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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.

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ou currently own 10 percent of the 3.0 million outstanding shares of Webster Mills. The company has just announced a rights offe

REY [17]

Answer: 9.09% ownership

Explanation:

Your current ownership of the shares in Webster Mills is 10% of 3 million.

That means that you own,

= 10% * 3 million

= 300,000 shares.

The new offering that the company is doing equates one right to each share of existing stock and is expected to raise $12 million in new financing at a cost of $40. The goal is to find out how many new shares this will add.

= 12,000,000/40

= 300,000 shares

This means that 300,000 new shares will be added.

There are already 3,000,000 shares outstanding and now there are 300,00 extra which would bring the total to,

= 3,000,000 + 300,000

= 3,300,000 outstanding shares.

Since you sold your rights then you still have shares but now your percentage of ownership will change because of the increase in outstanding shares.

Your ownership percentage is now,

= 300,000 shares (that you own) / 3,300,000 (new outstanding balance)

= 0.0909

= 9.09%

Your new ownership position is that you own 9.09% of Webster Mills.

8 0

3 years ago

Explain in detail two engagments. ASAP

dexar [7]

Answer:

easy a

Explanation:

easy a

3 0

3 years ago

Aerotron Electronics is considering the purchase of a water filtration system to assist in circuit board manufacturing. The syst

tino4ka555 [31]

Answer:

Explanation:

Annual worth: this will be the annuity payment equivalent to all the cashflow of the investment. Thus the PMT of the net present value

Cash Investment at F0: 230,000/2 = 115,000

present value of 7,500 salvage value:

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 7,500.00

time 7 years

MARR: 10% = 0.1

$\frac{7500}{(1 + 0.1)^{7} } = PV$

PV 3,848.69

Then, we need to calculate the present value of the loan discounted at 10%

half the investment is finance: 230,000 / 2 = 115,000

Then, this capitalize 2 year at 8% before the first payment:

$Principal \: (1+ r)^{time} = Amount$

Principal 115,000.00

time 2 year

MARR: 10% = 0.08000

$115000 \: (1+ 0.08)^{2} = Amount$

Amount 134,136.00

Now we need to discount this loan at 10% which is our rate of return:

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 134,136.00

time 2.00

MARR: 10% = 0.1

$\frac{134136}{(1 + 0.1)^{2} } = PV$

PV 110,856.20

Finally: we add this values to get the resent worth:

115,000 + 110,856.20 - 3,848.69 = 222,007.51

Last step, we calculate the PMT of the present worth:

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV 222,007.51

time 7 years

MARR: 10% = 0.1

$222007.51 \div \frac{1-(1+0.1)^{-7} }{0.1} = C\\$

C $ 45,601.564

6 0

3 years ago

An A-B design does not demonstrate a functional relationship between the treatment and the target behavior because there is no:

balandron [24]

Answer: REPLICATION

Explanation:An A-B design is a single case or a single subject design that deals with the study and analysis of both applied Behavior and Behaviors which concerns Human and non Human subjects. This type of design does not involve repetition of treatments which means it is a one case scenario, A-B design is a two phase design made up of a baseline known as ("A" phase) without change and a ("B" phase) known as a treatment phase. If during the experiment their is a change,it means the it means the treatment has an effect.

5 0

3 years ago

"You want to invest your savings of $20,000 in government securities for the next 2 years. Currently, you can invest either in a

JulijaS [17]

Answer:

Explanation:

In the former case that is investment in security that pays interest of 8% per year for the next 2 years , there is provision of fixed interest rate . That means one can be assured of interest rate of 8 % for two years but he can not get benefit of market fluctuation if interest rate if it rises above 8 % after one year .

In case of investment in security that matures in 1 year but pays only 6% interest , one can take the benefit of market fluctuation if interest rate rises above 8 % . So if there is likelihood that interest rate can rise above 8 % in future , one should invest in 6% security for one year and reinvest it after one year , in the same security or in other security which fetches higher rate of interest .

Apart from that , if there is a contingent liability of paying after one year , one can not go in for 2 year security as it will have to break prematurely , that will result in loss of interest .

So due to situation described above, one should prefer investment in one year security .

6 0

3 years ago