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Ira Lisetskai [31]
3 years ago
6

Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 worker

s it produces 90 units of output. Fixed cost of production are $6 and the variable cost per unit of labor is $10. The marginal product of the seventh unit of labor is 4. Given this information, what is the total cost of production when the firm hires 7 workers?
Business
1 answer:
kumpel [21]3 years ago
8 0

Answer:

Case 1:

When, Labor = 6 ;

Output = 90

Fixed Cost = $6

Variable cost per unit of labor = $10

∴ Total Variable Cost = $10 × 6 = $60

Total cost = Fixed Cost + Total Variable Cost

= $60 + $6

= $66

Case 2:

When, Labor = 7 ;

Let us assume the total output be 'x' , when firm hires 7 workers.

Marginal product( MP_{L}) of the seventh unit of labor = 4

i.e. MP_{L}= \frac{\delta TP}{\delta Q} = 4

\frac{\delta TP}{\delta Q} = 4

\frac{(x- 90)}{(7-6)} = 4

x = 94

Fixed Cost will remain the same , i.e. $6

Variable cost per unit of labor = $10

∴ Total Variable Cost = $10 × 7 = $70

Total cost = Fixed Cost + Total Variable Cost

= $70 + $6

= $76

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Your son is born today and you want to make him a millionaire by the time he is 50 years old. You deposit $50,000 in an investme
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Answer:

1000000= 50000 (1+ \frac{i}{1})^{1*50}

20 = (1+i)^{50}

20^{1/50} = 1+i

i = 20^{1/50} -1 = 0.0617

And if we convert this into % we got i = APR = 6.17 \%

See explanation below.

Explanation:

We assume that we have compounding interest.

For this case we can use the future value formula given by:

FV= PV (1+\frac{i}{n})^{nt}

Where:

FV represent the future value desired = 1000000

PV= represent the present value = 50000

i = the interest rate that we desire to find in fraction

n = number of times that the interest rate is compounding in 1 year, since the rate is annual then n=1

t = represent the number of years= 50 years

So then we have everything in order to replace and we got:

1000000= 50000 (1+ \frac{i}{1})^{1*50}

Now we can solve for the interest rate i like this:

20 = (1+i)^{50}

20^{1/50} = 1+i

i = 20^{1/50} -1 = 0.0617

And if we convert this into % we got i = APR = 6.17 \%

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Sheffield Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 a
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The journal entry to record the purchase of the raw materials by Sheffield Company is as follows:

Debit Purchases $1,031,600

Credit Accounts Payable $1,031,600

  • To record the purchase of the raw materials in 2021.

The December adjusting entry can be revised with:

Debit Estimated Liability $53,300

Credit Unrealized holding Loss $53,300

  • To reverse the December 31 adjusting entry.

<h3>What is an unrealized holding loss?</h3>

In this instance, the unrealized holding loss arose from the fact that the market value of the raw materials is less than the purchase amount because of the noncancelable commitment.

Thus, the unrealized holding loss arose as the difference between the market value and the purchase amount.

<h3>Data Analysis:</h3>

Purchases $1,031,600 Accounts Payable $1,031,600

Estimated Liability $53,300 Unrealized holding Loss $53,300

Thus, the entry to record the purchase is a debit to the purchases account and a credit to accounts payable.

Learn more about recording purchases at brainly.com/question/24179237

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