Answer:
The correct answer is: Typically, some resources are better suited for producing one good than another, which means that there are diminishing returns when moving such resources away from producing what they are best suited for.
Explanation:
A production possibility curve shows the different combinations of two goods that can be produced using all the given resources. Since resources are scarce, to increase the production of one good we need to decrease production of the other.
But resources are specialized and cannot be perfectly substituted between their two uses. So as we go on increasing production of one good the opportunity cost of sacrificing its alternative goes on increasing.
Because of this increasing opportunity cost the shape of the frontier is downward sloping, bent outwards and concave to the origin.
Answer:
$154,000
Explanation:
Calculation to determine the total conversion cost
Using this formula
Total conversion cost=Direct labor cost incurred
+Applied factory overhead
Let plug in the formula
Total conversion cost =$109,800+$44,200
Total conversion cost=$154,000
Therefore Total conversion cost is $154,000
Answer:
.d amount by which consumption increases when disposable income increases by $1.
Explanation:
The marginal propensity to consume is measured by measuring what proportion of a $1 increase in income is spend on consumption, so if the marginal propensity to consume is 0.85 it means that when income increases by $1 consumption will increase by $0.85 as (0.85*1)= 0.85
Answer:
The first five terms of the sequence are:
First year: $3270.00
Second year: $3564.30
Third year: $3885.09
Fourth year: $4234.75
Fifth year: $4615.87
Explanation:
When we're dealing with compound interest rates we're dealing with interests being re-invested into the original investment. This means that the new interests of one period will bear interests in the next period. This can be simply calculated using the compound interest formula.
The formula for compound interest rates is 
Where:
<em>P</em> is the principal amount being invested,
<em>i</em> is the interest rate,
<em>n</em> is the number of years.
So for the first year we replace in the formula with the given values:
3000 × 
= $3270
And for the rest of the years we only need to modify the value of <em>n</em>.
For the second year we'd have:
3000 × 
= $3564.3
And so on.
Answer:
A. negative, but the minus sign is ignored.
Step-by-step explanation:
The price elasticity of demand is negative, but the minus sign is ignored.
By definition, price elasticity of demand can be defined as the degree of responsiveness of a change in quantity demanded as a result of a change in price of the commodity.
That is, one percent change in price leads to one percent change in quantity demanded.
Price elasticity of demand is negative but the minus sign is ignored. In economics, we interpret the value in absolute terms such that the minus sign is ignored. When PED is negative, it implies that a one percent change in price of a commodity will lead to a small change in quantity demanded of the commodity. In this case, PED is fairly inelastic; that is, Ed < 1. The commodity in question is a normal good and is conformed to law of demand which states that the higher the price of a commodity, the lower the quantity demanded, and vice versa, all things being equal (celeris paribus).
