In order to produce a new product, a firm must lease equipment at a cost of $100,000 per year. The managers feel that they can s
1 answer:
You might be interested in
Answer:
correct option is A. True
Explanation:
given data
economy grows = 3 percent
total factor productivity grows = 2 percent
labor force grows = 2 percent
labor contributes = 40 percent
stock of capital rise = 0.33 percent
solution
we apply here Economy growth % formula that is
Economy growth % = total factor productivity + labor contributes × labor force grows + ( 1- labor contributes ) stock of capital .............1
put here value
3% = 2% + 40% (2%) + 60% C
3% = 2.8 + 0.6 × C
C =
C = 33.33 %
so given statement is true