Incomplete question. However, I provided added explanation of the term value proposition.
Explanation:
What is the value or usefulness of this service or product to me? By clearly telling your customers satisfying answers to the raised earlier you have communicated an effective value proposition message.
So in other words, an organization should have strong convincing value propositions; so that majority of your intended target market would not resist using that product or service for another alternative.
A corporation retired $670,000 face value of bonds, which have an unamortized discount of $27,000, by repurchasing them for $670,000. How much was the gain or loss on the retirement of the bonds
Answer:
$27,000 loss
Explanation:
gain/loss on retirement of bonds = carrying value - retirement cost
carrying value = $670,000 - $27,000 = $643,000retirement cost = $670,000gain/loss on retirement of bonds = $643,000 - $670,000 = -$27,000
Dr Bonds payable 670,000
Dr Loss on retirement of bonds 27,000
Cr Cash 670,000
Cr Discount on bonds payable 27,000
With today's cell phone, you can watch the news, shoot videos, take pictures, listen to music, and so much more. Because of these features, consumers may want to replace their existing phone with a new model or brand. This increase in demand is in part due to changes in
Answer:
Technology.
Explanation:
A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.
With today's cell phone, you can watch the news, shoot videos, take pictures, listen to music, and so much more. Because of these features, consumers may want to replace their existing phone with a new model or brand. This increase in demand is in part due to changes in technology which is considered to be an environmental factor.
Hence, technology plays a significant role in improving the quality of goods and services that are made available to end users so as to meet their needs or requirements.
For example, as a result of technological advancement, a user can sit in the comfort of his or her homes place an order for a particular product and have it delivered to him or her at home.
g Klein uses the perpetual inventory system and the gross method of accounting for sales. The journal entry or entries that Klein will make on March 12 is (are):
Answer:
Note: The complete question is attached as picture below
Date Account Titles and Explanation Debit Credit
12-Mar Accounts receivable $7,800
Sales $7,800
(To record the sales on account)
12-Mar Cost of goods sold $4,500
Inventory $4,500
(To record the cost of goods sold)
. Please list and discuss three. Earlier, we discussed the idea of the government creating a system where gasoline is purchased on the supply curve for $4 per gallon, and sold to us on the demand curve for $2 per gallon. Please list and discuss three reasons why this idea may be a BAD IDEA. reasons why this idea may be a BAD IDEA.
Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
This question discusses about the concept of subsidy. Let's first get to know what is subsidy.
Well, subsidy is a financial relief that usually governments give to their people and industries to grow the economy of the country and to give relief to the common people of the country. For example, if a country is importing gas on the rates of $4 per gallon, then as a subsidy it will provide the gas to industries and people to $2 per gallon. It seems as a good idea but it has serious repercussions as well. It may be terrible idea as well, let's see how.
1. Higher amounts of taxes:
The amount that common people and industries get as a subsidy is basically driven out from the people in the form of taxes. Governments raise funds for the subsidy from the tax collection of the country. So, if the subsidies are given then, there is a high probability that, government will impose higher taxes on the people of the country.
2. Misuse:
Obviously, if government gives subsidies then opportunists and people who hoard goods will misuse and buy huge amounts in less prices and sell it in the original prices. It can disturb the demand and supply curve and hence raise the inflation in turn.
3. Supply deficiency:
With subsidies on goods comes deficiency of supplies as well. Due to less prices of a particular good in the market, demand can go huge. Consequently, it can create supply deficiency and will eventually contribute in removing of the subsidies.
A single firm provides the entire market supply. What type of market structure does this firm likely operate in
Answer:
Monopoly.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. Thus, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.
For example, a public power company that serves as the only power utility provider to the general public.
Hence, if a single firm provides the entire market supply. Then type of market structure does this firm likely operate in is monopoly.
The first two steps of the accounting cycle are:
A. Journalize and Post
B. Journalize and Trial Balance
C. Post and Trial Balance
Answer:
A. Journalize and Post
Explanation:
In accounting Journalize refers to the act of recording the transactions that occurred in your operation to your financial record. Depending on the size of the business, journalizing process might be different. Small scale businesses can get by with written record while larger businesses usually need proper computerizations.
