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nadezda [96]
3 years ago
11

Suppose the wage increases to ​$200.00200.00 but that the firm chooses to keep using the same amount of labor and capital to pro

duce 200 units of output. Given this new set of factor prices ​(w​'equals=​$200.00200.00​, requals=​$100.00100.00​), how much have costs changed if the set of input choices remains at point​ A? ​$nothing. ​(Enter a numeric

Business
1 answer:
tekilochka [14]3 years ago
6 0

Question:

The question is incomplete. See the complete question below and the graph.

You are given the following data;

Cost = C = $12,000.00

w = $100.00 per unit of labor

r = $100.00 per unit of capital

These data are used to construct the isocost line (C) in the diagram to the right. Suppose the wage increases to $200.00 but that the firm chooses to keep using the same amount of labor and capital to produce 200 units of output. Given this new set of factor prices (w'=$200.00, r = $100.00), how much have costs changed if the set of input choices remains at point A? Enter a numeric response using a real number rounded to two decimal places.)

Answer:

Cost change = $6,000

Explanation:

Given Data:

Cost = C = $12,000.00

w = $100.00 per unit of labor

r = $100.00 per unit of capital

Calculating the cost incurred  at point A using the equation of iso-costline C¹, we have;

C = wl + rk

where;

C = total cost

w = price of labor = $100

l =  labor = 60 unit from the graph

k = capital = 60 unit from the graph

r = price of capital = $100

Substituting into the formula, we have

C = wl + rk

  = 100*60 + 100*60

  = 6000+6000

  = $12,000

For increase in wages(w= $200, r = $100) with same amount of labor and capital, the cost incurred becomes;

C = wl + rk

   = 200*60+100*60

  = 12,000 + 6000

  = $18,000

Therefore,

Cost change = 18000-12000

                    = $6,000

See the attached graph.

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SashulF [63]

Answer:

It is both qualitative data and primary data.

Explanation:

Qualitative data is data that is not expressed in numerical values. Kay & Maggie are asking for opinons in the survey and interviews. These opinons are not numbers, they are words, language, therefore, they are qualitative.

It is primary data because Kay & Maggie are collecting the information directly from the desired source, the customers, instead of collecting the data from a third party.

7 0
2 years ago
Whenever marginal cost is greater than average total cost, A. average total cost is rising. B. marginal cost is falling. C. aver
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Answer:

A. average total cost is rising.

Explanation:

Whenever marginal cost is more than average cost it means it costs more to produce a unit now compared to the average cost of the previous units. Lets assume that a company produces 3 units  of a good.

The first unit costs $1

The second unit costs $2

The third unit costs $3.

The average cost is (1+2+3)/3=2

Now if the marginal cost for producing a unit is more than the average cost for example if the marginal cost is 4, then this will mean that average total cost is rising. we can mathematically check this.

The first unit costs $1

The second unit costs $2

The third unit costs $3.

The fourth unit costs $4

Average cost= (1+2+3+4)/4=10/4=2.5

Here we see that the average cost increased from 2 to 2.5 because marginal cost was greater than average cost.

4 0
3 years ago
Suppose your company needs $13 million to build a new assembly line. Your target debt-equity ratio is .55. The flotation cost fo
natulia [17]

Answer:<em>True cost = \frac{cost of assembly}{1-weighted flotation cost }</em>

<em>=  \frac{13,000,000}{1- 0.049}</em>

<em>= $ 13,669,821.2</em>

Explanation:

Given :

Debt-Equity ratio = 0.55

Flotation cost for new equity = 6%

Flotation cost for debt = 3 %

∴ To compute the weighted flotation cost , we'll use the following formula:

Weighted Flotation cost =\left [ \frac{1}{1+Debt-Equity ratio}\times Flotation cost of equity \right ] + \left [ \frac{Debt-Equity ratio}{1+Debt-Equity ratio}\times Flotation cost of debt \right ]

=  \left [ \frac{1}{1+0.55}\times 0.06 \right ] + \left [ \frac{0.55}{1+0.55}\times 0.03 \right ]

= 0.0387 + 0.0106

= 0.04934 or 4.93%

The true cost of building the new assembly line after taking flotation costs into account is evaluated using the following formula :

True cost = \frac{cost of assembly}{1-weighted flotation cost }

=  \frac{13,000,000}{1- 0.049}

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3 0
3 years ago
Piere Imports uses the perpetual system in accounting for merchandise inventory and had the following transactionsduring the mon
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Answer:

<u>If records invoices at gross amounts</u>

October 2th

inventory    3,000 debit

    A/P                    3,000 credit

October 2nd

A/P              500 debit

      inventory           500 credit

October 17th

inventory       5,400 debit

      A/P                    5,400 credit

October 26th

A/P                5,400 debit

           Inventory          108 credit

           cash               5,292 credit

October 31th

A/P             2,500 debit

      Cash                 2,500 credit

<u>If records invoices at nets amounts</u>

October 2th

inventory    2,940 debit

    A/P                    2,940 credit

October 2nd

A/P              490 debit

      inventory           490 credit

October 17th

inventory       5,292 debit

      A/P                    5,292 credit

October 26th

A/P                5,292 debit

           cash               5,292 credit

October 31th

A/P             2,490 debit

Inventory         10 debit

      Cash                 2,500 credit

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A smart card looks like a credit card but it has a(n) ________ built into it
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It has a microchip built into it that you would insert into a machine instead of swiping it. 
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