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tino4ka555 [31]
2 years ago
7

Why would a profit-maximizing firm pay its workers more than what workers are paid at other firms in the same market?

Business
1 answer:
Simora [160]2 years ago
3 0

A profit-maximizing firm pays its workers more than what workers are paid at other firms in the same market, this efficient wage decrease shirking, increase retention, higher quality recruits, and healthier employees

"Profit-maximizing firms pay their workers more than what workers are paid at other firms in the same market" What was the purpose behind this?

This efficiency wage is designed to reduce employee turnover, boost productivity and morale among employees, and enhance the pool of qualified job applicants. These goals may be attained by paying a salary rate above the going rate because doing so raises the opportunity cost of leaving or being dismissed. Paying an efficiency wage may actually result in lower labor expenditures for the company because acquiring and terminating staff can be expensive.

What does the efficiency wage theory suggest?

The efficiency wage hypothesis, often known as the notion of efficiency wages, contends that salary and worker productivity are positively correlated. In other words, a worker who is paid more will put in more effort and generate more output than one who is paid the wage determined by supply and demand.

Learn more about efficiency wage theory: brainly.com/question/13782323

#SPJ4

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Jared expects to charge $60 per hour for his industrial maintenance business during the following year. He expects to reach 50,0
Nataliya [291]

Answer:

Explanation:

He should work with the 50,000 hours estimate instead of the 40,000 in order to avoid shortage of funds during the business year

8 0
3 years ago
If the price of a product increases, the demand for the resource used in producing that product decreases.
valentina_108 [34]

Economists call this the law of demand. As the price of a product increases, the quantity demanded decreases (but the demand itself remains the same). If the price falls, the quantity demanded will increase.

Resource Prices – Rising resource prices lead to a decrease in supply or a leftward shift in the supply curve. Falling resource prices lead to an increase in supply or a rightward shift in the supply curve.

An increase in demand shifts the demand curve to the right and a decrease in supply shifts the supply curve to the left.

A decrease in demand leads to a decrease in the equilibrium price. Less quantity to deliver. An increase in supply leads to a  product decrease in the equilibrium price, all other things being equal. Demand increases.

Learn more about resources at

brainly.com/question/1046299

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6 0
2 years ago
At the beginning of 2018, England Dresses has an inventory of $140,000. However, management wants to reduce the amount of invent
Bad White [126]

Answer:

purchases = 160000

Explanation:

given data

beginning inventory = $140,000

amount of inventory on hand = $80,000

net sales = $400,000

gross profit rate = 40%

solution

we first Computation of cost of goods sold  hat is

Gross profit rate = \frac{gross profit}{net sales} × 100

= \frac{gross profit}{400000} = = \frac{40}{100}

= 100 Gross profit = 16000000

so

Gross profit = 160000

and

Cost of goods sold is = sales - gross profit

so

Cost of goods sold = 400000 - 160000

Cost of goods sold = 240000

and

Cost of goods sold = opening inventory + purchases - closing inventory  

so put here value

240000 = 140000 + purchases - 60000

so purchases = 160000

7 0
3 years ago
I need to write a balance sheet but I am having trouble with the format. can anyone please help?
vichka [17]
Answer & Explanation:
Most balance sheets are arranged according to this equation:

Assets = Liabilities + Shareholders’ Equity

The equation above includes three broad buckets, or categories, of value which must be accounted for:

1. Assets

An asset is anything a company owns which holds some amount of quantifiable value, meaning that it could be liquidated and turned to cash. They are the goods and resources owned by the company.

Assets can be further broken down into current assets and noncurrent assets.

- Current assets are typically what a company expects to convert into cash within a year’s time, such as cash and cash equivalents, prepaid expenses, inventory, marketable securities, and accounts receivable.
- Noncurrent assets are long-term investments that a company does not expect to convert into cash in the short term, such as land, equipment, patents, trademarks, and intellectual property.

2. Liabilities

A liability is anything a company or organization owes to a debtor. This may refer to payroll expenses, rent and utility payments, debt payments, money owed to suppliers, taxes, or bonds payable.

As with assets, liabilities can be classified as either current liabilities or noncurrent liabilities.

- Current liabilities are typically those due within one year, which may include accounts payable and other accrued expenses.
- Noncurrent liabilities are typically those that a company doesn’t expect to repay within one year. They are usually long-term obligations, such as leases, bonds payable, or loans.

3. Shareholders’ Equity

Shareholders’ equity refers generally to the net worth of a company, and reflects the amount of money that would be left over if all assets were sold and liabilities paid. Shareholders’ equity belongs to the shareholders, whether they be private or public owners.

Just as assets must equal liabilities plus shareholders’ equity, shareholders’ equity can be depicted by this equation:

Shareholders’ Equity = Assets - Liabilities

— Courtesy of Harvard Business School

I hope this helped! :)
6 0
4 years ago
The term applied to the periodic expiration of a plant asset's cost is
Burka [1]
<span>The term applied to the periodic expiration of a plant asset's cost over its life in a balanced and orderly way is depreciation. It is not process for valuation nor is process that results in gathering of cash. Land expenses are not subject to depreciation.</span>
4 0
4 years ago
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