If the marginal product for that employee is greater than for the previous employee hired, it must be that there are gains from specialization
<h3>
What is marginal product ?</h3>
- The marginal product or marginal physical productivity of an input (factor of production) in economics, and particularly neoclassical economics, is the change in output that results from using one more unit of a specific input (for example, the change in output when a firm's labor is increased from five to six units), assuming that the quantities of other inputs are kept constant.
- The marginal product is the mathematical derivative of the production function with respect to that input if the output and the input are infinitely divisible, in which case the marginal "units" are infinitesimal.
- When more of one input, such as labor, is used while maintaining a constant level of the other input, such as capital, the marginal product initially rises according to the "rule" of declining marginal returns.
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Answer:
<u>A and B are correct</u>
Explanation :
- The TVM concept is based on the value of money which is today may change with time as a rise or fall in prices thus this explains why the interest rates are paid and calculated on the basis of the present values that may change such as future sum of money of cash flows, can get discontinued at the discounted rates.
- Future values can be ascertained based on the present value of the product/assert. Thus the interest rates and inflation rates change as the risks and the consumer's needs will always be present and have existed earlier.
- It's calculated by the present value and future value of money multiplied by the interest rate and the total number of years. I.e
- FV = PV x [ 1 + (i / n) ] (n x t)
If the tax system in the US is progressive, then those with lower income will pay proportionally less than those with higher income as the latter will have a higher tax rate but in fact the rich people usually have or find a lot of tax loopholes to reduce their taxes so may still not be paying a fair share of their taxes compared to the poor people who don't have these loopholes.
Answer:
1. The major issue in the process is the lack of communication between different parties. The process being manually driven, might affect the customer satisfaction and lead to lost sales. The changes which need to be made is to make available the price information of different items at once, when the customer comes in to place an order. This can be made possible by asking the suppliers to send the updated sheet every morning before the day's business begins. It will be better if the entire uncatalogued as well as the price sheet is in electronic form, which can be updated immediately, as soon as the information is received from supplier in the morning. One better alternative is to connect the suppliers through an ERP so that their price might reflect at the company's end as soon as it is updated, It will reduce much hassle and mistakes that might creep in due to manual process.
2. a. The number of customers leaving per day / week to competitors due to inefficiency.
b. Total average delay in customer's order.
c. Customer satisfaction rating of the process as this will give the overall picture of customer's opinion about the company.
3. The information system might enable the suppliers to update their information each day which can then be used by the company reps to find out the right price of an item and enable him /her to provide the estimate immediately, leading to greater customer satisfaction, reducing the lost sales and eliminating the chances of a wrong quote being given.
Answer:
contract terms incentivize one party to take on more risk because they don't carry the full cost of the risk
Explanation:
A moral hazard can be understood as the concept that a participant that is sheltered from danger in some manner will behave significantly than if they were not.
Every day, we see moral hazard in the form of established academics who remain apathetic presenters, individuals who have burglary insurance who are less attentive about where they parked, compensated workers who take long vacations, and etc.
Thus, from the above we can conclude that the correct option is C.
