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lyudmila [28]
2 years ago
6

Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and she can use 24 hours per day. what

is the market rate of substitution between leisure and income?
Business
1 answer:
Allushta [10]2 years ago
3 0

Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and she can use 24 hours per day. The Market rate of substituion between leisure & income is $8 per day.

Because the budget line FE describes the opportunities available to a worker who has $100 of nonlabor income per week, faces a market wage rate of $10 per hour, and has 110 hours of nonsleeping time to allocate between work and leisure activities This means that the person will choose the level of goods and leisure that lead to the highest possible level of the utility index given the limitations imposed by the budget constraint.  

Leisure is the time when you are free from work or other duties and can relax.

Limitations the act of controlling the size or extent of something the act of limiting something.

Budget is a spending plan based on income and expenses.

To know more about the Leisure here

brainly.com/question/1558173

#SPJ4

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Elmer Sporting Goods is getting ready to produce a new line of golf clubs by investing $1.85 million. The investment will result
Tems11 [23]

Answer:

The payback period for this project is 2.43 years.

Explanation:

Elmer Sporting Goods is getting ready to produce a new line of golf clubs by investing $1.85 million.

The investment will result in additional cash flows of $525,000, $812,500, and 1,200,000 over the next three years.

The payback period is the time it takes to cover the investment to be covered by returns.

The investment cost remaining in the first year

= $1,850,000 - $525,000

= $1,325,000

The investment cost remaining in the second year

= $1,325,000 - $812,500

= $512,500

The third year payback

= \frac{\$ 512,500}{\$ 1,200,000}

= 0.427

The total payback period

= 2.43 years

6 0
3 years ago
Suppose that demand for a product is Q = 1200 − 4P and supply is Q = −240 + 2P. Furthermore, suppose that the marginal external
eimsori [14]

Answer: 16 units more than social optimum.

DWL = dead weight loss = (1/2)*(Q* - Q°) 12 =96

Explanation:

Q=1200 - 4P and Q=-240 + 2P

In a free market quantity demand =quantity supplied

1200 -4P = -240 +2P

P =240

Sub P

Q* = 240

Socially optimal quantity is

Marginal social benefit (MSC)= marginal social cost(MSC), including external damage =MEC

MPC= marginal private cost =inverse of supply function

MPC = (1/2)*Q + 120

MEC=12

MSC =(MPC +MEC) = (1/2)Q +120 +12

MSC= MPB where MPB is marginal private benefit = inverse of demand functn

MPB = 300 -(1/4)Q

(1/2)Q + 132 =300 - (1/4)Q

Q° = 224

Difference btw Q* & Q° = 16 units more than social optimum.

DWL = dead weight loss = (1/2)*(Q* - Q°) 12 =96

4 0
3 years ago
The following are selected 2017 transactions of Sean Astin Corporation.
Vadim26 [7]

Answer and Explanation:

The Journal entries are shown below:-

A. a. Purchase Dr, $50,000

           To Accounts payable $50,000

(Being purchase of inventory is recorded)

b.Accounts payable Dr, $50,000

            To Notes payable $50,000

(Being issuance of notes is recorded)

c.Cash Dr, $50,000

  Discount on notes payable Dr, $4,000

             To Notes payable $54,000

(Being amount borrowed from bank and issued notes is recorded)

B. a. Interest expenses Dr, $1,000 ($50,000 × 8% × 3 ÷ 12)

            To Interest payable $1,000

(Being interest expenses is recorded)

b. Interest expenses Dr, $1,000 ($4,000 × 3 ÷ 12)

                 To Discount on notes payable $1,000

(Being interest expenses is recorded)

C. The Computation of interest-bearing note and the zero-interest-bearing note is shown below:-

Interest-bearing note = Note payable + Interest payable

= $50,000 + $1,000

= $51,000

Zero-interest-bearing note = Note payable - Discount

= $54,000 - ($4,000 - $1,000)

= $54,000 - $3,000

= $51,000

8 0
3 years ago
When the company pays rent expense for the current month, what is the effect on the accounting equation for that company?
GREYUIT [131]

Answer:

decrease the stockholder equity and decrease in assets

Explanation:

As we know, the accounting equation is  

Total assets = Total liabilities + stockholder equity

In the given case,  

The rent is paid for the current month, so the journal entry would be

Rent expense A/c Dr XXXXX

    To Cash A/c XXXXX

(Being rent is paid)

So it decreases the stockholder equity as it includes the income and expenses part and it decreases in assets as it reduces the cash balance

3 0
3 years ago
Developing countries fall into two categories, moderately developed and less developed. Which of the following is not classified
ozzi

Answer:

Thailand

Explanation:

6 0
3 years ago
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