Answer:
A) right; increase
Explanation:
In the case of the closed economy when the marginal product of capital increased so it also increased the investment due to which the shifting of the investment curve is rightward and this will result in increase in the real interest rate
So as per the given situation, the option a is correct
Answer:
The EOQ is 642
The reorder point is 2,699
Explanation:
In order to calculate the EOQ we would have to calculate the following formila:
EOQ=√2DS/H
According to the given data we have the following:
D = 55,000
S = 21
H=40%*purchase cost
H=0.4*14 = 5.6
Therefore, EOQ=√(2*55,000*21)/5.6
EOQ=642
To calculate the reorder point If a service level of 98% is desired during the reorder interval, we would have to use the following formula:
reorder point=dL+z√σ∧2dL+σ∧2Ld∧2
reorder point=(7*205.22)+√(2.05*√(5∧2*7)+(3∧2*205.22∧2)
reorder point=2,699
Answer:
Therefore, we can conclude that:
the marginal product of the third worker is 9.
Explanation:
a) Data and Calculations:
The productivity of first worker = 24
Increase in productivity from second worker = 18
Increase in productivity from third worker = 9
b) The marginal product or productivity of a worker shows the increase in productivity as a result of hiring an additional worker. To obtain the marginal product, we first calculate the change in output as a result of the change in the input of the particular resource. Then, this change in output is the marginal product.
Answer:
$54,042.77
Explanation:
For computing the amount need to have in your bank today we need to apply the present value formula i.e to be shown in the attachment
Given that,
Future value = $0
Rate of interest = 0.76%
NPER = 4 quarters × 4 = $3,600
PMT = $3,600
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the present value is $54,042.77
Answer: Option D
Explanation: In simple words, depreciation refers to the reduction in value of an asset which occurs due to the normal wear and tear of that asset over a passage of time.
Depreciation is calculated by dividing the difference of initial value and estimated residual value with the expected useful life.
Hence, from the above we can conclude that the correct option is D .
