Answer:
The marginal benefit is greater than the marginal cost of an additional crop-dusting.
Explanation:
Marginal benefit is the extra utility derived from consuming one more unit or a good or service. Is the maximum amount that a consumer can pay for consuming an additional unit of a product or a service.
The concept of marginal benefit focuses on why consumers are ready to pay a specific amount of money for some goods, but refrain from doing the same for another product.
This concept helps companies ensure that the utility of their products does not diminish.
A marginal cost is the additional cost to produce one more unit. It is high initially and drops as production increases.
In the intersection of marginal benefit and cost, is the point where the marginal revenue is equal to the marginal cost.
If the marginal revenue is bigger than the marginal cost, is convenient.
Answer:
Salah
Cash Dividends during Year 2:
= $84,400
Explanation:
a) Data and Calculations:
Dividends Paid:
Year 1 Retained earnings = $587,400
Year 2 Net Income = 191,000
Year 2 Retained earnings = (694,000)
Dividends paid = $84,400
b) Salah paid dividends worth $84,400. These represent the difference between the beginning retained earnings with the year 2's net income and the year 2's retained earnings. It is a reduction of the retained earnings after adding the net income for the year.
Answer:
$250 is the change in social surplus attributable to the increase in the toll
Explanation:
Suppose the government increase in toll on a certain stretch of highways by this caused a dead-weight loss occur and then resulting full in the number of cars using the highway.
Dead-weight loss = (0.5) (0.50-0.40) (50,000-45,000)
Dead-weight loss = 0.5 * 0.10 * 5000
Dead-weight loss = $250
The increase paid by other remaining drivers (0.50-0.40)(40,000) can be viewed as transfer from drivers to the government.
Answer:
c) keep a portion of deposits in reserves but lend out the rest.
Explanation:
Fractional reserve banking -
It is the system , where the fraction of the bank deposits are backed by the actual cash money on hand and is for the withdrawal purpose .
This helps to expand economy of the country , by lending more .
The bank reserves certain amount with itself and the rest amount is given for the lending purpose .
