Answer:
Marginal analysis compares ____________ and ____________ to determine the optimal outcome or choice.
d) marginal benefits, marginal costs
Explanation:
Marginal analysis concentrates on the evaluation of the additional benefits of an activity compared to the additional costs. Marginal analysis is a decision-making tool that maximizes the potential profits that arise from changes in revenues and costs as a result of some changes in the activity levels. The analysis is done to ensure that the company does not make a decision based on sunk costs or fixed costs, which do not change as a result of a decision.
You are not maximizing utility, because the marginal utility per dollar spent renting movies is not equal to the marginal utility per dollar spent on CDs. We will maximizing utility when the consumers decide to allocate their money incomes so that the last dollar spent on each product purchased yields the same amount of extra marginal utility.
Answer:
If a bank lends $10 for every $1 of capital reserves it will have a capital leverage ratio of 1/10 = 10% Globally it is required that this ratio is at least 3%, according to the Basel III Basel III Basel III is a regulatory framework designed to strengthen bank capital requirements while also mitigating risk.
Explanation:
hope this helps
Answer:
Value Added = Value of Output - Intermediate Consumption = Final Goods . Value
Explanation:
This can be explained with an example:
A produces flour & sells it to Grocer for Rs 100. Grocer produces Wheat & sells it to Baker for Rs 150. Baker produces bread & sells it to Consumers for Rs 200.
Value of Final Product (Used by end consumers) i.e Bread = Rs 200.
However if considering total Value Of Output including all value added at each stage = 100 + 150 + 200 = 450. This is Overestimated value of Final product Bread, because of 'Double Counting' - Grocer's wheat includes the intermediate good (good purchased for further resale/reprocessing) value of flour and Baker's bread includes value of Wheat & flour intermediate products both.
This problem can be solved by: Calculating Value Added (by subtracting intermediate consumption) at each stage & then summing it to get the Final good value.
In this case: Farmer's Value Added = VO - IC = Flour Value - 0 = 100 .
Grocer's Value Added = VO - IC = Wheat - Flour Value = 150 - 100 = 50
Baker's Value Added = VO - IC = Bread - Wheat Value = 200 - 150 = 50
Adding value added by all these 3 we get , 150 + 50 + 50 = 200 i.e equal to final good bread value 200.
