Answer:
The primary difference between those two concepts is focus that each term has. The first one focus on the relationship between the level of production and the level of return. While the second one focus on the relationship between the level of production and the amount of factors used for that production.
Explanation:
One the one hand, the law of diminishing marginal returns is a concept known in the microeconomics theory due to the fact that it establishes the relationship between the productivity and the income for every aspect of it. Meaning that, when the productivity increases because of the increase of only one factor of production then the income will start to slowly decrease, confirming that when only one factor is increased the production will start to be incomplete and the return will decrease for that.
On the other hand, the law of diminishing marginal rate of technical substitution indicates the relationship between the level of output and the different factor used to produce. Meaning that, it shows how to keep the level of output the same while making changes in the amount of factors used.
Answer:
Minimising risk of loss
Explanation:
One of the most significant values of investment is to guarantee that you have a extended portfolio. The key advantage of constructing a portfolio is that it helps in Limiting danger of misfortune. If one venture performs ineffectively over a specific period, different speculations may perform better over that equivalent period, decreasing the potential misfortunes of your venture portfolio from concentrating all your capital under one kind of speculation.
Answer:
Effect on income= $9,600 increase
Explanation:
Giving the following formula:
Unitary contribution margin= $90
The marketing manager believes that a $7,500 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales.
<u>To calculate the effect on income, we need to use the following formula:</u>
Effect on income= increase in total contribution margin - increase in fixed costs
Effect on income= 190*90 - 7,500
Effect on income= 17,100 - 7,500
Effect on income= $9,600 increase
Answer:
Capitalization rate
Explanation:
Capitalization rate is a rate mostly used in real estate valuation that is used as a standard to compare a variety of real estate investments. It is calculated in percentage and in terms of the ratio of the net operating income provided or produced by an asset to the original cost or market value of the of the asset.
Cheers.
Answer:
$27.20
Explanation:
The computation of the predetermined overhead rate is shown below:
= Variable overhead rate per hour + Fixed Overhead rate per hour
where,
Variable overhead rate per hour is $9.50
And, the fixed overhead rate per hours is
= budgeted fixed manufacturing overhead ÷ direct labor hours
= $130,980 ÷ 7,400
= $17.70
So, the predetermined overhead rate is
= $9.50 + $17.70
= $27.20
By adding the variable overhead rate per hour and the fixed overhead rate per hour we can find out the predetermined overhead rate
