Is your boss right? A. Yes, you can tell by the way the income shares for each factor move in opposite directions over time. B
. No, if it were a Cobb-Douglas production function, the income shares would be constant over time. C. The production function cannot be determined without knowing how real GDP changed over time. D. No, if it were a Cobb-Douglas production function, the income shares would change in the same direction over time.
1 answer:
Answer: B. No, if it were a Cobb-Douglas production function, the income shares would be constant over time.
Explanation:
The Cobb-Douglas production function is usually used to show the relationship between capital and labor( can be used for other variables) and how much output they can produce at varying levels.
The thing about the Cobb-Douglas function however, is that it assumes a constant rate of income shares overtime. This country's income on the other hand, sees its income shares fluctuating overtime so the Cobb-Douglas function is not a good representation for them.
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Answer:
So, accounting rate of return = 33 %
Explanation:
given data
net income after tax = $179,850
initial cost = $545,000
time = 7 year
salvage value = $34,000
we will get here the accounting rate of return
solution
as we know that accounting rate of return is express as
accounting rate of return = Net income ÷ initial investment .................1
put here value and we get
accounting rate of return =
So, accounting rate of return = 33 %