The decision to expand depends on the marginal cost of serving more clients and the marginal revenue he will earn from serving more clients.
<h3>What is marginal cost and marginal revenue?</h3>
Marginal revenue is the change in total revenue when output is increased by one unit. Marginal cost is the change in total cost when consumption is increased by one unit.
Economic theory suggests that output should be increased if the marginal revenue exceeds the marginal cost. If marginal cost is greater than marginal revenue, the business should not be expanded. Profit is maximised when marginal revenue is equal to marginal cost.
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Answer:
50 Months
Explanation:
If there is no compound interest it would be 50 Months. You would divide 250,000 by 5,000 to get the months.
Answer:
a. The quality of rental housing units falls
c. The quantity of available rental housing units falls.
Explanation:
As the landlord cannot receive a desired return for their investment they will stop improving and doing proper maintenance of the property to obtain it.
They will also be less likely to rent and would prefer to sale and move away from the real-state investment business in the region to more profitable region or better business. This will make the ernt go up as there is less offer as well so the policy backfires.
Stoping the market to work property will cause market failures and the outcome won't be the desired
Answer:
$7,650
Explanation:
Calculation for the marginal revenue product of the fifth unit of labor
Using this formula
Fifth unit of Labor marginal revenue product=Fifth Quantity of Output*Marginal Revenue
Let plug in the formula
Fifth unit of Labor marginal revenue product=1,530 *$5
Fifth unit of Labor marginal revenue product=$7,650
Therefore the marginal revenue product of the fifth unit of labor is $7,650
Answer: Economy of the country.
Explanation:
The environmental characteristics affecting businesses in Rhenasia is the negative economy of the country. The country of Rhenasia is facing a recession in their economy, this has directly led to a drop in sale of businesses across the country.