Posting is the second step after the journalizing process. More specifically, posting journal entries to the accounts in the ledger. This will show each accounts that the company possess along with the value of each accounts.
Bonita Corporation has outstanding 9,100 shares of $100 par value, 6% preferred stock and 60,500 shares of $10 par value common stock. The preferred stock was issued in January 2020, and no dividends were declared in 2020 or 2021. In 2022, Bonita declares a cash dividend of $270,000. (a) Assume that the preferred are noncumulative. How much dividend will the preferred stockholders receive
Answer:
Bonita Corporation
Assuming that the preferred are noncumulative, the dividend that the preferred stockholders will receive is:
= $54,600.
Explanation:
a) Data and Calculations:
Outstanding 6% preferred stock = 9,100 shares
Par value of preferred stock = $100 per share
Value of preferred stock = $910,000
Fixed annual dividend when declared = $54,600 ($910,000 * 6%)
Common stock = 60,500 shares
Par value of common stock = $10 per share
Value of common stock = $605,000
Dividends declared in 2022 = $270,000
Since the preferred stock are non-cumulative, the dividend that the preferred stockholders will receive in 2022 = $54,600
The remaining $215,400 will be allocated to common stockholders at $3.56 per share ($215,400/60,500).
If the government implements an expansionary fiscal policy, what action can the central bank take to maintain a stable interest rate
Answer:
Buy government bond
Explanation:
Ideally, a government would implement expansionary fiscal policy if it is aimed at making more money available in the economy. Expansionary fiscal policy includes increase in spending of governments on her projects, reduction in tax payments, tax rebates, transfer payments etc.
With regards to the above, the central bank of a country would buy government bond in order to maintain stable interest rate whilst implementing expansionary fiscal policy. The aim is to maintain a stable availability of money in the economy.
Suppose that, as part of an international trade agreement, the U.S. government reduces the tariff on imported coffee. Will this affect the supply or the demand for coffee? Why? Which determinant of demand or supply is being affected? Show graphically with before- and after-curves on the same axes. How will this change the equilibrium price and quantity of coffee? Explain your reasoning.
Answer:
The explanation of that same issue is described throughout the explanation section below.
Explanation:
A tariff reduction might well transition the quantity supplied of coffee just to something like the right because many coffees could then be started to sell with such relatively low taxes collected by the government. This same supply curve was influenced by the political regulation factor. Very few import taxes encourage consumers to sell further throughout the US. This same market value of the balance will indeed descend as well as the total amount will indeed increase.All defective parts must be removed and repaired at a cost of $120 per part. 1. Using expected value, is it economically better to make or buy the component
Answer:
Yes repair work is better than purchase of new equipment.
Explanation:
The cost of purchase and manufacturing new component is higher than the expected value of the repair cost. The repair cost is $120 which is added in the total cost of component. The manufacturing cost of the component is much higher than damage repair cost. The company should choose to repairing the component rather than buying or making a new one as it is economically better.
There is no convenient or economical way to trace a(n) _______ from the cost to the cost pool or from the cost pool to the cost object.
Answer:
Indirect cost
Explanation:
Indirect costs are those that are not directly attributable to a product cost. Rather they contribute to the production process that makes it possible for the company to produce products.
Examples of indirect costs are administrative costs, rent, security cost, and personnel cost.
As it does not contribute directly to product cost it is difficult to trace these costs from cost to the cost pool or from the cost pool to the cost object.
Usually indirect costs are shared among all the products manufactured.
Chuck, a single taxpayer, earns $76,800 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) Required: If Chuck earns an additional $40,260 of taxable income, what is his marginal tax rate on this income
Answer:
Answer:
a. 24%
b. 12%
Explanation:
Marginal tax rate is an incremental tax rate that is paid out of the taxable income of a tax payer. It represents the rate at which the last unit of dollar of the taxable income is taxed. The marginal rate for each income bracket is supplied by the Internal Revenue Service (IRS).
Chuck Marginal Tax Rate
a) The marginal tax rate for Chuck if he earns additional $40,000 taxable income will be:
= $75,000 + $40,000
= $115,000
Marginal tax rate for $115,000 is 24% according IRS tax rate schedule.
b) If instead, it is an additional deduction of $40,0000, the marginal tax rate will be:
= $75,000 - $40,000
= $35,000
The marginal tax rate for taxable income of $35,000 is 12% according US tax rate schedule.
