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2 years ago

On the long-run aggregate supply curve,

Business

1 answer:

kirill115 [55]2 years ago

8 0

The long-run aggregate supply curve shows the relationship between price level and real GDP.

<h3>What is the supply curve?</h3>

It should be noted that the information is incomplete. Therefore, an overview will be given. The supply curve is a graphic representation of the correlation between the cost of a good or service and the quantity supplied for a given period.

In this case, in a typical illustration, the price will appear on the left vertical axis, while the quantity supplied will appear on the horizontal axis.

The long-run aggregate supply curve shows the relationship between price level and real GDP that would be supplied if all prices were fully flexible.

The position of the long-run aggregate supply curve is determined by the aggregate production function and the demand and supply curves for labor.

Learn more about supply curve on:

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What is a transferrable skill?

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Answer:A transferable skill is an ability or expertise which may be used in a variety of roles or occupations. Examples include communication, problem-solving and self-control.

Explanation: trust

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3 years ago

Use the following information to answer the next two questions: A company had the following transactions during September, the f

horsena [70]

Answer: 326,500

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3 years ago

The builder of a new movie theater complex is trying to decide how many screens she wants. Below are her estimates of the number

DochEvi [55]

Answer:

Part (a):

Make a table showing the value of the marginal product for each screen from the first through the fifth:

Solution:

The answer is attached.

Part (b):

How many screens will be built if the real interest rate is 5.5 percent?

Answer: 3 screens

Part (c):

How many screens will be built if the real interest rate is 7.5 percent?

Answer: 1 screen

Part (d):

How many screens will be built if the real interest rate is 10 percent?

Answer: 0 screens

Part (e):

If the real interest rate is 5.5 percent, how far would construction costs have to fall before the builder would be willing to build a five-screen complex?

Answer: $727,272.73(approx.)

Explanation:

Part (a):

Make a table showing the value of the marginal product for each screen from the first through the fifth:

Solution:

The solution is attached with working.

Part (b):

How many screens will be built if the real interest rate is 5.5 percent?

Solution:

3 screens

The interest cost of each screen = 5.5% x $1,000,000 = $55,000.

There are no other costs mentioned. The value of marginal product exceeds $55,000 for 3 screens.

Therefore, 3 screens should be built.

Part (c):

How many screens will be built if the real interest rate is 7.5 percent?

Solution:

1 screen

The value of the marginal product exceeds the interest cost (7.5% of $1,000,000, or $75,000) for only the first screen.

Thus, one screen will be built.

Part (d):

How many screens will be built if the real interest rate is 10 percent?

Solution:

0 screens

At 10% interest, the interest cost of a screen is $100,000, more than the value of the marginal product of even the first screen.

Thus, no screens will be built.

Part (e):

If the real interest rate is 5.5 percent, how far would construction costs have to fall before the builder would be willing to build a five-screen complex?

Solution:

The value of the marginal product of the fifth screen is $40,000. At an interest rate of 5.5%, building five screens is profitable only if 5.5% times the per-screen construction cost is no greater than $40,000.

Financial cost per screen = real interest rate x construction cost of per screen

$40, 000 = 5.5% x construction cost per screen Construction cost per screen = $40,000 ÷ 5.5%

= $727,272.73(approx.)

3 0

3 years ago

Place in order the events that occur in the short run when the Federal Reserve enacts expansionary monetary policy.

ololo11 [35]

CEquilibrium shifts always more money being a lower

8 0

3 years ago

"A cleaning company uses $10 of chemicals, $40 of labor, and $5 of misc. expenses for each house it cleans. After some quality c

Rus_ich [418]

Answer:

multifactor productivity = 8.3%

Explanation:

given data

Total cost for chemicals = $10

Total cost of labor = $40

Total cost of misc = $5

use of chemical = 50%

solution

first we get here total initial cost that is

total initial cost = 10 + 40 + 5

total initial cost = $55

and

Increase in cost of chemical is = 10 + (0.5) × (10)

Increase in cost of chemical = 15

so Total increase in cost will be

Total increase in cost = $15 + $40 + $5

Total increase in cost = 60

increase in cost % = $\frac{initial\ cost}{incresed\ cost}$ × 100

increase in cost % = $\frac{55}{60}$ × 100

increase in cost % = 91.67 %

change in multifactor productivity is = 100% - 91.7%

multifactor productivity = 8.3%

3 0

3 years ago