Answer:
C) the firm is experiencing a diminishing marginal rate of technical substitution.
Explanation:
Isoquant reflects factor combinations which give producer same output level. It is analogous to consumer's indifference curve, reflecting goods combinations giving same satisfaction level.
- It is downward sloping as same quantity of a good can be produced by - one factor increase, other factor decrease & one factor decrease, other factor increase.
- It is also concave i.e inwards bending towards origin, because of fallings slope. It implies that marginal rate of technical substitution (fall in one factor , replaced by gain in other factor) with same level of output i.e same isoquant - keeps on falling.
This concept is highlighted in the given statement : If a firm hires one worker and eliminates four units of capital, and hires one more worker and replaces three more units of capital, keeping output constant.
When an individual qualifies for a lower premium or rate than standard risks, the insured is considered a Preferred risk
What is an Insurance?
Insurance protection against loss is offered by insurance. It is a form of risk management that is mostly used to reduce the risk of a potential loss that is unknown or contingent. A business that provides insurance is known as an insurer, insurance firm, insurance carrier, or underwriter.
To learn more about Insurance
brainly.com/question/26285319
#SPJ4
<span>The effectiveness of the policy might be best monitored using the S&P 500, because it draws from a broader set of companies. The Dow Jones Industrial Average is an index of 30 leading companies. While it reflects the overall health of the stock market, it does not provide enough information about small companies.</span>
Answer:
$10,275.03
Explanation:
Years 0 1 2 3 4
Cash flow -15000 -58000 45000 45000 45000
Successful chance result (62%) -9300 -35960 27900 27900 27900
Considered cash flow -15000 -35960 27900 27900 27900
Discount factor (14%) 1 0.877 0.769 0.675 0.592
Present value -15000 (31,543.86) 21,468.14 18,831.71 16,519.04
Net present value = -$15000 - $31,543.86 + 21,468.14 + 18,831.71 + 16,519.04
Net present value = $10,275.03