Note: the interest is categorized as interest from municipal bond, so it is tax free.
It is also assumed that Chuck is single. Hence, tax rate under single filer applies to him.
Explanation:
Monic, a college professor, makes 30 photocopies of a passage from a famous novel and passes the article out to her students. The students are assigned to read the passage and write an opinion paper about it. Has Monic violated copyright law?
Incomplete question. The options:
a) Yes, Though the author will probably not enforce his or her rights under this situation, Monic has technically violated federal copyright law.
b) No. Educators have a right under the "fair use doctrine" to make limited use of copyrighted materials.
c) Yes. Monic has technically violated federal copyright law by copying and distributing this original work.
d) None of the above.
Answer:
b) No. Educators have a right under the "fair use doctrine" to make limited use of copyrighted materials.
Explanation:
Based on the "fair use doctrine" in the United States, professor Monic did not violate copyright law from a legal standpoint.
Another interesting detail is the number of copies redistributed by Monica, only "30 copies", and according to the provisions of the "fair use doctrine" that can be considered fair. Not forgetting also the substantial nature of copying, since only "a passage" from the novel is photocopied.
How do you determine opportunity cost
Answer:
See below
Explanation:
Opportunity cost is described as the foregone benefit by preferring one option over others. Opportunity cost arises when a choice is being made from several possible alternatives. When the preferred option is selected, the benefits from the other alternatives are forfeited.
Opportunity cost is determined by evaluating the forfeited benefits. The benefits from the next best alternative are the opportunity costs. In other others words, the foregone advantages of the option ranked second is the opportunity cost.
All of the following are types of grants except which?
A. SMART
B. Pell
C. Stafford
D.TEACH
Answer:
C. Stafford
Explanation:
Grants are a form of of financial help that is given to another individuals / organizations for a certain cause. (could be things such as educations, activism, efforts to help victims of natural disasters, etc)
Financial aid that's given though Grants does not need to be paid back by the recipient.
Stafford on the other hand, is a form of loan that is given to people who need help for their education. Unlike grants, loans need to be paid back by the recipient.
Answer:
c
Explanation:
Luke sold a building and the land on which the building sits to his wholly owned corporation, Studemont Corp., at fair market value. The fair market value of the building was determined to be $472,500; Luke built the building several years ago at a cost of $437,500. Luke had claimed $91,500 of depreciation expense on the building. The fair market value of the land was determined to be $221,000 at the time of the sale; Luke purchased the land many years ago for $177,000. Luke's brother will use the building in his business.
Required:
a. What is the amount and character of Luke's recognized gain or loss on the building?
b. What is the amount and character of Luke's recognized gain or loss on the land?
Answer:
A. $126,500
B. $44,000
Explanation:
A. Calculation for What is the amount and character of Luke's recognized gain or loss on the building
First step is to calculate the Adjusted basis
Adjusted basis=$437,500-$91,500
Adjusted basis=$346,000
Now let calculate the Ordinary Gain / (Loss) recognized
Ordinary Gain / (Loss) recognized=$472,500-$346,000
Ordinary Gain / (Loss) recognized=$126,500
Therefore the amount and character of Luke's recognized gain or loss on the building will be $126,500
B . Calculation for What is the amount and character of Luke's recognized gain or loss on the land
Fair market value $221,000
Less Cost of land $177,000
Gain on sale of land ($44,000)
($221,000-$177,000)
Therefore the amount and character of Luke's recognized gain or loss on the land will be $44,000
Which of the following is a principle that asserts that businesses can be a positive force for good in the world in addition to making profits? A. Corporate social responsibility B. Green practices O C. Greenwashing O D. Community development
Answer:
A. Corporate social responsibility
Explanation: a p e x
Corporate social responsibility is a principle that asserts that businesses can be a positive force for good in the world in addition to making profits. Option (a) is correct.
What do you mean by Community?A community is a social unit (a collection of living beings) that shares factors like geography, traditions, beliefs, values, or identity.
A management concept known as "corporate social responsibility" encourages businesses to incorporate social and environmental considerations into their daily operations and relationships with stakeholders.
