The law of diminishing marginal utility states that as more units of a good are consumed, the marginal utility from the consumption of the next unit becomes lesser. John's total utility from the consumption of two ice creams is 10, and his total utility from the consumption of three ice creams is 9.7.
<h3>What does the law of diminishing marginal utility State?</h3>
- According to the law of declining marginal utility, when consumption rises, the marginal utility gained from each extra unit decreases, all other things being equal.
- The incremental improvement in utility brought on by consuming one more unit is known as marginal utility.
<h3>Which law does the law of diminishing marginal utility affect?</h3>
- According to the law of diminishing marginal utility, a good or service's marginal utility decreases the more of it is used by a person.
- Consuming increasing quantities of a good gives economic actors less and less pleasure.
<h3>What is law of diminishing marginal returns?</h3>
- According to the law of declining marginal returns, increasing the number of production factors leads to lesser increases in output.
- The addition of any more of a production element after a certain level of capacity utilization would unavoidably result in lower per-unit incremental returns.
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The amount of the bad debts expense adjusting entry is:$7665.
<h3>Bad debt expenses</h3>
Using this formula
Bad debt expenses=Sales×Estimated sales percentage
Where:
Sales=$1,095,000
Estimated sales percentage=0.7%
Let plug in the formula
Bad debt expenses=$1,095,000×0.7%
Bad debt expenses= $7,665
Therefore the amount of the bad debts expense adjusting entry is:$7665.
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Answer:
Land of Milk and Honey
The real GDP in 2014 is:
= b. $40.
Explanation:
a) Data and Calculations:
Milk Honey Total GDP
Cost per gallon in 2014 $2 $1
Quantity produced 10 20
Total production value $20 ($2*10) $20 ($1*20) $40 ($20 + $20)
Cost per gallon in 2015 $2 $1
Quantity produced 12 24
Total production value $24 ($2*12) $24 ($1*24) $48 ($24+ $24)
Cost per gallon in 2016 $2.50 $1.25
Quantity produced 12 24
Total production value $30 ($2.50*12) $30 ($1.25*24) $60 ($30 + $30)
The real GDP in 2014 is the calculated value of $40. Using 2015 as the base year, there is no inflation since the unit prices of milk and honey remained the same in both years.
Answer:
Sam must report $700,000 distribution from Silver on his Income report.
Explanation:
The sale of the land is made by the corporation and the corporation is a tax payer therefore any gains and losses are for the company to pay tax on.
The deficits in the E&P are for Silver to take into account when about to pay taxes.
The basis of $200,000 is not income but cost and subtracted on the distribution income as is for Sam.
