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ahrayia [7]
3 years ago
12

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

Business
1 answer:
Likurg_2 [28]3 years ago
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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Answer: A. a downward-sloping labor demand curve.

Explanation:

If the marginal product of labor is diminishing then that means that for every extra worker hired, less products are made than the last worker. As a result of this, companies will not want to pay high wages to workers because they would be bringing in less revenue when hired.

This will cause a downward-sloping labor demand curve that shows that as more workers are hired, the company would like to pay less wages because each new worker is only producing less than the last worker.

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3 years ago
When is VAT added to a product’s price?
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VAT added to the products price at the stage of sale.

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<u>Explanation:</u>

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3 years ago
Under which tab and group can you find the control to add a section to a presentation?
Tpy6a [65]

Answer: the answer is B

6 0
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Answer:

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On June 1, 2016, Enne Brahtz Corporation received $3,600 as advance payment for 12 months' advertising. The receipt was recorded
Simora [160]

Answer:

Unearned Fees ($3,600 × 6 months ÷ 12 months) $1,800

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Explanation:

The adjusting entry is shown below;

Unearned Fees ($3,600 × 6 months ÷ 12 months) $1,800

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The six months could be computed from June 1 to December 31

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