 12.55%

5 0
3 years ago
2. Setting a goal, reaching it, and then setting a bigger goal is a characteristic trait of a _______ entrepreneur. A. forthrigh
gulaghasi [49]
Setting a goal, reaching it, and then setting a bigger goal is a characteristic trait of a Self-motivated Entrepreneur.
5 0
3 years ago
Read 2 more answers
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