William is interested in exercising more, but does not feel he has the time. Write a short response explaining how he can find t

Answer: - $103,000

Explanation:

Cash from the savings account = $4,000,000

Interest earned = 5%

Loan amount = $60,000

Loan interest = 5%

Total sale price = $4,100,000

According to the information provided,

Scott allocated $4,000,000 from his savings that yields a 5% annual interest, while also taking out a $60,000 loan with a 5% annual interest rate.

Interest on the loan = 0.05 × $60,000 = $3,000

The business was sold for $4,100,000 after one year. Thus, the return on his investment is

$(4,100,000 - 4,000,000 - 3000) = $97,000

However, had Scott maintained his $4,000,000 in the savings account, he would have received

0.05 × 4,000,000 = $200,000 in interest.

Therefore, calculating the accounting profit gives:

$97,000 - $200,000 = - $103,000

Response:

The answer is option "C": diminishing marginal product of Labor.

Clarification:

The diminishing marginal product of Labor is derived from the law of diminishing marginal returns, which states that as additional input is employed, there comes a point when the rate of output growth starts to decline. In the scenario of diminishing marginal product of Labor, the situation is that with more workers brought into a company, there is reduced space available for all of them to function.

Consequently, adding more employees will enhance productivity, but at reduced levels.