1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
A monopolistic competitive firm is currently charging a price of $10 and producing 12,000 units/month. It faces monthly fixed co
gizmo_the_mogwai [7]

Answer:

either the selling price decreases or the total output decreases

Explanation:

The firm's income statement:

total sales revenue =            $120,000

minus total variable costs = ($72,000)

<u>minus total fixed costs =       ($15,000)  </u>

net profit =                             $33,000

The long run equilibrium for a monopolistically competitive firm occurs when the firm is making no economic profit since it is charging a price =  average total cost.

In this case the average total cost per unit = $6 per unit + ($15,000 / 12,000 units) = $7.25 per unit

Since the firm is currently charging a higher selling price than average total cost ($10 > $7.25), one or two things might happen in the long run:

  1. selling price will decrease
  2. output will decrease
5 0
3 years ago
The Adjusted Trial Balance section of the worksheet for Van Zant Janitorial Supplies follows. The owner made no additional inves
Tasya [4]

Answer:

\left[\begin{array}{ccc}Account&DEBIT&CREDIT\\$Cash&18,900&-\\$Account\: Receivable&60,100&\\$Allowance \: doubful \: accounts&&150\\$Inventory&186,500&\\$Supplies&7,170&\\$Prepaid Insurnace&3,090&\\$Equipment&51,300&-\\$Acc  \: Dep \: Equipment&-&18,100\\$Accounts \: Payable&&9,000\\$SS \: tax \: payable&&1420\\$Medicare \: tax \: payable&&340\\$Capital&&298,050\\&327,060&327,060\\\end{array}\right]

Explanation:

The sales, expenses, income summary and drawings accounts will be closed therefore will not be part of the post-closed trial balance.

Thew capital Account will suffer the net change of all these account thus, we can list the assets and liabilities and then, solve for Capital by the difference:

Assets = Laibilities + Equity

327,060 = 150 + 18,100 + 9,000 + 1,420 + 340 + Capital

Capital = 327,060  - (150 + 18,100 + 9,000 + 1,420 + 340)

Capital = 298,050

3 0
3 years ago
Sunshine's Organic Market sells organic produce. Assume that labor is the only input that varies for the firm. The store manager
frosja888 [35]

Answer: Option (d) is correct.

Explanation:

Correct option: For the 10th worker, the marginal revenue product is $120 per day.

If she hires 9 workers then the store can sell 200 pounds of produce per day

If she hires 10 workers then the store can sell 230 pounds of produce per day

Extra units produce from hiring 10th worker = 230 - 200 = 30 pounds of produce per day

Store earns = $4 for each pound

Therefore, the marginal revenue product for the 10th worker = selling price of each pound × Extra units produce from hiring 10th worker

= $4 × 30

=$120

4 0
3 years ago
You are reading product reviews posted online by consumers. Which external information source are you using?
irakobra [83]
The answer is E. Consumer Report
5 0
3 years ago
Read 2 more answers
A company switched from the cash basis to the accrual basis for recognizing warranty expense. The unrecorded liability for warra
Murrr4er [49]

Answer:

Report a prior period adjustment decreasing retained earnings by $1,365,000.

Explanation:

Going by the question we can derive that $2,100,000 is the prior period's warranty. Consequently, it will be charged to the current year's earnings following the deduction of tax, 35%.

(2,100,000 *65) /100 = $1,365,000

This above calculation is so because Under the accrual basis of accounting...operating expense are reported on the income statement in the particular period when they took place or when they expire

4 0
3 years ago
Read 2 more answers
Other questions:
  • What are the two dominant manufacturers of processors for personal computers?
    11·1 answer
  • Suppose the following transactions occur during the current year:
    11·1 answer
  • Basic Company uses activity-based costing. Assume the predetermined overhead allocation rates are $0.90 per machine hour for mix
    10·1 answer
  • Difference between money paid to and money received from other nations in trade is called balance of trade.
    6·2 answers
  • Donna manages the service desk and makes routine decisions related to customer refunds and merchandise returns. Donna also overs
    5·2 answers
  • The law of supply relates to opportunity cost because:__________
    14·2 answers
  • Purchase goods from Krishna for RS.10000 journal<br>​
    5·1 answer
  • Which accurately describes the terms of this mortgage? Check all that apply.
    8·1 answer
  • The clerical and editorial employees in a publishing house need to be at their desks by 8:00 AM and follow a set of precise proc
    15·1 answer
  • is the area of business that deals with how a company conducts its business and implements controls to ensure proper procedures
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!