Answer:
If the Cobb Douglas production funtion is
This function is homogeneous of degree 3: To understand that, we first must know that a function f(K,L) is homogeneous of degree "m" if . Intuitively, this means that, when you increase your productive factors (in this case, we are talking about a production function), by a factor "", your output increases by . Depending on the value of m, the function will exhibit increasing returns to scale (m>1), decreasing returns to scale (m<1) or returns to scale equal to 1 (when m=1).
- In this case, . Applying distributive power's property, we get .
- Because of power property, we can associate terms and get (remember that .
- Finally, . In this case the function is homogeneous of degree 3 because when multiplying K and L by , the function as a whole is multiplied by .
Euler's Theorem: this theorem states that, if a function is homogeneous of degree "m", the following must hold: .
- To prove it, we should then calculate the partial derivative of Q with respect to L and K respectively, and apply the previous definition to see if the statement holds.
- Applying Euler's Theorem then means should be equal to (remember that in this case, m=3, see previous exercise).
- Solving
- Then the Euler's Theorem is verified!
Answer:
(A). - $ 120
Explanation:
The changes to cash are from the following rules
Increase in assets and decrease in liabilities is a decrease in cash
Decrease in assets and increase in liabilities is and increase in cash
Using the data in the question,
Cash Movement
increase in inventories $ 300 ( $ 300)
Increase in accounts payable $ 150 $ 150
Decrease in accounts receivable $ 120 $ 120
Decrease in other current assets $ 60 $ 60
Decrease in other current liabilities $ 150 <u>($ 150)</u>
Net movement in Cash $ (120)
The annual fee that is charged mutual funds to offset promotion and selling expenses is known as 12(b)-1 fee.
Basically, the term "12b-1 fee" refers to the distribution and service fees charged by mutual funds on an annual basis.
- The 12b-1 fee is used to cover the costs of marketing, selling fund shares, providing shareholder services etc.
In conclusion, the annual fee that is charged mutual funds to offset promotion and selling expenses is known as 12(b)-1 fee.
Read more about 12(b)-1 fee:
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Answer:
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Explanation:
Answer:
e. They have similar strategic resources and strategies
Explanation:
They have similar strategic resources and strategies because they have competitive parity which means both the firms are performing competitively.