What is discretionary spending within a budget?

Ray's Pizzeria is considering the addition of a 5th worker if this increases profit. Pizza sales increased from 300 per day to 3

Anika [276]

Answer:

60 pizzas

40 pizzas

Explanation:

Marginal product measures the change in output as a result of a change in input by one unit

Marginal product = change in output / change in input

Marginal product for the 4th worker

Change in output = 360 - 300 = 60 pizzas

Change in input = 4 - 3 = 1 worker

Marginal product = 60 / 1 = 60

Marginal product for the 5th worker

Change in output = 400 - 360 = 40 pizzas

Change in input = 5 - 4 = 1

Marginal product = 40 / 1 = 40

It can be seen that marginal product decreased from 60 to 40 when the 5th worker was added. This illustrates diminishing marginal returns.

The law of diminishing returns says as more units of a variable input is added to a fixed income of production, output might increase at a point but after some time total output would increase at a decreasing rate and marginal product would be decreasing.

6 0

3 years ago

A policy maker is unsure of the true marginal damages associated with a good, but they know that the marginal externality is con

katovenus [111]

Answer: True

Explanation:

Marginal externality is constant. However, it may not be calculated with accuracy. Hence, there's need for estimates at reasonable levels.

Hence, the policymaker's estimate of $35/ unit is reasonable and within the acceptable range of between $10 and $50/unit. Also, the tax charge raises social welfare compared to no tax at all.

6 0

3 years ago

Bonds are a far more important source of financing than are stocks B. Financial intermediaries such as banks are the least impor

Anna71 [15]

Answer:

Bonds are a far more important source of financing than are stocks

Explanation:

There is so much of risk associated with the issue of stock. Though it is essential for any business to issue some stock, but bonds are always favorable as they have a defined maturity, defined amount associated, and defined interest payment.

There is no direct payment of interest in bonds but the expense is to be recorded in books as per the matching and accrual principle.

The discounted value of interest to be paid on maturity is recorded.

Further, there is a tax benefit on bond payments.

5 0

4 years ago

ACME Inc. has decided on a 10for1 reverse stock split. If the firm currently has 40,000,000 shares outstanding, how many share

kondor19780726 [428]

Answer:

$4,000,000 Shares

Explanation:

Calculation for how many shares will be outstanding after the stock split

Using this formula

Outstanding Shares after stock split =Shares outstanding ÷Reverse stock split

Let plug in the formula

Outstanding Shares after stock split =$40,000,000÷10

Outstanding Shares after stock split =$4,000,000 Shares

Therefore the amount of shares that will be outstanding after the stock split will be $4,000,000

8 0

3 years ago

nikolaos is an ordained minister. he moved to indianapolis and lives in the nearby furnished parsonage, which is 1,500 square fe

siniylev [52]

Option D. The way that Nikolaos would be able to determine for the parsonage of the Indianapolis would be: Consult an Indianapolis realtor for a documented quote with comparable listings for the house.

<h3>What is meant by parsonage?</h3>

Old French personage and medieval Latin personagium, both of which imply "home for a person," are the origins of the word "parsonage." A house in the early church was frequently not much more than a priest's place to sleep.

A clergy house is where one or more priests or other religious leaders currently live or previously lived. Such homes may be referred to as manse, parsonage, rectory, or vicarage, among other names.

A recent sale of a property in your neighborhood that is comparable to yours in terms of location, size, condition, and features is known as a "comp," short for "comparable sale."

Comparable (similar) homes have to have equivalent market values, and thus comparable assessed values. Comparing the assessment of your home to the assessments of other comparable homes is one approach to determine whether it has been done fairly or uniformly.