Assuming that you received $500 for your birthday, spent $400 of it, and saved the remaining $20. There are 20 MPs, or marginal propensities to save.
MPS= change in savings/change in income. A change in income of $500 changes savings by $20
<h3 /><h3>Why Do People Have a Marginal Propensity to Consume?</h3>
- The opposite of MPS is the marginal propensity to consume (MPC). The link between income and consumption is quantified with the aid of MPC.
- By dividing the change in spending by the change in income, one can determine their marginal propensity to consume.
- In order to calculate how much spending rises for every dollar of increased income, MPC measures this relationship.
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One of the four guiding principles of is to recognize the bigger goal of marketing. It looks at moral standards and guidelines in a business setting.
Making a living or earning money through the production, acquisition, and sale of items is referred to as business (such as goods and services). Furthermore, it refers to "any activity or enterprise undertaken for profit."
The owner of the business is responsible and liable for any debts incurred by the business since despite having a business name, they are one and the same. If the company accrues debts, the creditors may seize the owner's personal property. Corporate tax rates cannot be applied to a firm structure. All profits earned by the business are subject to personal taxation by the owner.
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Answer:
The best answer to handle the scenario given in the question is providing opportunities to learn new skills and knowledge.
Explanation:
Since the current condition of the company is stagnant in terms of profitability, and thus incentives such as bonuses and pay raise are not viable for employees to receive, it is better to rely on other forms of reinforcements that can be used to motivate employees to perform to the best of their abilities. A way to do this would be giving them opportunities to learn about the skills that they have yet to attain from working in the company, even though they have the desire to do so.
Answer:
1. Sunk costs : $3.2 billion is a sunk cost as it is already incurred.
2. Opportunity costs: $352 million investment for finishing project is an Opportunity cost. However it will yield $15.1 million per annum for next 5 Yrs.
So Present Value of this CF is less than $15.1 5=$75.5 million.
So Net Present Value = CF0 + CF1 + ......+ CF5 = -352 + Less than 75 = Negative.
So another Opportunity of selling the Satellite for $460 million is a better option.
3. Specify the relevant cash flows.
If additional $352 million investment is undertaken,
$352 million will be Cash outflow in Y(0). It will result in Annual CF of $15.1 million for next 5 yrs.
Answer: Insurance premium
Explanation: