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2 years ago

is derived at the point where the marginal revenue product of labor is equal to the marginal factor cost of labor. quizlet

1 answer:

8 0

The profit maximization is derived at the point where the marginal revenue product of labor is equal to the marginal factor cost of labor.

Reason :

The profit maximization level is the point at which marginal cost equals marginal revenue. In this case, the marginal cost of labor is the labor wage. Thus, the profit maximization point for the employer is the point at which wage equals the marginal revenue product of labor.

What is the marginal revenue product of labour equal to?

The marginal revenue product of a worker is equal to the product of the marginal product of labor (MPL) and the marginal revenue (MR) of output, given by MR×MPL = MRPL. This can be used to determine the optimal number of workers to employ at an exogenous determined market wage rate.

What is the derived demand of labor curve?

The firm's demand for labor is a derived demand; it is derived from the demand for the firm's output. If demand for the firm's output increases, the firm will demand more labor and will hire more workers. If demand for the firm's output falls, the firm will demand less labor and will reduce its work force.

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Lucky Company's direct labor information for the month of February is as follows: Actual direct labor hours worked (AQ) 60,000 S

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Answer:

$14.4 per hour

Explanation:

Given the above information, the standard direct labor rate per hour

is computed as

Standard direct labor rate per hour

= Total standard direct labor cost / Total standard direct labor hours worked

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= $900,000 / 62,500

= $14.4 per hour

Therefore, the standard direct labor rate per hour is $14.4

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3 years ago

Distributor packages and sells two types of products, A and B. The respective sales prices for the products are $10 and $5. The

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Answer:

Maximize 10A + 5B, such that, A >= 0, B >= 0, A + B <= 1000, 2A + 5B <= 5000

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There are two aspects of the equation, one pertains to the storage capacity related to the Selling prices of A and B

The other one relates to the labor hours of A and B

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3 years ago

Iron Man Foundry produces multiple products, one of which is casting a hose nozzle. The daily demand for these nozzles is 1,000

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Answer: 0.48 minutes

Explanation:

Takt time = Net time available / Daily demand

Net time available is number of minutes in a shift so:

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3 years ago

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Answer: Market penetration

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A paragraph explaining the role, markets and competitive advantages of a corporation; a brief written statement of objectives and principles of your organization is called its mission.

Thus, market penetration can only help in increasing market share and is not used for nay structural change leading to change in mission. Thus, we can conclude that the correct option is C.

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3 years ago

An unfavorable production-volume variance ________. A. is not a good measure of a lost production opportunity B. indicates tha

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Answer:

d) measures the amount of extra fixed costs planned for but not used

Explanation:

An unfavorable production-volume variance <u>measures the amount of extra fixed costs planned for but not used</u>. As per production-volume variance extra fixed costs planned for but not used has unfavorable production-volume variance.

When production-volume variance is unfavorable, that means the fixed cost are allocated on lesser number of manufactured units, hence it indicates that the fixed costs are not controlled well.

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3 years ago