Answer:
Reduce the labor employed.
Explanation:
Generally the profit maximizing level of activity is where the marginal revenue product of labor is equal to or greater than the wage rate paid. This means that the 5th worker is actually not generating any positive revenue for the farmer as its contribution to revenue is,
Total contribution = Marginal product * price = 3 * 2 = $6
Where as wage paid is $10 thus it gives a contribution of 6-10 = -$4.
Thus the farmer is advised to reduce labor employed.
Hope this helps.
Answer:
E.In equilibrium, the expected return on Stock A will be greater than that on B.
Explanation:Beta is a measure used in the stock marketing to describe how volatile a stock is compared the the overall market. A stock with a Beta greater than one signifies that a share is more volatile than the overall market, while a Beta less than one signifies that the market is more volatile than the stock.
IN EQUILIBRIUM, STOCK A WITH A BETA GREATER THAN ONE WILL BE MORE PROFITABLE AND GENERATE MORE INCOME THAN STOCK B WHICH HAS A LOWER BETA THAT IS LESS THAN ONE.
Answer:
$41.69.
Explanation:
P9 = Next dividend / Required rate - Growth rate
P9 = $5 / 8% - 2%
P9 = $5 / 6%
P9 = $5 / 0.06
P9 = $83.33
So, the stock price for 9th year is $83.33
Current stock price = P9 / (1 + Required rate of return)
Current stock price = $83.33 / (1+0.08)^9
Current stock price = $83.33 / (1.08)^9
Current stock price = $83.33 / 1.9990046271
Current stock price = 41.68574643115692
Current stock price = $41.69
Therefore, the current stock price is $41.69.
If labor costs are 60 percent of production costs, then a 15 percent increase in wage rates would increase production costs by <u>9 percent.</u>
<h3>
What are labor costs?</h3>
- The total of all employee wages, employee benefits, and payroll taxes paid by an employer constitutes the labor costs. Direct and indirect (overhead) labor costs are separated.
- While indirect costs are related to labor costs, such as personnel who maintain industrial equipment, direct costs include wages for the employees who make a product, including those on an assembly line.
- While indirect costs are related to support labor, such as personnel who maintain industrial equipment, direct costs include wages for the employees who make a product, including those on an assembly line.
- The price of goods or services may fluctuate away from their genuine cost if labor costs are poorly allocated or evaluated, which could hurt earnings.
To learn more about labor costs with the given link
brainly.com/question/5427701
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Goverment spending is the ansewer i belive
