Is the point of diminishing returns closest to the point

Assignment Help Engineering Mathematics

Reference no: EM131793658

Output

The figure shows a typical graph of output y (in thousands of dollars) as a function of capital investment I (also in thousands of dollars).

(a) Is the point of diminishing returns closest to the point at which I = 20, I = 60, or I = 120? Explain.

(b) The average output per dollar of capital investment is defined as the total output divided by the amount of capital investment; that is,

Average output = f(I)/I

Calculate the slope of a line from (0, 0) to an arbitrary point (I, f(I)) on the output graph. How is this slope related to the average output?

(c) Is the maximum average output attained when the capital investment is closest to I = 40, to I = 70, or to I = 140? Explain.

Reference no: EM131793658

Questions Cloud

How will the total dividend be divided : The company declares a total dividend of $ 200,000. How will the total dividend be divided between the common and preferred stock

What is alices cost recovery : Alice purchased business office furniture on September 20, 2015, for$55,000. What is Alice's cost recovery for 2016?

How much cash flow is lost due to the reduced depreciation : Assume a corporation has earnings before depreciation and taxes of $104,000, depreciation of $42,000, and that it has a 30 percent tax bracket.

What is their current ordering quantity : A produce distributor uses 800 packing crates a month, which it purchases at a cost of $10 each. What is their current ordering quantity?

Is the point of diminishing returns closest to the point : Calculate the slope of a line from (0, 0) to an arbitrary point (I, f(I)) on the output graph. How is this slope related to the average output?

Provide a summary for the tax issues of earnings : Ben Watson has asked you, the company's CFO, to research the U. S. GAAP and provide a summary for the tax issues of earnings of foreign subsidiaries.

What was the cost of the machine to jenks : The present value of an ordinary annuity for five periods at 8% is 3.99271. What was the cost of the machine to Jenks

What is the reorder point to achieve desired service level : Assume normality and that seasonality is not a factor. What is the reorder point to achieve the desired service level?

Sketch a diagram of the two period stock price model : Suppose that, in each period, the cost of a security either goes up by a factor of u = 2 or down by a factor d = 1/2. Assume the initial price of the security.

User Account

All Pages