Answer:
The primary difference between those two concepts is focus that each term has. The first one focus on the relationship between the level of production and the level of return. While the second one focus on the relationship between the level of production and the amount of factors used for that production.
Explanation:
One the one hand, the law of diminishing marginal returns is a concept known in the microeconomics theory due to the fact that it establishes the relationship between the productivity and the income for every aspect of it. Meaning that, when the productivity increases because of the increase of only one factor of production then the income will start to slowly decrease, confirming that when only one factor is increased the production will start to be incomplete and the return will decrease for that.
On the other hand, the law of diminishing marginal rate of technical substitution indicates the relationship between the level of output and the different factor used to produce. Meaning that, it shows how to keep the level of output the same while making changes in the amount of factors used.
We are given the different rates and charges and is asked in the problem the unknown tax rate she pays on meals if the total cost of the trip is equal ot $420.04. In this case, the equation goes:
80 x 3 + 80 x 0.1 x 3 + 80 x 0.09 x 3 + 109.3 x 1.15 + 109. 3 x z = 420.04
z = 0.08
Answer: $135
Explanation:
First find the future value of the proceeds.
= 10,000 * (1 + 5%)⁷
= $14,071
The monthly payments are equal so X is an annuity and as the payment is made immediately, this is an Annuity due.
Convert the interest rate into monthly figure:
= 3%/12
= 0.25%
Present value of annuity = Annuity * (( 1 - (1 + r)^-n ) / r) * (1 + r)
14,071 = Annuity * ((1 - (1 + 0.25%) ⁻¹²⁰) / 0.25%) * (1 + 0.25%)
14,071 = Annuity * 103.82
Annuity = 14,071 / 103.82
= $135.53
= $135
Answer:
Explanation:
MIRR equation is given by :
[(FV +ve cashflow / PV -ve cashflow)^(1/n)] - 1
FV +ve cashflow = Future value of positive cashflow at reinvestment rate
PV - ve cashflow = Present value of negative cashflow at finance rate
n = number of periods
The Modified Internal Rate of Return is a devised modification for the Internal rate of return, IRR which gives rate of return on percentage and overcomes the limitations of the IRR formula.
Answer:
The correct answer is letter "A": be driven to a lower price.
Explanation:
Typically, when there is a producer to producer competition, the competing companies tend to <em>lower </em>their product prices. This happens because of the belief consumers are mainly price driven at the moment of discriminating in choosing to buy one good over another. Though, it allows consumers to at least have a couple of sources from where to choose at a fair price.