EDWARD VS PANINYA (Eng Sub) [Fullmetal Alchemist Brotherhood] - Duration: 3:10. Arash Afkhami 624,010 views
DEFINITION of 'Commuted Value'. The present value of the future series of cash flows required to fulfill a pension obligation. Commuted value is therefore the net present value of a future financial obligation. This value can be computed mathematically assuming a given rate of interest.
Assume the wage rate is Â£10, then an extra worker Costs Â£10. The Marginal Cost (MC) of a sandwich will be the Cost of the worker divided by the number of extra sandwiches that are produced. Therefore as MP increases MC declines and vice versa. A good example of diminishing returns includes the use of chemical fertilizers-a small quantity leads to a big increase in output. However, increasing its use further may lead to declining Marginal Product (MP) as the efficacy of the chemical declines.