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makkiz [27]
3 years ago
5

Explain the difference between the law of diminishing marginal returns and the law of dininishing marginal rate of techinal subs

titution.
Business
1 answer:
leonid [27]3 years ago
3 0

Answer:

The primary difference between those two concepts is focus that each term has. The first one focus on the relationship between the level of production and the level of return. While the second one focus on the relationship between the level of production and the amount of factors used for that production.

Explanation:

One the one hand, the law of diminishing marginal returns is a concept known in the microeconomics theory due to the fact that it establishes the relationship between the productivity and the income for every aspect of it. Meaning that, when the productivity increases because of the increase of only one factor of production then the income will start to slowly decrease, confirming that when only one factor is increased the production will start to be incomplete and the return will decrease for that.

On the other hand, the law of diminishing marginal rate of technical substitution indicates the relationship between the level of output and the different factor used to produce. Meaning that, it shows how to keep the level of output the same while making changes in the amount of factors used.

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Answer:

At one time, the centrally planned economy of China encouraged farmers to produce  iron in their backyards, rather than have factories make iron. This proved unsuccessful,  since most of the farmers' iron was of poor quality. Why do you think this approach was  unsuccessful? How could this experiment become a success in a free market economy?

The reason why the approach whereby farmers make iron in their backyard could not work out is as a result of not being inclined in that market as they are only skilled in agriculture, also they do not understand the rhetorics of the business.

The experiment would be a success in a free market as anyone is allowed to sell such product, this gives room for competition and helps to price reduction which is good for the consumers, also it would help in improvement of such product's quality because of competition involved

Explanation:

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3 years ago
Assume that an American company today invests some of its spare cash in a Hungarian money market account that will earn 8 percen
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Answer:

D. The dollar appreciates against the Hungarian forint.

Explanation:

If after investing, it happens during the next two months that the dollar invested by the American company appreciates against the Hungarian forint.

It would imply that the company will earn less than 8 percent on its investment.

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3 years ago
Read 2 more answers
Glumhoff​'s Packaging Department had the following information at July 31. All direct materials are added at the end of the conv
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Answer:

Explanation:

The total equivalent units of direct materials and conversion costs for the month has been computed and attached.

Note that the conversion cost for the ending work in process was calculated as:

= $35,000 × 28%

= $35,000 × 0.28

= $9,800

Check the attachment for further analysis.

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3 years ago
Recent evidence suggests that in addition to its role a sensory integration and relay station _____ plays a key role in regulati
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The thalamus is a sensory integration and relay station that recent studies have shown to play a role in regulating levels of awareness.

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3 years ago
Thomson Co. had $150,000 and $310,000 in cash on the balance sheet at the end of 2XX0 and 2XX1, respectively. Its cash flow from
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Answer:

$4,790,000

Explanation:

We know,

Opening cash flow + Net cash generated during the period = Closing cash

Opening cash = $150,000

Closing = $310,000

Net cash generated = $310,000 - $150,000 = $160,000

Cash inflow from operating activities = $2.5 million

Cash flow from investing activities = $2 million

Cash from issue of debt = $500,000

Dividends paid = ($50,000)

Net cash generated = $4,950,000

Cash generated - Cash used for repurchase of common stock = $160,000

$4,950,000 - cash used = $160,000

Cash used in repurchase of common stock = $4,790,000

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3 years ago
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