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2 years ago

A company opts not to purchase more resources, since additional output will not increase their revenue. Which BEST

Business

1 answer:

igomit [66]2 years ago

8 0

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.

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A theory asserts that consumers will purchase less of a good at higher prices than they will at lower prices.

FrozenT [24]

Answer:

b. It is likely that variables other than the price and quantity of cars demanded were

changing.

Explanation:

The law of demand states that the higher the price of a good, the lower the quantity demanded and the lower the price of a good, the higher the quantity demanded.

If price of cars was increasing and the quantity demanded also was increasing, it indicates other variables were changing. For example, if income was increasing at the time, the demand for cars would increase if cars are normal goods.

I hope my answer helps you

4 0

3 years ago

Sew ‘N More just paid an annual dividend of $1.42 a share. The firm plans to pay annual dividends of $1.45, $1.50, and $1.53 ove

andre [41]

Answer:

Stock Worth Today: $3,71 + $10,93 = $14,64

Stock Worth Today: Present Value (3 Next Years) + Present Value (Perpetuity)

Explanation:

We need to apply two financial methods to find the value of the shares today.

First, the Present value formula for the next 3 years, and for the rest we apply the Perpetuity formula, then to the result of Perpetuity we apply the Present Value because it's expressed in values of Year 4.

Present Value Formula : C/(1+r)^t to each cash dividends each year.

Perpetuity Formula : Dividend / r

PV of the perpetuity = Periodic cash inflow/ Interest rate

Perpetuity = 1,60/ interest rate

Perpetuity = 1,60/ 0,10

Perpetuity = $16

The Perpetuity it's expressed at the moment of Year 4, we need to discount the Perpetuity to the current time:

Present Value Formula : C/(1+r)^t = 16/(1,10)^4 = $10,93

PV of the the next 3 years dividends.

Present Value = 1,45/(1+0,1)^1 + 1,50/(1+0,1)^2 + 1,53/(1+0,1)^3

Present Value = 1,32 + 1,24 + 1,15

Present Value = $3,71

7 0

3 years ago

Assume that a pure monopolist and a purely competitive firm have the same unit costs. In this case, determine what is true with

grandymaker [24]

Answer:

a. 1, 5 and 7

b. Resources will be allocated inefficiently

c. Differing sizes and capacities

d. Benefits due to economies of scale

e. Reduce prices and improve resource allocation.

Explanation:

The correct combination is 1, 5 and 7. The price of a pure monopoly firm is much higher than that of purely competitive firm because the later is a price taker while the former is a price fixer. Because of this, output of monopoly is lower while the profit margin is higher than that of competitive firm.

Assuming that a pure monopolist and a purely competitive firm have the same unit costs. In the case of a pure monopolist, resources will be allocated inefficiently because the monopolist does not produce at the point of minimum Average Total Cost and does not equate price and Marginal cost.

Even though both monopolists and competitive firms follow the MC = MR rule in maximizing profits, there are differences in the economic outcomes because pure competitors lack capacity and are smaller in size while the monopolist has the capacity to expand inorder to maximize profits.

The costs of a purely competitive firm and a monopoly may be different because the monopolist is capable of taking advantage of cost reduction arising from economics of scale. Pure competitors does not experience economies of scale due to their small sizes.

If a monopoly can experience economies of scale, it can reduce prices beyond that of the pure competitor thereby ensuring a more efficient resource allocation.

5 0

3 years ago

The purpose of sobriety checkpoints that are set up by community and state police is to deter drunk driving and ultimately save

lorasvet [3.4K]

Answer:

A) Laws represent the minimum guidelines that companies must follow,whereas a firm's ethical stance may venture beyond the minimum level of compliance.

Explanation:

In the given scenario there are laws that allows community and state police to set up sobriety check points that discourages drunk drivers and saves lives.

The inclusion or removal of applications that helps drunk drivers avoid these checkpoints is not covered by the law. So if a company decides to include such applications it is at their discretion.

Blackberry have chosen to remove applications that helps drunk drivers avoid checkpoints. This is an example of when a company has ventured beyond the minimum level of compliance because of their ethical stance.

Google and Apple however have only ventured beyond the minimum compliance level because they have refused to honour requests by legislators to remove apps that permit smartphone users to navigate around the checkpoints.

5 0

3 years ago

The company has the following beginning balances in its stockholders' equity accounts on January 1, Year 1: Common Stock, $100,0

Sonja [21]

Answer Balance sheet December31

Common stock. 100,000

Paid in capital. 3,600,000

Retained earnings. 1,610,000

Total. 5,310,000

Explanation:

The equity section of the balance sheet contains the equity issued and other capital provided by the owner for running the company.

The retained earnings represents balance from the previous years income accounts balance.

The current year income account balance at the year end is added to the accumulated retained earnings balance at the beginning of the year.

This is why $510,000 was added to $1,100,000.

6 0

3 years ago