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jasenka [17]
3 years ago
14

If a firm hires one worker and eliminates four units of capital, and hires one more worker and replaces three more units of capi

tal, keeping output constant, then
A) workers and capital are perfect substitutes.
B) there are decreasing returns to scale.
C) the firm is experiencing a diminishing marginal rate of technical substitution.
D) the firm is operating inefficiently because capital is more efficient than workers.
Business
1 answer:
Olin [163]3 years ago
4 0

Answer:

C) the firm is experiencing a diminishing marginal rate of technical substitution.

Explanation:

Isoquant reflects factor combinations which give producer same output level. It is analogous to consumer's indifference curve, reflecting goods combinations giving same satisfaction level.

  • It is downward sloping as same quantity of a good can be produced by - one factor increase, other factor decrease & one factor decrease, other factor increase.
  • It is also concave i.e inwards bending towards origin, because of fallings slope. It implies that marginal rate of technical substitution (fall in one factor , replaced by gain in other factor) with same level of output i.e same isoquant - keeps on falling.

This concept is highlighted in the given statement : If a firm hires one worker and eliminates four units of capital, and hires one more worker and replaces three more units of capital, keeping output constant.  

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A _____ savings account pays interest and allows for a regular deposits and withdrawals
lisov135 [29]

Answer:

<em>Regular savings account </em>

Explanation:

<em>One requires to commit small amounts of income each month on a regular savings account.</em>

In exchange for providing your savings provider a fixed level of income every month, they normally pay you a higher rate of return than, for instance, if you invest a lump sum in a cash ISA or easy access account.

However, the best regular savings rates also exceed the prices on the longer fixed-rate offers offered.

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7 0
3 years ago
Use the midpoint method when applicable to calculate the price elasticity of demand.
Neko [114]

Answer:

Follows are the solution to the given points:

Explanation:

In point a:

This business of plastic containers is increasing its Lunchbox Product Signature price around $3.00 and $4.00.   The volumes produced consequently declined around 20,000 to 15,000.

\text{Price elasticity} =  \frac{\frac{15000-20000}{(\frac{15000+20000}{2})}}{\frac{4-3}{(4+\frac{3}{2})}}

                        =\frac{\frac{-5000}{(\frac{35000}{2})}}{\frac{1}{(\frac{7}{2})}}\\\\=\frac{\frac{-5000}{17500}}{\frac{1}{3.6}}\\\\=\frac{\frac{-50}{175}}{\frac{1}{3.6}}\\\\= \frac{-0.2857}{0.2857} \\\\ =-1

The price elasticity also becomes unitary

In point b:

U.S. economic theory states that the elasticity of fuel demand is 0.5 because prices would be less than 1 and so are non-elastic.

In point c:

The capital Metro agrees and add $2.00 to $2.21 also for bus fares. Consequently, with an average of 70,000 drivers a days to both a daily average 61,000 drivers, its passenger numbers who take the bus in Austin falls.

\text{Price elasticity} = \frac{\frac{61000-70000}{(61000+ \frac{70000}{2})}}{ \frac{2.21-2}{(2.21+\frac{2}{2})}}

                        = \frac{\frac{-9000}{(61000+ 35000)}}{ \frac{0.21}{(2.21+1)}} \\\\= \frac{\frac{-9000}{(96000)}}{ \frac{0.21}{(3.21)}} \\\\= \frac{\frac{-9}{(96)}}{ \frac{0.21}{(3.21)}} \\\\= \frac{-0.1374}{0.099} \\\\ = -1.38

The value being higher than 1 is elastic.

5 0
3 years ago
Marginal social cost is the marginal cost incurred by the entire society​ - by the producer and by everyone else on whom the cos
Airida [17]

Answer:

Marginal social cost is the sum of marginal private cost and marginal external cost

Explanation:

Marginal social cost is  the total cost society pays for the production of another unit or for taking further action in the economy.

​    

Marginal Social Cost= MPC+MEC

where MPC = Marginal private cost

MEC = Marginal external cost

A private cost of production is a cost that is borne by the producer of a good or service. on the other hand,  A marginal external cost is the cost of producing an additional unit of a good or service that falls on people other than the producer.

3 0
3 years ago
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AveGali [126]

Answer:

one principle which is against the BRUCE Scagel principle for training effort is Efficiency

Explanation:

one principle which is against the BRUCE Scagel principle for training effort is Efficiency

According to the Bruce duration of the training must be long enough to provide basic knowledge to the worker. Focus should be on one goal not on the various goal. Maximum number of worker get the benefit of successful training. The main thing that Bruce focused on his principle is the value of training. He focus training on the key area of the employee to get maximum benefit out of the training.

5 0
3 years ago
What type of asset is rental income?
Jobisdone [24]

Answer:

In most cases rental property should be reported as an investment asset. Since, the property most likely a duplex or triplex housing is used in your business to generate income it would be considered a business asset.

Explanation:

6 0
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