Answer: a) 1
b) yes marginal rate of substitution is less than the relative price
c) 2.00
Explanation:
a) Raul’s marginal rate of substitution is 1 because he is only willing to trade 1 cal card for 1 additional Nolan card
b) Raul’s marginal rate of substitution is Mc/Mn = 1 However, the relative price of a Cal Ripken card is Pc/Pn = $24/$12 = 2.00. Since the marginal rate of substitution is less than the relative price, Raul can make himself better off by selling 1 Cal card and buying Nolan cards.
c) His marginal rate of substitution must be equal to the relative price; the relative price rule holds that says that Mc/Mn = Pc/Pn. From b above we know that the relative price is 2.00, Raul's marginal rate of substitution must also be 2.00.
The thing that would interest him the most and is an advantage is that if one partner were to make a mistake, he would not be held accountable for it. Unlike the general partnership where everyone gets equal blame for the downfall of a company, in limited liability it is known what falls under whose jurisdiction and if someone causes the company to go bankrupt, the ones whose fault it's not can't get sued.
Answer:
80
Explanation:
Given the Solow Formula Y = 
in the question, we have:
Capital K = 64
Labors L = 100
Substituting the number for K and L into the equation, we have:
Y = 8 * 10
Y = 80
Please Note:
Country B's production function is Y = F(K,L) = K0.5 L0.5 is not correctly stated as the real Solow Model using equation format in the question. This has therefore been done under the explanation above and now correctly stated as Y = .
Answer:
Dr. Lease asset office equipment $15,499
Cr. Lease Liability $15,499
Explanation:
A capital lease is a lease between two parties in which a party transfer leases asset to in exchange of lease payments.
To make a lease finance lease following criteria must be fulfilled.
- The asset will be transferred to lessee at the end of lease period
- Agreement must contain bargain purchase option
- Lease period must be 75% or more of useful life of asset
- Value of lease must be equal or more than the market value of asset
The answer should be A. it’s the only one that would make sense
