All categories

3 years ago

Ceteris paribus, the law of diminishing returns states that beyond some point, the:________.

Business

1 answer:

DiKsa [7]3 years ago

7 0

Answer:

a. Marginal product of a factor of production diminishes as more of it is employed with a given quantity of other inputs

Explanation:

The law of diminishing return states that in applying a successive unit of variable cost to a fixed cost, the return per unit of variable cost will eventually diminish or fall.

What the above means is that at a certain point, the continuous addition of land, labor , capital and entrepreneur will bring about a fall or reduction in output.

An example is where a company operate at a maximum level, there would be a fall in output even when additional workers are employed given that the factors of production are constant.

You might be interested in

A company that produces running shoes specifically for customers with low arches, utilizes a market-orientation approach and lik

masya89 [10]

Answer: The correct answer is "c. employs customer relationship management strategies.".

Explanation: Customer relationship management strategies involve a management model of the entire organization, based on customer satisfaction (or market orientation according to other authors). It is an approach to manage the interaction of a company with its current and potential customers.

4 0

3 years ago

If the fed expands the money supply by $1 trillion, what will happen in the money market?

natta225 [31]

<span>If the Fed expands the money supply by $1 trillion, the money market will be (letter C.) the equilibrium interest rate will fall, and more money will exchanged in equilibrium. It is because people will have more money to spend. Some would choose to use this money to buy goods and services while other opt to put their money in banks which may lead to lower interest rates to persuade people in borrowing. </span>

4 0

3 years ago

Statement Single-price Monopoly Perfect Price Discrimination Total surplus is not maximized. There is no deadweight loss associa

Bond [772]

Answer:

Under Single Price Monopoly, absolute surplus is not maximized.

The profit-maximizing efficiency in Perfect Price Discrimination is correlated with no extra weight loss

Barefeet generates quantity less than the productive quantity of boots in single-price Monopoly.

Explanation:

A single-price monopoly is a corporation, who must sell every unit of its production to all its consumers for the same rate. so there is no way to maximize surplus.

A price-discriminating monopoly is a corporation able to sell various units of a product or service at various price points. Therefore, by adjusting their prices they have opportunities to increase their income.

6 0

3 years ago

On January 1, 2020, Cheyenne Company purchased 40% of Santos Corporation 465,000 outstanding shares of common stock at a total c

d1i1m1o1n [39]

Solution :

The following journal entry will be prepared to record the transactions

Date General Journal Debt($) Credit($)

Jan 1 Investment in Cheyenne Co. 2,418,000

(465,000 x 40% x $13)

Cash 2,418,000

Oct. 25 Cash (465,000 x 40% x $0.4) 74,400

Investment in Cheyenne Co. 74,400

Dec 31 Investment in Cheyenne Co. 373,600

($934,000 x 40%)

Equity income in Cheyenne Co. 373,600

4 0

3 years ago

In supplying private-label footwear to chain retailers, the sizes of a company's margins over direct costs should be viewed as

Nataliya [291]

The correct answer is this one: "how much private-label sales added to the company's pretax profits, assuming that the company's margins on branded Footwear were sufficient to cover all administrative expenses and all interest costs," that is how <span>the sizes of a company's margins over direct costs should be viewed as.</span>

6 0

3 years ago