Answer: d. the production function is unrelated to the marginal product.
Explanation:
production function helps show the relationship between the quantity of inputs used in producing a goods or service and the quantity of output it produces. Example; a bag of seeds produces 5 bushels of seeds.
While marginal output is an increase in the output of the product, when input is when input is constant.
In this case production is in to marginal product.
Answer:
The correct answer is letter "A": True.
Explanation:
Managers are in constant search of maximizing profits and minimizing costs. While talking about larger entities where suppliers take a key role for the business, high-rank executives look for different entities from where their supplies can be obtained without affecting the quality of their output but minimizing the expenses of the firm. These activities are considered inherent for the business.
Answer:
E
Explanation:
Dividends thereafter will be lower
Answer:
C. Trading Securities
Explanation:
Trading securities refer to those securities which are purchased not with the intention of holding them till maturity, but to realize the gains arising as a consequence of short term price movements.
Bonds refer to debt instruments issued by the borrower for raising long term finance whereby the borrower promised to pay fixed coupon rate of interest on timely basis and principal repayment upon redemption.
In the given case, bonds purchased with the intention of selling in the near future with an objective to benefit from short term price movements represent trading securities. The benefit would be in the form of short term capital appreciation.
Households would provide factors of production to firms.
- The circular flow demonstrates the movement of money in the economy.
- The two-sector model of circular flow comprises households and firms.
- Money first flows from producers to households in return for production services in the form of wages.
- Finally, return to producers back in the form of payment for the purchase or expenditure made by households.
<h2>What do you mean by circular flow of money?</h2>
- The circular flow model demonstrates how money moves through society.
- Money flows from producers to workers as wages and flows back to producers as payment for products.
- In short, an economy is an endless circular flow of money.
<h2>What are the two types of circular flow?</h2>
There are two types of circular flow:
- Real flow: The term real flow means the flow of factor services from households to firms.
- Similarly, the flow of goods and services from firms to households.
- Money flow: The money flow refers to the flow of factor payments from firms to households for factor services.
Learn more about the circular flow of money here:
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