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lara [203]
3 years ago
5

The marginal productivity theory of resource demand suggests that those resources whose productivity levels are high will end up

getting a higher share of the economy's income.
a) true
b) false
Business
1 answer:
Travka [436]3 years ago
4 0

Answer: a) true

Explanation:

  • Marginal product is a term which is used to represent the raise in amount of production by adding of one unit of factor of production [Taking other factors constant.]

According to marginal productivity theory of resource,

Under a perfect competition, if there is an increase in the marginal productivity of one resource(while taking price level constant) then that resource will be paid a higher wage rate.

This implies that a higher share of the economy's income.

Hence, the given statement is "True".

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Vilas Company is considering a capital investment of $190,100 in additional productive facilities. The new machinery is expected
zheka24 [161]

Answer:

9.49%

Explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Cash flow in year 0 =  $190,100

cash flow each year from year 1 to 5 =  $49,500

IRR = 9.49%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

6 0
3 years ago
In the case of oligopolistic markets, self-interest makes cooperation difficult and it often leads to an undesirable outcome for
Tanya [424]

Answer: True

Explanation:

An Oligopolistic market is one where the suppliers are very few in number. Cooperation is indeed difficult in such markets as they are motivated by self-interest to try to make more profits than their competitors.

This usually leads to an undesirable outcome. For instance, if two oligopolistic firms agree on a price to sell goods, one of them might decide to sell at a lower price in order to gain more market share. This will cause the other firm to reduce its prices as well which means that both companies would be worse off than when they started.

7 0
3 years ago
Bank of the Atlantic has liabilities of $4 million with an average maturity of two years paying interest rates of 4.0 percent an
Setler [38]

Answer:

the bank net interest income for the current year is $140,000

Explanation:

The computation of the bank net interest income for the current year is shown below:

= (Interest earning assets ×  Interest rate earned)-(Interest bearing liabilities ×  Interest rate rate)

= $5,000,000 × 6% - $4,000,000 × 4%

=$300,000 - $160,000

= $140,000

Hence, the bank net interest income for the current year is $140,000

8 0
3 years ago
What is one way governments try to encourage growth?.
Jlenok [28]

Governments use spending and taxing powers to promote stable and sustainable growth.

<h3>What is encourage growth?</h3>

To make more effective or to increase the value of something. improve.

Vaccinations, exclusive breastfeeding, and prompt medical attention when ill are all factors in a child's healthy growth and development. For young children to explore and learn, it's crucial to have access to clean air, water, and sanitary facilities, as well as safe spaces for play and recreation.

Variations in the GDP and other macroeconomics indices can be used to detect a business cycle. The business cycle has four distinct phases: expansion, peak, contraction, and trough.

The peak, the recession, the trough, and the expansion are the four stages of the business cycle. The lengths of business cycles vary.

The term "classical cycle" describes ups and downs in overall productivity. The production growth rate's variations are what the growth cycle is concerned with.

To learn more about encourage growth refer to:

brainly.com/question/1341373

#SPJ4

7 0
1 year ago
weston mines has a cost of equity of 20.8 percent, a pretax cost of debt of 9.4 percent, and a wacc of 17.1 percent. ignore taxe
jonny [76]

If weston mines has a cost of equity of 20.8 percent, a pretax cost of debt of 9.4 percent, and a wacc of 17.1 percent. ignore taxes. the equity-asset ratio is:0.48.

<h3>How to find the equity -asset ratio?</h3>

Given data:

Cost of equity = 20.8%

Pretax cost of debt = 9.4%

Wacc =17.1%

Hence,

Equity -asset ratio:

0.208=0.171 + [(0.171 - 0.094) ×E/A]

0.208 -0.171 = [(0.171 - 0.094) ×E/A]

0.037=  0.077 ×E/A

E/A = 0.037/0.077

E/A =0.48

Therefore the equity- asset ratio is 0.48.

Learn more about equity-asset ratio here:brainly.com/question/28138260

#SPJ1

3 0
1 year ago
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