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3 years ago

Explain why the marginal rate of technical substitution is likely to diminish as more and more labor is substituted for capital.

1 answer:

8 0

Answer: This is because the marginal rate of technical substitution is the ratio of the marginal product of labour to that of capital and for the output to be constant opportunity cost comes in, one input has to be reduced to increase the other input.

Explanation:

The marginal rate of technical substitution (MRTS) shows the amount by which the quantity of an input can be lowered when an extra unit of another input is utilized on order for the output to remain constant.

The marginal rate of technical substitution is likely to reduce as more capital is substituted for labor because the marginal rate of technical substitution is the ratio of the marginal product of labour to that of capital and for the output to be constant opportunity cost comes in, one input has to be reduced to increase the other input.

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C.Plenty of nutrients

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3 years ago

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What is round to the nearest 10.000?

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3 years ago

The company has 15 employees, who earn a total of $1,960 in salaries each working day. They are paid each Monday for their work

I am Lyosha [343]

Answer:

Preparation of the adjusting entries as of December 31, 2015.

Dr Salaries Expense 3,920

Cr Salaries Payable 3,920

Explanation:

Since we were been told in the question that all the 15 employees worked the first 2 days of that week, the Adjustment we therefore be $3,920( 1,960×2) . And the transaction will be recorded as:

Dr Salaries Expense 3,920

Cr Salaries Payable 3,920

The Adjustment will be :

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3 years ago

Argue why a product launch that exceeded expectations may actually be a negative result.

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About 30 to 45% of new products fail to deliver any meaningful financial return. This typically happens due to a number of reasons, from poor product / market fit, failure to understand customer needs (or fixing a non-existing problem), to a lack of internal capabilities.

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2 years ago

Tarrant Corporation was organized this year to operate a financial consulting business. The charter authorized the following sto

Sauron [17]

Solution :

Tarrant Corporations

First of all let us prepare the Journal Entries

1. Cash (7000 x 38) 266,000

Common stock (7000 x 19) 133,000

Paid in capital in excess of stated value

common stock (7000 x 19) 133,000

2. Cash (2600 x 43) 111,800

common stock (2600 x 19) 49400

Paid in capital in excess of stated value

Common stock (2600 x 24) 62400

3. Income summary 7000

Retained earing 7000

Tarrant corporation

Balance sheet - shareholder's section

Share holder's equity

Contributed capital

$ 19 par, issued and outstanding 9600 shares = 182400

Paid in capital in excess of par 196800

Total contributed capital 379200

Retained earnings 7200

Total shareholder's equity 372,000

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3 years ago