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Elenna [48]
3 years ago
13

We can show that a​ profit-maximizing firm will hire the number of workers such that the wage is equal to the value of the margi

nal product of labor.​ But, as the text showed in an earlier​ chapter, a​ profit-maximizing firm will produce the quantity of output such that price equals marginal cost. Are these two rules​ inconsistent?
Business
1 answer:
jok3333 [9.3K]3 years ago
8 0

Answer:

No, these two rules are not inconsistent.

Explanation:

A profit-maximizing firm will hire the number of workers such that the wage is equal to the value of the marginal product of labor.​

But, a​ profit-maximizing firm will also produce the quantity of output at the level where price equals marginal cost.  

But this does not mean that these two rules contradict or are not consistent. Hiring workers at the level where their wage is equal to the marginal product of labor helps the firm in reaching the point where the price of the product is equal to the marginal cost of production.

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If Patty Shoemaker estimates that her $400 weekly grocery bill will increase at an annual inflation rate of 5%, what should her
balu736 [363]

Answer:

the weekly grocery bill in 4 years is $486.2025

Explanation:

The computation of the weekly grocery bill in four years is shown below:

= Estimated amount × (1 + rate of interest)^number of years

= $400 × (1 + 0.05)^4

= $400 × 1.21550625

= $486.2025

hence, the weekly grocery bill in 4 years is $486.2025

We simply applied the above formula so that the correct value could come

And, the same is to be considered

6 0
3 years ago
Once expenses have been identified, they can be categorized as either fixed expenses or variable expenses.
AlexFokin [52]

Answer:

Once expenses have been identified, they can be categorized as either fixed expenses or variable expenses.

For example, your mortgage would be considered a __fixed__ expense, because _the total amount does not vary_. Conversely, grocery bills would be considered _variable_, because the actual amount is _varies_.

Explanation:

Fixed expenses are fixed in total within a relevant range.  The amount remains the same from one period to the next.  The element of the fixed expense that changes is the cost per unit and not the total amount.  On the other hand, variable expenses vary in total because of their quantities vary but their costs per unit remain fixed.

5 0
3 years ago
An example of an imputed value in the GDP is the:
exis [7]

Answer:

2. housing services enjoyed by homeowners

Explanation:

Imputed value is an estimated value for an object that is uncertain or inaccessible of the actual value.

The largest expense of the GDP accounts is the value of the services offered by the housing of the owner. The imputation is rendered so that the position in GDP of holders of housing is equal to that of tenants who are rent-paying.

8 0
4 years ago
A stock sells for $10 per share. You purchase 100 shares for $10 a share (i.e., for $1,000), and after a year the price rises to
dalvyx [7]

Answer:

300% returns

150% returns

100% returns

Explanation:

given data

stock sells = $10 per share

purchase = 100 shares

price rises = $17.50

solution

Profit per share is =17.5 - 10 = 7.5

Total profit is = 100 × 7.5 = 750

if here margin requirement is 25%

then here you invest = 100 ×10 × 25% = $250  

Percent of return = Profit ÷  Capital

return % = (750 ÷  250) × 100

and get return = 300%

and

if here margin requirement is 50%

then here you invest = 100 ×10 × 50% = $500  

Percent of return = Profit ÷  Capital

return % = (750 ÷  500) × 100

and get return = 150%

and

if here margin requirement is 75%

then here you invest = 100 ×10 × 75% = $750  

Percent of return = Profit ÷  Capital

return % = (750 ÷  750) × 100

and get return = 100%

7 0
3 years ago
Match the following terms to their definitions: 1. privatization 2. restructuring 3. agent 4. leveraged buyouts 5. underpricing
RUDIKE [14]

Answer:

1) UNDERWRITE involves the act of taking on any risk that might be related with the issue of a new security.

2. BEST EFFORTS is the responsibility of sharing a security without transferring the risk associated with the new issue from the company to the investors.

3. UNDERWRITING SYNDICATE involves a group of investors formed to share the risk of a security offering.

4.UNDER PRICING is the process of setting the price of a new security slightly below the market value to ensure a receptive sale.

5. AFTERMARKET is a secondary market where securities are traded after its initial offering to the public.

6.AGENT is one who sells or places an asset for another party.

7. SHELF REGISTRATION permits large companies to file one comprehensive statement with the Securities and Exchange Commission (SEC) outlining their financial plans for the next two years.

8. LEVERAGE BUYOUT occurs when either management or another investment group borrows the needed cash to rebuy all traded shares from the shareholders.

9. RESTRUCTURING involves the divisions and products are sold and assets redeployed into better yielding areas.

10. PRIVATIZATION is a situation Investors that take a company public, the investment bankers sell companies previously owned by governments.

8 0
3 years ago
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