The law of diminishing marginal returns holds for a situation in which some inputs are variable and some inputs are fixed.
<h3>What is the law of
diminishing marginal returns?</h3>
The law of diminishing marginal returns states that after some optimal level of capacity is reached in a production process, an additional factor of production would result in a lessening of output (quantity of production).
In this context, we can infer and logically deduce that the law of diminishing marginal returns would only hold for an economic situation in which some inputs are variable and some inputs are fixed.
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Answer:
the perpetuity will pay the student 166.36 dollar per years
Explanation:
First, we solve for the amount of the original investment after 5 years:
Principal 1,642.00
time 5.00
rate 0.06200
Amount 2,218.17
<u>Then, this goes into a perpetual annuity at 7.5%</u>
2,218.17 x 0.075 = 166.3630983 = 166.36
the perpetuity will pay the student 166.36 dollar per years
Increase output!!!!
little late but ...
Answer:
PV= $13,611.66
Explanation:
Giving the following information:
Future Value (FV)= $20,000
Number of periods (n)= 5 years
Interest rate (i)= 8%
<u>To calculate the present value, we need to use the following formula:</u>
FV= PV*(1+i)^n
Isolating PV:
PV= FV/(1+i)^n
PV= 20,000 / (1.08^5)
PV= $13,611.66
