Answer:
In 2022, Rigs-by gross profit=$682,500
Explanation:
Profit=Price at which land is sold- Actual price of land
Profit=$5,000,000- $3,500,000
Profit=$1,500,000
Gross Profit=Profit/Price at which land is sold
Gross Profit=$1,500,000/$5,000,000
Gross Profit=0.3=30%
In 2022, Rigs-by gross profit=
In 2022, Rigs-by gross profit=
In 2022, Rigs-by gross profit=$682,500
Answer: Option (a) is correct.
Explanation:
Figure attached with this answer shows the two curves, namely, average product curve and marginal product curve.
Marginal product refers to the change in the total output divided by the change in the quantity of inputs used.
Average product is calculated by dividing the total output produced with the quantity of inputs or factors of production used.
The relationship between marginal product and average product is explained by three phases:
(1) Average product is rising,
Marginal product is greater than the average product.
(2) Average product is maximum,
Marginal product is equal to average product.
(3) Average product is falling because of diminishing marginal utility,
Marginal product is less than the average product.
