Answer:
D) when marginal returns become negative.
Explanation:
Generally diminishing marginal returns lead to lower returns, but when capacity constraints are extreme, then adding one extra unit of labor or capital might result in a lower total production, and diseconomies of scale.
For example, you own a pizza place. One worker can produce 10 pizzas per hour, 2 workers can produce 19 pizzas per hour, 3 workers will produce 25 pizzas per hour, but a fourth worker can barely fit in the kitchen and total production will fall to 24 pizzas per hour. When the addition of one extra unit of labor or capital generates a negative return, the marginal return will result in a lower output.
The same applies to a larger company, e.g. a company has a sales team of 50 which generate 400 sales per week. Since the company wants to increase sales they hire 25 more salespeople and total sales increase to 520, but the market is already being saturated, and the salespeople are starting to compete against each other. But management believes they can still increase their sales and hires 25 more salespeople, but the total amount of sales doesn't increase and might even decrease. Instead of working as a team, the salespeople are working against each other and they are ruining other salespeople's sales in order to try to close it themselves.
Just because you keep adding workers, it doesn't mean that more work will get done.
Answer:
Fixed costs do not depend on the level of output. They are therefore paid regardless of production.
Variable costs are only incurred as production goes on.
Fixed cost
a. Interest rate on current debt
b. Regulatory compliance costs
c. Annual salaries of top management
g. Lease on building
h. Industrial equipment costs
Variable Costs
d. Cost of metal used in manufacturing
e. Cost of wood used in manufacturing
f. Postage and packaging costs
Answer: B. Lower Taxes and increase in spending
Explanation:
Recession is a period of less productive activity , demand deficiency , deflationary gap .
Fiscal Solution is that approach to solve such issues - which uses government budgetary elements (tax , govt spending /subsidy) to adjust excess / deficient demand
To correct the demand lack while recession , government should - Reduce Taxes , Increase govt spending / subsidy . So that ,people's disposable income & hence their demand increases .
I
Answer:
Yes
Explanation:
Federal Budget can be affected by natural disasters as FEMA (Federal Emergency Managment Agency) responds to the requests of states that have been hit by natural disasters.