As the slope of the production function becomes flatter as more capital is added, the marginal product of capital is "decreasing".
<h3>What is marginal product of capital?</h3>
The extra output that emerges from adding one unit of capital typically cash is known as the marginal product of capital.
This statistic frequently applies to start-up businesses that depend on private financing to get off the ground. The increased output brought on by adding a worker is known as the marginal product of labour.
- Diminishing marginal returns, the marginal product that starts to decline, is an indicator of this phenomenon.
- The value that these additional units offer to the organisation, in terms of output generated, starts to diminish because there aren't enough workers to operate with the extra equipment.
To know more about the importance of marginal product, here
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Answer:
loss at extinguishment 8,122.50 dollars
Explanation:
we should compare the amount we pay for the bonds and the book value of the bonds:
book value 978,877.50*
call price <u> (987,000.00) </u>
loss (8,122.50)
*We are given with the value at January 1st we must adjust for the value at july 1st using effective-rate method
970,500 x 11%/2 = 53,377.5 interest expense
1,000,000 x 9%/2 = 45,000 cash outlay
amortization 8,377.5
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<em><u>carrying value:</u></em>
970,500 + 8,377.5 = 978,877.5
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Answer:
Millionaires suggest several paths to building your wealth and becoming a millionaire. ... You should work to make more money so that you can invest more. Saving is also a great way to become a millionaire. In other words, when you earn money, put it in a savings, retirement or some other investment account.
Explanation:
