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2 years ago

Some economies are able to maintain high growth rates despite diminishing returns to capital by using

Business

1 answer:

Anarel [89]2 years ago

6 0

Answer:

The answer is: A) better or enhanced technology, along with accumulating capital; these economies are growing because technology, unlike capital, is subject to increasing returns.

Explanation:

Capital ,as a factor of production, is limited by the "Law of Diminishing Marginal Returns ". This concept states that at certain point, using an additional factor of production will result in a smaller increase of the total output.

For example, if you have a machine in a factory and you increase the other factors of production (labor and materials), the output will be limited by the total possible output of the machine. Once it works 24 hours a day, seven days a week, and 52 weeks per year, it will reach the maximum output.

The only way you can bypass this law is by the introduction of new and better technologies, e.g. the only way to increase output in the factory is to get a bigger or better machine.

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Betty and Barbara own a business called Betsy. They each invest $30,000 into their business. The concept of owner’s investment i

dem82 [27]

Answer:

Explanation:

7 0

2 years ago

Kim’s flowers decided to borrow $26,000 from the bank and use the proceeds to purchase a new delivery vehicle. How should they c

Neko [114]

Based on the fact that Kim's flowers borrowed the money and used it to buy a new delivery vehicle, this business activity should be categorized as both a financing activity and an investing activity.

<h3>What should they classify this business activity as?</h3>

Because Kim's Flowers got the money as a loan, it would be recorded as an inflow for financial activities.

They then used it to purchase a delivery vehicle which is an investment and a capital asset so this will count as an investment activity.

Find out more on classifying business activities at brainly.com/question/14790406

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8 0

1 year ago

"An expenditure made in connection with a machine being used by a company to produce inventory should be expensed immediately if

Ipatiy [6.2K]

Answer:

True

Explanation:

Efficiency related expenditures are more closely with day-to-day servicing of the machine. Such an expenditure just maintains machine's capacity to save the future economic benefits rather than improve its capacity.

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3 years ago

Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own;

valentinak56 [21]

A)Degree of operating leverage=Contribution/EBIT

=6400,000/2140000=2.99.

B) Degree of operating leverage=Contribution/EBIT

=5600,000/1340000=4.18

C) Degree of operating leverage=Contribution/EBIT

=7600,000/1015000=7.49

One conclusion that companies can draw from examining operational leverage is that companies that minimize fixed costs can increase profits without changing selling prices, contribution margins, or unit sales.

The Operating Leverage formula is used to calculate a company's break-even point, helping to set a reasonable selling price that covers all costs and produces a profit. This gives you insight into how well your company is using fixed-cost items such as inventory and machinery to make a profit. The more profit a company can extract from the same amount of fixed assets, the higher its operational leverage.

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brainly.com/question/24278932

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1 year ago

Maurice and Stanley's train store has grown to the point that they need more capital to expand the current location and to open

harina [27]

Answer:

b. sole proprietorship.

Explanation:

A sole proprietorship is a single business entity that is responsible for all profits and losses and may use a sole name or a business name as a private company is known for its flexibility and thus does not need to take large loans from the government.

Have an advantage of less administrative paperwork and record-keeping than a corporation, have less risk of being stolen by investors.

6 0

2 years ago