All categories

3 years ago

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

Business

1 answer:

Anarel [89]3 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.

You might be interested in

If a firm produces a good and then adds it to its inventory rather than selling it, for the purposes of GDP accounting the firm

fenix001 [56]

Answer:

The statement is true.

Explanation:

Investment expenditure refers to the expenses incurred on account of creating capital assets.

If a good is produced but is left unsold or not used in the production process, then, they result in increased inventory, which is considered as an investment by the firm.

For the purpose of GDP accounting, unsold goods in inventory are treated as purchased by the firm from itself. As such, they form a part of investment expenditure in the accounting period.

8 0

3 years ago

If you were told that your credit score was 700, how would you judge that number?

pav-90 [236]

No thats considered a desent score. Keep up the good work

4 0

3 years ago

In order to assess whether viewpoints on decriminalization of marijuana for medical purposes change with age, four groups of par

aliina [53]

There needs to be more criteria than just age. People of all ages smoke so that should have been established beforehand when choosing. More background is needed like culture and income level and race so that one set criteria can be established as deciding factor in opinion difference

3 0

3 years ago

Annual production and sales level of Product A1 is 9,280 units, and the annual production and sales level of Product B2 is 23,11

xxTIMURxx [149]

Answer:

Overhead per unit of Product B2 = $4.46

Explanation:

We know,

Allocation overhead to product line under A B C costing = Total overhead cost of specific product line/total number of products sold.

For each activity, the allocated overhead cost to product B2 = Total budgeted cost × [Product B2/(Product A1 + Product B2 of that activity)]

Activity 1 allocated to Product B2 line: $56,000 × 5,600/7,600 = $41,263

Activity 2 allocated to Product B2 line: $71,000 × 5,560/8,600 = $45,902

Activity 3 allocated to Product B2 line: $96,000 × 1,600/9,600 = $16,000

Total overhead allocated to Product B2 = $103,165

Overhead per unit of Product B2: $103,165/23,110 = $4.46

5 0

3 years ago

The amount of inspection needed depends on ________ and ________. the cost of the item being inspected; the use of the item bein

Anna [14]

Answer:

The correct answer is letter "D": the costs of inspection; the costs of passing on defective items.

Explanation:

It is said that as long as a business target to develop its quality control frequently, the lesser that company will depend on inspection. Inspection is a critical assessment of materials, products or structures that require evaluating, testing and measuring. Inspectors take measurements and make comparisons. The amount of inspection needed directly relies on the cost of the inspection and the costs of passing on defective items.

6 0

3 years ago