Environmental duty, ethical responsibility, philanthropic responsibility, and economic responsibility are the four basic categories of corporate social responsibility. Companies may, however, also take into account other CSR initiatives, such as those that promote employee engagement, wellbeing, and diversity.
Therefore, Option (a) is correct. Corporate social responsibility is a principle that asserts that businesses can be a positive force for good in the world in addition to making profits.
Learn more about Community, here;
https://brainly.com/question/12179941
#SPJ2
g Use the company's financial information below to help answer this question: Sales 5000 Operating Income 1000 Net Income 500 Dividends Paid 200 Total Assets Turnover 2.0 Leverage Ratio 2.0 The company's sustainable long term growth rate is closest to: HINT: gLT
Answer:
24%
Explanation:
Missing word "Profit margin 10%"
Profit = Sales * Profit margin = $5000*10% = $500
Dividend payout ratio = Dividend paid / Profit = $200 / $500 = 0.4
Retention ratio = 1 - Dividend payout ratio = 1 - 0.4 = 0.6
Return on Equity (As per DuPont equation) = Net profit margin * Asset turnover ratio * Financial leverage = 10% * 2.0 * 2.0 = 0.4 = 40%
Sustainable growth rate = Retention ratio x Return on equity = 0.60 * 40% = 0.24 = 24%
Kuhn Co. is considering a new project that will require an initial investment of $20 million. It has a target capital structure of 58% debt, 6% preferred stock, and 36% common equity. Kuhn has noncallable bonds outstanding that mature in 15 years with a face value of $1,000, an annual coupon rate of 11%, and a market price of $1555.38. The yield on the company’s current bonds is a good approximation of the yield on any new bonds that it issues. The company can sell shares of preferred stock that pay an annual dividend of $8 at a price of $95.70 per share. Kuhn does not have any retained earnings available to finance this project, so the firm will have to issue new common stock to help fund it. Its common stock is currently selling for $33.35 per share, and it is expected to pay a dividend of $2.78 at the end of next year. Flotation costs will represent 8% of the funds raised by issuing new common stock. The company is projected to grow at a constant rate of 9.2%, and they face a tax rate of 25%. What will be the WACC for this project? (Note: Round your intermediate calculations to two decimal places.)
Answer:
8?14%
Explanation:
Calculation for What will be the WACC for this project
First step is to calculate the Yield using financial calculator
N=15 years
FV=1,000
PV=-$1555.38
PMT=11%
CPT I/Y=5.48%%
Second step is to calculate After-tax cost of debt using this formula
After-tax cost of debt=Yield*(1-tax rate)
Let plug in the formula
After-tax cost of debt=5.48%*(1-25%)
After-tax cost of debt=5.48%*75%
After-tax cost of debt=4.11%
Third step is to calculate Cost of preferred stock using this formula
Cost of preferred stock=Dividend/Price
Let plug in the formula
Cost of preferred stock=8/92.25
Cost of preferred stock=8.67%
Fourth step is to Cost of common stock using this formula
Cost of common stock=Expected Dividend/(Price*(1-Flotation cost %))+Growth rate
Let plug in the formula
Cost of common stock=2.78/(33.35*(1-8%))+5.48%
Cost of common stock=2.78/(33.35*0.92)+5.48%
Cost of common stock=(2.78/30.68)+5.48%
Cost of common stock=9.06%+5.48%
Cost of common stock=14.54%
Now let calculate WACC
WACC=58%*4.11%+6%*8.67%+36%*14.54%
WACC=8.14%
Therefore What will be the WACC for this project is 8.14%
A major problem with lectures, simulations and outdoor training exercises is:employees generally find them boring
organizations generally find them too expensive
there is often little transfer of training to actual organizational situations
they can only be used with upper management level employees
Answer:
Option (B). See explanation below.
Explanation:
I rewrite the question for clarity:
A major problem with lectures, simulations, and outdoor training exercises is?
(A) Employees generally find them boring
(B) Organizations generally find them too expensive
(C) There is often little transfer of training to actual organizational situations
(D) They can only be used with upper management level employees
Now the question asks for the major problem. This means that some other options would be a 'minor problem' and/or some options won't be a problem at all.
