Answer:
Ans. The after-tax rate of return on the municipal bonds is 3% and the after tax rate of return on the corporate bonds is 4.5%
Explanation:
Hi, the formula to find the after-tax rate of return of any taxable income is as follows.
Therefore, in the case of the municipal bond.
So, the after-tax rate of return of the municipal bond is 3%.
And for the corporate bond is.
And the after-tax rate of return of the corporate bond is 4.5%.
It means that taxes on municipal bonds are:
In the case of municipal taxes:
1% taxes for municipal bonds
In the case of corporate taxes:
1.5% taxes for corporate bonds
Best of luck.
The answer is a. buying it.
When people buy goods then it creates a demand and when that demands
lead to more production to meet those demands.
The more the demand for a product or service, the value for it goes up.
Answer:
Diminishing returns
Explanation:
A firm producing widgets (term for a generic good) has two factors of production.
The factory and labour. The capacity of the factory is fixed, and the marginal cost
(MC) of labour is the same (i.e. each new worker will cost the same).
There are two stages to how MC is affected.
1. Increasing returns (MC goes down)
As output begins to increase, the large manufacturing processes/equipment still not fully utilised means and the additional labour can be productive as they can always use the equipment to its full potential due to which the MC is relatively low.
2. Constant returns (MC goes sideward)
At this point, labour is producing its optimal output per unit. The marginal cost is therefore at its lowest.
3. Diminishing returns (MC goes up)
The more labour that is employed, the less marginal output it is able to produce. This could be a result of too many people to efficiently operate/ rotate use of machinery. The cost increases more and more to generate an extra unit of output, because of labour exhibiting diminishing returns in the short run.
In this question, the 10th worker has added 22 units which is 3 units less than the number of units added by the 9th worker, thus the company is producing less marginal output for each worker. so based on the above discussion it can be concluded that the company has Diminishing returns.
Answer:
The target cost per unit is $3.44 per unit for the filter
Explanation:
Computing the target cost per unit of the filter as:
Computing revenue as:
Revenue = Maximum price per unit × Selling units
where
Maximum price per unit is $4
Selling units are 1,000,000
So,
Revenue = $4 × 1,000,000
Revenue = $4,000,000
The target profit is as:
Target Profit = Minimum rate of return × Revenue
Target Profit = 14% × $4,000,000
Target Profit = $560,000
Now, computing the target profit per unit as:
Target profit per unit = 14% of $4
Target profit per unit = 14% × $4
Target profit per unit = $0.56
Computing the Target cost as:
Target cost = Maximum price - Target profit per unit
Target cost = $4 - $0.56
Target cost = $3.44 per unit
