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Answer:
C. the greater is the marginal productivity of labor relative to that of capital
Explanation:
An isoquant is a curve that shows all the combinations of inputs that yield the same level of output.
When adding one factor holding the other factor constant inevitably, leads to lower output levels, the isoquant must become steeper, as more capital is added instead of labour, and flatter when labour is added instead of capital. Returns to capital even decline.
Answer: Proceeds transaction
Explanation:
In a proceeds transaction, the broker is involved in two related transactions which are the selling of one stock and the buying of another.
Proceed transactions involve a customer asking their broker to sell their stock and then use the proceeds gained from that sale to buy another stock which is what the customer did when he directed his broker to sell ABCD stock and use the proceeds to buy XPDQ stock.
Answer: A. Present; B. Taken; C. Future; D. Present
Explanation:
The present value of a future amount of money is the amount that, if invested today, will grow to be as large as that present amount when the interest that it will earn is taken into account.
The calculation that we use to convert a future amount of money to its present value is called discounting.
Answer:
$3,860
Explanation:
<u>Value of stock at the end of Firm T:</u>
Firm T has stock of 20 tires at the end of the year
The cost price is $28 per tire
Value = Closing stock * Cost price of each tIres
Value = 20 * $28
Value = $560
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<u>Value of stock at the end of Firm B:</u>
Firm B has stock of 10 bicycles at the end of the year
The cost price is $330 each
Value = Closing stock * Cost price of each bicycle
Value = 10 * $330
Value = $3,300
Value of the inventory investment = Value of stock at the end of Firm T + Value of stock at the end of Firm B
Value of the inventory investment = $560 + $3,300
Value of the inventory investment = $3,860