An example of the latter is option D. It is not a problem at all! Outdoor training exercises, lectures and simulations can also be used for or with mid level employees and other sets of skilled workers in the firm.
Minor problems include options A and C. For option A, it is not every time or in every case that employees get bored with extra-duty activities.
For option C, it is not often or common that the knowledge and skills from the training aren't transferred to actual organizational situations. Instead, it is rare that little knowledge & skill from the training is applied to actual organizational situations.
THE ANSWER IS (B)
Organizations generally find these extra activities too expensive!
This is because:
1. It takes some or much effort to get skilled trainers for the employees (managers inclusive). That is a cost.
2. The total cost of materials (not personnel) to be used to train the employees is usually high. Such costs include cost of projectors, board rooms, open air centers or fields, sound system, writing materials, food and drinks, hotel accommodation in the case of camping, technical materials like tablets and other gadgets, etc.
3. The cost of time set out for these training exercises! Whichever group of employees (maybe all employees in a specific department) will be undergoing training, they will have to be excused from work either for some hours in the daily routine or for some whole days. This will mean their partial or total absence from work and this might cost the company some profit. Implicit cost matters too.
KUDOS.
which of the following is a distinguishing feature of the declining balance method of calculating depreciation
its the declining balance method is to accelerate depreciation..the big depreciation expenses during the earlier
Costco wants to know how to stock their warehouses for a future pandemic and are using current sales data to help them project the needs. Which kind of analytical technique are they using
Answer:
Predictive analytics.
Explanation:
Predictive analytics can be defined as a statistical approach which typically involves the use of past and present data ( factual informations) in order to determine unknown events or future performances of a business firm or organization. It is focused on determining what is likely to happen in the future.
In this scenario, Costco wants to know how to stock their warehouses for a future pandemic and are using current sales data to help them project the needs.
Hence, the kind of analytical technique Costco are using is predictive analytics.
Stephanie is 60 years old and is in the 30% tax bracket. Fifteen years ago, she established a Roth IRA that now has a balance of $62,180. She would like to buy a new car and is considering using the funds from her Roth IRA. If she withdraws $20,000 from her account, she will Group of answer choices
Answer:
b. not have to pay taxes on her withdrawal
Explanation:
Options are "a. pay $6,000 in taxes b. not have to pay taxes on her withdrawal, c. have to pay payroll taxes. d. have to pay a 10% penalty on her withdrawal."
For the year 2020, if the age of the person making the withdrawal is more than 59 1/2 years and the balance in Roth IRA account is kept for more than 5 years then, the funds in such account can be withdrew without any taxes and penalties and that too without any conditional requirements.
According to the question, she withdraws $20,000 from her account, "she will not have to pay taxes on her withdrawal".
What is the term IRA about?
The full form of IRA is Individual Retirement Account. This account is considered as the beneficiary account at the time of retirement as it allow to take tax advantage.
In case of year 2020, if the age of the person making the withdrawal is more than 59 1/2 years and the balance in Roth IRA account is kept for more than 5 years then, the funds in such account can be withdrew without any taxes and penalties and that too without any conditional requirements.
Learn more about tax bracket, refer to the link:
https://brainly.com/question/7629788
BBC Company hopes to buy new computers in two years and wishes to set aside money today for the purchase. BBC's Controller has developed the following estimates: Estimated Cash Outflows Probability Assessment $12,700 30% $13,300 50% $14,500 20% How much should BBC deposit today in an account earning 5% compounded annually, to have sufficient cash on hand to pay for the computers
Answer:
$12,117.91
Explanation:
The first task is to determine the cash flow amount that would be required in 2 years time by determining the expected value of estimated cash outflows which is the sum of the estimated cash flows multiplied by their respsective probabilities as shown thus:
expected value in 2 years=($12,700*30%)+($13,300*50%)+( $14,500*20%)
expected value in 2 years=$13,360.00
Using the present value formula below, we can calculate the amount to be invested today:
PV=FV/(1+r)^n
PV=the amount to be invested today=the unknown
FV=future value=FV=the amount of cash outflow required in 2 years=$13,360.00
r=rate of interest=5%
n=the length of time that the amount would invested=2 years
PV=$13,360.00/(1+5%)^2
PV=$12,117.91
Why is it important for individuals to correctly calculate their tax liability?
