All categories

3 years ago

The shape of the production function reflects the law of diminishing marginal product of labor.a. Trueb. False

Business

1 answer:

Anna35 [415]3 years ago

5 0

Answer: True

Explanation:

Looking at the Production Function you will notice that Output increases at different rates to input added. First output increases at an increasing rate then at a constant rate then at a decreasing rate.

This shows the concept of the Law of Diminishing Marginal returns because as more input(labor) was added, at some point the output started increasing at a decreasing rate till it gets to a point where marginal returns will be negative.

The reason for this is that each worker is now working with less capital than before (assuming capital doe not change) and so will only produce less.

You might be interested in

Scientist estimate that sea level has risen about what over the past 100 years

pantera1 [17]

New research indicates that the ocean could rise in the next 100 years to a meter higher than the current sea level -- which is three times higher than predictions from the UN's Intergovernmental Panel on Climate Change,

4 0

3 years ago

Zack enters into a contract to buy Olivia’s home. Per the terms of the contract, Zack must put down a $10,000 earnest money depo

Nastasia [14]

Answer:

performance of a contract

Explanation:

When you enter a contract you can perform your part of the contract, not perform your part of the contract or partially perform your part of the contract. In legal terms, there is no such thing as over performance.

in this case, Zack performed his part of the contract. Him making a slightly higher deposit or getting the inspection done before the due date, will not alter the total consideration of the contract, e.g. selling price will remain unchanged and the house will be the same one.

4 0

3 years ago

NDS Industries is evaluating a project with an initial investment at Time 0 of $640,000. The present value of the levered cash f

RoseWind [281]

Answer: $67600

Explanation:

Using the flow-to-equity method of valuation, the amount borrowed will be calculated thus:

NPV = $157000

Add : Initial investment = $640000

Present value of cash inflow = $797000

Less : Present value of Levered cash flow = $729400

Amount borrowed = $67600

Therefore, the amount borrowed is $67600.

3 0

3 years ago

The most likely cause of a shift of a production possibilities frontier of an economy ab to cd is:_________

MaRussiya [10]

The cause of a shift of a production possibilities frontier of an economy ab to cd is unemployment.

If an economy keeps growing its capital stock/range of employees/generation/herbal resources, then over the years its manufacturing possibilities curve will: shift to the proper .e shift of the frontier from A to B was maximum in all likelihood due to unemployment

. The curve bows outwards due to the law of increasing opportunity fee, which states that the quantity of an amazing which must be sacrificed for every additional unit of any other suitable is extra than become sacrificed for the preceding unit.

production possibilities curve. a graph or financial model that shows the most combinations of products and offerings, any two categories of goods, that can be produced from a set quantity of assets.

Learn more about the economy here:brainly.com/question/1106682

#SPJ1

3 0

1 year ago

The market capitalization rate for Admiral Motors Company is 8%. Its expected ROE is 10% and its expected EPS is $5. The firm's

pashok25 [27]

Answer:

(A) 6%

(B) 20

Explanation:

The market capitalization rate for Admiral motors is 8%

= 8/100

= 0.08

The expected ROE is 10%

= 10/100

= 0.1

The expected EPS is $5

The Plowback ratio is 60%

= 60/100

= 0.6

(A) The growth rate can be calculated as follows

= Plowback ratio × ROE

= 0.6 × 0.1

= 0.06×100

= 6%

Hence the growth rate is 6%

(B) The P/E ratio can be calculated as follows

= 1-0.6/0.08-0.06

= 0.4/0.02

= 20

Hence the P/E ratio is 20

5 0

3 years ago