Given oppurtunity cost in an account. The family's net profit is $10,000, but in accounting terms it would be ($10,000).
<span>Diminishing marginal returns - By investing in hiring an additional worker, Michelle does not receive twice the productivity compared to when she had only 1 worker. Productivity only increased by roughly 50%. I would consider the worker to be more of an investment, and thus count as diminishing marginal returns, rather than decreasing returns to scale, which I consider to apply more to assets, such as machines for manufacturing or in the case of the scenario, an additional kiln.</span>
Answer:
There are two answers to this::
1. No social or moral taboos on production
2. A competitive market system
Answer:
provides individuals with freedom of choice.
Explanation:
Adam Smith
is a renowned Scottish economist who wrote "The Wealth of Nations"and established the foundation principles of capitalism.
Capitalism
Is simply defined as an economic system that uses on open competition in a free market, whereby individuals and companies own the means of production and operate for profit.
It gives room for individuals and private businesses to decide most of economic matters. It has led to the development of mercantilism, international trade, rise of the middle class and others.
Benefits of capitalism includes individual freedom is closely related to economic freedom, market economies produce a huge variety of goods and others.
Answer:
Option "Inversely" is correct.
Explanation:
Option “Inversely” is correct because the increase in price level exhibits inflation and a rise in inflation decreases the purchasing power of money. However, if the price level decreases or inflation decreases, then the purchasing power of money increases. Therefore we can see that increase in price level decreases the purchasing power and a decrease in price level increases the purchasing power. Therefore, there is an inverse relationship.