Answer:
So they won’t have to get robbed much
Explanation:
Marco, a real estate agent, receives a dozen emails in his inbox. Six of the emails are inquiries to a new condo listing he has in the North End. He confirms appointments with three of the prospective buyers, one of them decides that the condo won't work after receiving information on the layout of the property and the other email Marco ignores because the email address has a last name in it that appears to be Irish. Has Marco risked his real estate license
Answer:
Yes because Marco discriminated by ignoring the email due to its appearance of being linked to someone of a different national origin
Explanation:
Real estate agents are not allowed to discriminate against buyers of property. Of they do they can lose their Liscence.
Discrimination is the act of behaving differently
and withholding benefits from people based on their race, colour, religion, sex, or gender.
In this scenario Marco ignores communicating with one of his clients because the email address has a last name in it that appears to be Irish.
He did not consider the application at all resulting in the client losing the opportunity to obtain the new condo.
As a result of this discriminatory action Marco stands the risk of losing his liscence
Various financial data for Year 1 and Year 2 follow. Calculate the total productivity measure and the partial productivity measures for labor, capital, and raw materials for this company for both years. What do these measures tell you about this company?
Last year This year
Output Sales $200,000 $220,000
Input Labor 30,000 40,000
Raw Materials 35,000 45,000
Energy 5,000 6,000
Capital 50,000 50,000
Other 2,000 3,000
Answer:
See below
Explanation:
With regards to the above, the formula for total productivity measure is
= Output Sales( Total output) / Total Input
Total productivity measurement for Last year.
Output sales = $200,000
Total input = Input labor + Raw materials + Energy + Capital + others
= $30,000 + $35,000 + $5,000 + $50,000 + $2,000
= $122,000
Therefore, total productivity measure
= $200,000/$122,000
= 1.64
Total productivity measurement for this year
Output sales= $220,000
Total input = Input labor + raw materials + energy + capital + others
= $40,000 + $45,000 + $6,000 + $50,000 + $3,000
= $144,000
Therefore, total productivity measure
= $220,000/$144,000
= 1.53
Partial productivity for last year
Output sales = $200,000
Input = Input labor + raw materials + capital
= $30,000 + $35,000 + $50,000
= $115,000
Partial productivity measure = $200,000/$115,000
= 1.74
Partial productivity measure for this year
Output sales = $220,000
Input = Input labor + raw materials + capital
= $40,000 + $45,000 + $50,000
= $135,000
Therefore, partial productivity measurement for last year
= $220,000/$135,000
= 1.63
The above measures indicates that there is a reduction in total productivity measures from last year to this year. Same applies to partial productivity measures for both years.
How does earned income, like wages, differ from unearned income, like interest or rental
income? How would you pay taxes on these different types of income?
Answer:
Your tax liability is based on your overall income, so it's important to understand the different types of income and how the IRS treats them. Earned income and unearned income each include diverse forms of payments and have unique tax implications.
Explanation: Hope this helps <3
Over several decades, some industries, such as textile and clothing, which were once a significant part of the U.S. economy, have shifted manufacturing abroad. Using the idea of opportunity cost, provide an explanation of the reasoning behind this shift. How has this shift affected economic well-being locally
Answer:
Opportunity costs are the benefits lost or extra costs associated to choosing one activity or investment over another alternative.
In this case, the textile and clothing industry was replaced by more modern industries or services that require less labor, probably less capital and less natural resources. This means that the opportunity cost of producing clothes was too high when it meant that it had to replace other more profitable industries.
On the other hand, the opportunity cost of the clothing industry abroad is very low since labor is very cheap compared to the US, so some foreign countries have a comparative advantage.
When you are allocating resources efficiently, you will allocate them to activities that yield the highest returns and reject those that yield low returns. This improves the well being of the companies and the population as a whole.
Explanation:
Jim usually goes to the movies with friends on Friday nights at the local movie theater. This week, the movie theater held over the movie, Anchorman 2, which Jim saw last week. Jim and his buddies decide to go bowling rather than attend the movie a second time. Which of the following best describes why Jim decided to go bowling this weekend?
a. Jim's utility function
b. Diminishing marginal returns
c. Profit maximization
d. Consumer budget constraint
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.
