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3 years ago

When do diminishing marginal returns occur

Business

2 answers:

RSB [31]3 years ago

5 0

Answer:

When increasing one unit of production, While holding other factors constant.

Explanation:

This would result in lower levels of output, Production would become less efficient.

mel-nik [20]3 years ago

3 0

Answer:

Diminishing Marginal Returns occur when increasing one unit of production, whilst holding other factors constant – results in lower levels of output.

Explanation:

In other words, production starts to become less efficient.

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Sweden has real GDP per capita of $50,000, while Chile has real GDP per capita of $25,000. If real GDP per capita in Sweden grow

Katyanochek1 [597]

Answer:

option (B) 35 years

Explanation:

Given:

Real per capita GDP of Sweden = $50,000

Real per capita GDP of Chile = $25,000

Growth rate of Sweden = 2%

Growth rate of Chile = 4%

As per the Rule of 70, the economy's GDP doubles in $\frac{\textup{70}}{\textup{Growth rate}}$

Therefore,

The GDP of Sweden will double in = $\frac{\textup{70}}{\textup{2}}$ = 35 years

and,

Chile will double in $\frac{\textup{70}}{\textup{4}}$ = 17.5 years

Therefore,

in 35 years the GDP of Sweden will be $100,000

and,

In 35 years the GDP of Chile will also be ($50,000 in 17.5 years and $100,000 in next 17.5 years) = $100,000

Therefore,

The real GDP per capita in the two nations to converge in 35 years

Hence,

The correct answer is option (B) 35 years

8 0

3 years ago

The amount of interest ( i ) karl will earn on the amount of principal ( p ) he has in his bank account is found by using the fo

Alenkinab [10]

<span>Sheena has twice the amount of principal as Karl has in his account. We can use 100 and 200 to establish how much interest they be making, if we keep the other values the same. 100(0.1)(3) = 30 200 (0.1)(3) = 60 Sheena makes twice as much interest as Karl.</span>

4 0

3 years ago

You were planning to spend Saturday working at your part-time job, but a friend asks you to go skiing.Which of the following are

stich3 [128]

Answer:

a.The rental of any ski equipment you need.

b.The cost of a lift ticket.

d. The wages you forgo by going skiing.

Explanation:

The true cost in this case can also be called the opportunity cost of going skiing and it is defined as the total cost required in order to achieve the aim of going skiing.

The rental of any ski equipment you need, the cost of a lift ticket and the wages you forgo by going skiing are all included in the true cost of going skiing.

8 0

3 years ago

Read 2 more answers

A Resort in Hawaii is now available for sale for $400 million. Hilton Hotels Corp. and Marriott International Inc. are both cons

Agata [3.3K]

Answer:

b. Hilton should purchase the resort, but Marriott should not.

Explanation:

given data

Resort sale = $400 million

free cash flow = $45 million

time = 20 year

return = 8%

risk-free rate = 2%

Hilton beta =1.1

Marriott beta = 1.3

solution

we get here first NPV of the resort when the cost of capital is

Re = risk-free rate + beta( Rm - Rf) ........................1

Re = 2 + 1.1 ( 8 - 2 )

Re = 8.6%

and

The NPV will be as

cash flow to free cash flow is = 45 million

so NPV is $22.767

and

as that at cost of capital of 9.8%,

The NPV will be

NPV = $11.6011

so we can say that Hilton should pursue the project due to the positive NPV

but due to the negative NPV here Marriott should not pursue the project.

4 0

4 years ago

Isı yalıtımı mı daha sıcaktır ısı iletkeni mi?

Alika [10]

Answer:

translate

Explanation:

6 0

3 years ago