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Pani-rosa [81]
2 years ago
11

Assume that labor and capital are the only two inputs a perfectly competitive firm uses to produce wheat. The firm hires its inp

uts in perfectly competitive input markets. The unit price of labor is $8 and of capital is $20. When the firm employs the profit-maximizing combination of these two inputs, the marginal product of labor is 2 tons of wheat and of capital is 5 tons of wheat. The price of wheat per ton must be
Business
1 answer:
noname [10]2 years ago
5 0

The price of wheat per ton must be $4 when profit-maximizing combination is employed.

<h3>What is Price?</h3>

This is defined as the amount of money that has to be paid to acquire a given product.

To get the price per ton for the company to make profit, we find the ratio of the unit price of labor to the marginal product of labor.

$8 / $2 = $4.

Read more about Price here brainly.com/question/24877850

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Match the following:
asambeis [7]

Explanation:

1. If butter complements margarine for instance, and there occurs a sudden increase in the price of butter leading to lower demand, this would affect the demand for margarine negatively leading to a fall in the demand for margarine.

2. If this goods are substitutes the demand for butter will increase when the price of margarine rises.

This is because it is only natural for people to switch to the next best alternative (substitute) that fills the same purpose or needs.

3. Remember Ice cream and ice cream cones complementary goods; meaning the demand for one increases the demand for the other and vice versa.

4. If the price of ice cream increases, demand would also decrease for ice cream as consumers are usually sensitive to price.

This decrease in the demand for ice cream would also affect ice cream cones since they complement each other, leading to a decrease in the demand for ice cream cones.

5 0
3 years ago
In what ways does the format of a statement of financial or position under ifrs often differ from a balance sheet presented unde
Amiraneli [1.4K]
Umm can someone answer this please because i need help on this as well
7 0
3 years ago
Which of the following is excluded from calculations of GDP?
Vinil7 [7]

Answer: All of the above.

Explanation: None of the listed options would be included when calculating the gross domestic product of a country. This is so because gross domestic product only calculates the total value of commodities/services produced by a country during a fixed time frame.

8 0
3 years ago
The market rate is the rate used to calculate the actual cash payments made to bondholders.
NISA [10]
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6 0
4 years ago
A product sells for $250 per unit, and its variable costs per unit are $181. The fixed costs are $430,000. If the firm wants to
brilliants [131]

Answer:

$6600

Explanation:

Given: Selling price= $250 per unit

          Variable cost= $181 per unit.

           Fixed cost= $430000.

           Expected Profit= $25400.

Let´s assume the number of units sold be "x".

Revenue (R) = 250\times x= \$250x

Cost of product (C)= \$ 181\times x+ \$ 430000

∴ Cost of product (C)= \$ 181x+ \$ 430000

Now, finding the number of unit sold.

Forming an equation for profit.

We know, Profit= Revenue-cost

⇒  \$ 25400= 250x- (181x+430000)

Opening parenthesis.

⇒ 25400= 250x- 181x- 430000

⇒ 25400= 69x- 430000

Adding both side by 430000

⇒ 455400= 69x

Dividing both side by 69

⇒ x= \frac{455400}{69}

∴ x= 6600 units

Hence, total number of units sold to earn $25400 is 6600 units.

     

           

6 0
3 years ago
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