As we use much more of a product, we experience a diminishing marginal utility.
<u>Explanation:
</u>
The Law of Marginal Benefit Declining says that somehow the marginal use of each extra unit declining rises as consumption. The limited utility is generated as the utility shift is absorbed by a supplementary unit. Utility is an economic principle used to describe pleasure or satisfaction.
For example, a person may purchase a certain brand of chocolate for a little while. Soon, they may buy too little and choose another type of chocolate or buy cookies alternatively, because the fulfilment they initially received from chocolate is declining.
Based on the information given, it can be deduced that the marginal product of labor will decrease and the marginal product of capital will increase.
From the information given, it was stated that Max Company produces electronic gadgets using labor and capital and that he increases labor and decreases capital in order to produce the same quantity of gadgets.
Due to this, according to the law of diminishing marginal productivity, the marginal product of labor will reduce and that of capital will rise.
Learn more about labor on:
brainly.com/question/333305
It is important because that is how you budget and how you are able to save money if an emergency comes up
Answer:
d. $14,250
Explanation:
Calculation of the amount that Gum should report as estimated warranty liability on its December 31, 2009 balance sheet
First step
2% within twelve months following the sale + 4 % in the second twelve months following the sale.
Will give us 6%
Second step is to calculate the estimated warranty liability that should be reported
Sales Total of $400,000×6%
=$24,000
Hence,
Estimated warranty liability =$24,000 -Total of actual warranty expenditures of $9,750
Estimated warranty liability=$14,250
Therefore the amount that Gum should report as estimated warranty liability on its December 31, 2009 balance sheet will be $14,250