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RSB [31]
3 years ago
6

The ninth worker adds 25 units to total production. The tenth worker adds 22 units to total production. The company has:________

___.
Business
1 answer:
Anit [1.1K]3 years ago
7 0

Answer:

Diminishing returns

Explanation:

A firm producing widgets (term for a generic good) has two factors of production. The factory and labour. The capacity of the factory is fixed, and the marginal cost (MC) of labour is the same (i.e. each new worker will cost the same).

There are two stages to how MC is affected.

1. Increasing returns (MC goes down)  

As output begins to increase, the large manufacturing  processes/equipment  still not fully utilised means and the additional labour  can be productive as they can always use the equipment to its full potential due to which the MC is relatively low.

2. Constant returns (MC goes sideward)

At this point, labour is producing its optimal output per unit. The marginal cost  is therefore at its lowest.

3. Diminishing returns (MC goes up)

The more labour that is employed, the less marginal output it is able to produce.  This could be a result of too many people to efficiently operate/ rotate use of  machinery. The cost increases more and more to generate an extra unit of  output, because of labour exhibiting diminishing returns in the short run.

In this question, the 10th worker has added 22 units which is 3 units less than the number of units added by the 9th worker, thus the company is producing less marginal output for each worker. so based on the above discussion it can be concluded that the company has Diminishing returns.

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Robert White will receive from his investment cash flows of $4,450, $4,775, and $5,125. If he can earn 7 percent on any investme
artcher [175]

Answer:

Total future value= $16,402.09

Explanation:

Giving the following information:

Robert White will receive from his investment cash flows of $4,450, $4,775, and $5,125. He can earn 7 percent on any investment that he makes.

To calculate the future value, we need to use the following formula for each cash flow:

FV= PV*(1+i)^n

Year 1= 4,450*1.07^3= 5,451.44

Year 2= 4,775*1.07^2= 5,466.90

Year 3= 5,125*1.07= 5,483.75

Total future value= $16,402.09

6 0
3 years ago
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On March 1, a business paid $3,840 for a twelve-month liability insurance policy. On April 1, the business entered into a two-ye
Helen [10]

Answer:

a. Insurance expense for the month of march

= ($3,840 / 12 months) * 1 month

= $320 per month

b. Balance in prepaid insurance as of March 31

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= $3,520

c. Equipment rent expense for the month of April

= ($23,160 / 24 months) * 1 month

= $965

d. Balance in prepaid equipment rental as of April 30

= Nil ($0) as it is not mentioned that payment has been made, it is only mentioned that two year rental contract has been entered into.

4 0
3 years ago
38) A lottery ticket states that you will receive $250 every year for the next ten years. a. What is the present value of the wi
Stells [14]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

A lottery ticket states that you will receive $250 every year for the next ten years.

A)  i=0.06      ordinary annuity

PV= FV/(1+i)^n

FV= {A*[(1+i)^n-1]}/i

A= annual payment

FV= {250*[(1.06^10)-1]}/0.06= $3,295.20

PV= 3,295.20/1.06^10=1,840.02

B) i=0.06 annuity due (beginning of the year)

FV= 3,295.20 + [(250*1.06^10)-1]= $3492.91

PV= 3492.91/1.06^10= $1,950.42

C) The interest gets compounded for one more period in an annuity due.

5 0
3 years ago
Which is a true statement?
Softa [21]

Answer:

O A real interest rate that is higher than current inflation is desirable,

Explanation:

The real rate is the nominal rate of interest after considering the inflation rate.  The nominal rate is the interest rate quoted by financial institutions.  It shows the percentage of return expected on a deposit or loan. The inflation rate communicates the rate at which prices are increasing in the economy.

The real rate is equivalent to the nominal minus the inflation rate. An ideal situation is when the real rate is higher than the inflation rate. In such a situation, the rate of money growth is higher than the price increases. It means the invested amount will increase in value. At the end of a period, the invested amounts will buy more goods and services than

3 0
2 years ago
Sykora Corp. sells $540,000 of bonds to private investors. The bonds are due in 5 years, have a 6% coupon rate and interest is p
Katen [24]

The effective rate on these bonds is 7.17%

<h3>What is the effective rate?</h3>

The effective interest rate of a bond is the rate that equates the present value of the bond's future interest payments and the bond's maturity value to the bond's current market value.

The effective interest rate can be determined using a financial calculator:

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effective interest rate = 7.17%

To learn more about effective interest rate, please check: brainly.com/question/13735414

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2 years ago
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