Answer: C. use 0.8 fewer units of capital.
Explanation:
The Marginal Rate of Technical Substitution (MRTS) shows how much you can decrease capital or labor by in order to keep production constant if you increase either capital or labor.
It is calculated by the formula:
= Marginal product of labor / Marginal product of capital
= 4 / 5
= 0.8
<em>The firm should use 0.8 fewer units of capital in order to maintain the same production level. </em>
Answer:
Option "D" is the correct answer to the following question.
Explanation:
Analogous Estimation leverages information from previous projects to predict the length or expense of your present project, hence the name. When you have limited knowledge on your present project, you can utilise comparable estimate. Analogous estimate is a simple approach to use.
So, it is not a forecasting method.
Answer: B. use of market price leads division managers to act in a manner that is inconsistent with corporate goals.
Explanation: Market-based transfer pricing is perhaps the easiest form of transfer pricing when it comes to determining the price that will be paid between divisions of the same company. It uses the normal market rate that would be paid if the goods were bought on the open market.
Transfer pricing helps in reducing duty costs by shipping goods into countries with high tariff rates at minimal transfer prices so that the duty base of such transactions is fairly low.
Answer:
to enroll in a 401k and investing in the stock market.
Explanation:
According to my research on investment strategies, I can say that based on the information provided within the question their best options to accomplish their goal would be to enroll in a 401k and investing in the stock market. The 401K is a retirement fund that grows over years and the stock market also provides a decent ROI for your money, especially stocks like the S&P 500 which are the safest options and grow steadily over years.
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