Answer:
a) The marginal benefit is greater than the marginal cost of additional units.
Explanation:
Cost-benefit analysis is the systematic process of wieghing various transactions based on comparism between their benefit and cost.
The rational storage business owner should compare the cost of building another section of storage units to the benefit from 100 renters.
If the additional cost is justified by the benefit then he can go ahead with the construction.
Answer:
b. Diminishing marginal returns
Explanation:
According to the law of diminishing returns, as more units of a variable input is added to a fixed income of production, output might increase at a point but after some time total output would increase at a decreasing rate and marginal product would be decreasing.
Due to the fact that Jim has seen the movie once, he would not derive the same level of satisfaction from watching the movie a second time. The utility he would receive from watching the movie a second time would be less than when he watched it a first time.
Answer:
Price ceiling binding
price floor binding
Price floor binding
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
The maximum price ($2.50) is less than the equilibrium price($3) . So it is a binding price ceiling
The minimum price ($3.40) is greater than the equilibrium price($3) . So it is a binding price floor
In the 1930s Canada decided to raise taxes on goods imported in the United States in retaliation for the high tariffs that were created by the Hawley-Smoot Tariff. The Hawley-Smoot Tariff raised tariffs on nearly 20,000 imported goods to the United States to extremely high levels. This policy was put in place in an effort to protect American jobs following the Great Depression, but instead closed the U.S. economy off to the global market most likely hurting the American economy further.
Given:
Sales Revenue = 150,000
ROI = 12%
turnover = 3
ROI = Margin * Turnover Margin
12% = Margin * 3
12%/3 = Margin
4% = Margin
Margin = Net Operating Income / Sales
4% = Net Operating Income / 150,000
4% * 150,000 = Net Operating Income
6,000 = Net Operating Income
