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

When the central bank acts in a way that causes the money supply to increase while aggregate demand remains unchanged, it is:?

Rudik [331]

Answer:

It is "following an expansionary monetary policy".

Explanation:

When the central bank uses expansionary monetary policy, money supply increases and the interest rates decreases, this will lead to no change in aggregate demand. It also affects the value of the currency and that is lowering its value but there is improvement in growth of domestic economy.

5 0

3 years ago

Tina's mother and father pay her car insurance as long as she makes good grades. This is an example of which economic concept? A

skelet666 [1.2K]

<span>Tina's mother and father pay her car insurance as long as she makes good grades. This is an example of which economic concept? Positive incentive. A positive incentive is a value that is given during the performance of a regular behavior. As long as Tina does what she is supposed to her parent's will continue to pay her car insurance. There is a reward for her doing what she </span>should be doing on her own which is motivating her to continue to do it.

4 0

3 years ago

Read 2 more answers

On July 1, 2021, Markwell Company acquired equipment. Markwell paid $185,000 in cash on July 1, 2021, and signed a $740,000 noni

Alenkasestr [34]

Answer:

c. Debit: Discount on notes payable, $41,884.

Explanation:

The journal entry is shown below:

Equipment $883,116

Discount on Notes payable $41,884 ($740,000 - $698,116)

To Notes payable $740,000

To Cash $185,000

(Being the amount paid in cash and note payable is recorded)

Working note

= Note payable amount × PVF factor at 6% for one year

= $740,000 × 0.94340

= $698,116

For recording this we debited the equipment as it increased the assets and discount is always debited while the note payable and cash is credited as it increased the liabilities and reduced the assets

7 0

3 years ago

Mengapa Dasar pemerintahan akan menentukan kejayaan sesebuah negara.

Lady bird [3.3K]

Answer:

The old man was stuck in the rare chance

6 0

3 years ago

Computing first-year depreciation and book value

MArishka [77]

Answer:

1. Compute Austin Airlines' first-year depreciation expense on the plane using the following methods:

a. Straight-line

depreciation expense for first year = ($33,500,000 - $5,500,000) / 5 = $5,600,000 per year

b. Units-of-production

depreciation per mile = ($33,500,000 - $5,500,000) / 4,000,000 = $7 per mile

depreciation expense for first year = $7 x 1,100,000 = $7,700,000

c. Double-declining-balance

depreciation expense for first year = 2 x 1/5 x $33,500,000 = $13,400,000

2. Show the airplane's book value at the end of the first year for all three methods.

a. Straight-line

book value at end of first year = $27,900,000

b. Units-of-production

book value at end of first year = $25,800,000

c. Double-declining-balance

book value at end of first year = $20,100,000

Explanation:

Purchase cost = $33,500,000

useful life of 5 years (or 4,000,000 miles) and residual value of $5,500,000

expected use during first year of 1,100,000 miles

4 0

3 years ago