Answer:
D: declining marginal benefit
Explanation:
Declining benefits is a concept explained in the theory of diminishing marginal returns. As per this theory, additional deployment of an input while holding the other factors constant will lead to negative returns.
The term marginal refers to one more additional input or output. Marginal returns is the additional gain resulting from the sale or production of an extra unit. A firm enjoys positive marginal returns until production gets to its capacity level. Further input after this level results in decreasing gains.
This company opts not to purchase more inputs because it has reached its optimal level. Additional inputs will lead to reduced returns and, eventually, losses.
Answer:
Hoping that the answers help
Answer:
B) 1 corn for 1 auto
Explanation:
A country possesses a comparative advantage in the production of a product if the opportunity cost, in terms of the amount of other products that it gives up to produce this product, is lower than it is for its trading partners.
If one nation is able to produce a good at a lower opportunity cost than another, it has a comparative advantage in that good.
For Mexico and United States, 1 corn for 1 auto would not be potential terms of trade.
Answer:
$36 per purchase order; $20 per square foot
Explanation:
Factory expected cost:
= Cleaning factory + Providing utilities
= $35,000 + $77,000
= $112,000
Purchasing:
Activity overhead rate:
= Expected costs ÷ Expected amount of cost driver
= $ 183,600 ÷ 5,100
= $36 per purchase order
Factory:
Activity overhead rate:
= Expected costs ÷ Expected amount of cost driver
= $112,000 ÷ 5,600
= $20 per square foot