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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.
Calculate ever single number then subtract and find the lcf
Answer:
$42,000
Explanation:
Deferred tax liability can be defined as the tax liability which has been due for the current period but has not yet been paid such as installment sales receivable.
Insurance expense of $210,000
Tax rate of 20%
( $210,000 × .20 )
=$42,000
Therefore the amount of the deferred tax liability at the end of 2021 will be $42,000
Answer:
See below
Explanation:
Given that;
Opening capital = $44,000
Net loss = ($13,500)
Drawings = $17,500
Then,
Owner's capital balance is computed as ;
Capital at the end of the year = Opening capital + Net income(Net loss) - Drawings
Capital at the end of the year = $44,000 - $13,500 - $17,500
Capital at the end of the year = $13,000
