1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
11Alexandr11 [23.1K]
3 years ago
11

To maximize profits, firms produce an output where marginal product of labor per dollar equals the marginal product of capital p

er dollar. Assume that the cost of labor is $20 an hour and its marginal product is 40. What should the marginal product of capital be if we assume the cost of capital of $40 an hour?
Business
1 answer:
STALIN [3.7K]3 years ago
7 0

Answer:

$80

Explanation:

In this company, every dollar spent in labor has equal marginal product than every dollar spent in capital.

If we spent an additional $20 in labor and the marginal product output is $40, it is a 1:2 relationship (for every dollar spent in labor we get $2 of product output).

If the company spends $40 in capital, if it has the same marginal product output as labor (1:2 relationship), then its marginal product output will be $80.

You might be interested in
The market situation of a monopolistic competitor is made more complex than our simple revenue-and-costs graphs would suggest, b
zhannawk [14.2K]

Answer:

The answer is price, product, and advertising.

Explanation:

The market situation of a monopolistic competitor is made more complex than our simple revenue-and-costs graphs would suggest, because the firm in reality juggles three decisions: price, product, and advertising.

3 0
2 years ago
Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point below that PPF. Assuming that th
qaws [65]

Answer:

The correct answer is: a new law that interferes with economic efficiency.

Explanation:

A production possibilities frontier shows all the points where production is efficient. The resources are being completely employed. The points above the frontier are unattainable. The points below the frontier are attainable but inefficient.

If there is a movement from the frontier to a point below it. This means inefficient allocation of resources. It can happen because of some law interfering in efficient allocation of resources.

3 0
3 years ago
Jeanine, the operations manager of an auto dealership, has been redesigning operations. She feels there are many places where th
Pachacha [2.7K]

Answer: If i am the general manager of the organization i will try to make a survey about customer relation in other competitive organization before i can conclude whether it is wise to cut down cost through removing giving out free gifts to customers like the free pop corn, coffee etc. Customers will choose other organizations where they can get the same quality service and other benefits especially in a perfectly competitive market. Rather i will suggest more profit can be made by slightly increasing the cost of services rendered to customers from which the cost of the freebies can be regained.

Explanation:Customer's satisfaction and profit maximization are the two main objectives of a firm. It is only when an organization is able to maintain good customer relationship with their customers that profit can be maximized regardless of how efficient their other services are.

4 0
3 years ago
Read 2 more answers
Titanic Roofing Company has estimated the following amounts for its next fiscal​ year: Total fixed costs $ 840 comma 000 Sale pr
Nina [5.8K]

Answer:

Operating income increases by $40,000.

Explanation:

Given that,

Total fixed costs = $840,000

Sale price per unit = $60

Variable cost per unit = $30

Additional amount spend on advertising = $35,000

Sales volume would increase by 2,500 units.

Contribution margin:

= Sales - Variable costs

= $60 - $30

= $30 per unit

Increase in operating income:

= Increase in contribution margin - Increase in Fixed costs

= ($30 × 2,500 units) - $35,000

= $75,000 - $35,000

= $40,000

3 0
3 years ago
Suppose a self-regulating economy is in a recessionary gap at the time the Fed enacts expansionary monetary policy. Furthermore,
anzhelika [568]

The combination of expansionary monetary policy and a self-regulating economy will cause real GDP will rise to the level above natural real GDP and the recessionary gap would hence turn into an inflationary gap situation.

<h3>What do you mean by monetary policy?</h3>

Monetary Policy refers to the control of the quantity of money available in an economy through which new money is supplied.

The self-regulating economy experiences a recessionary gap. The real GDP is less than the level of natural real GDP. The gap is been corrected by the rightward shift in the short-run aggregate supply curve.

Due to interplay, real GDP will rise to the level above natural real GDP and the recessionary gap turn into an inflationary gap.

Learn more about Monetary policy here:

brainly.com/question/3817564

#SPJ1

8 0
2 years ago
Other questions:
  • Libby bought 250 stocks of a company named Xylet last year. Xylet’s total earning for the year is $ 4million and it has 1,000,00
    13·1 answer
  • While walking along the river, Joshua thought of a brilliant idea for getting into the yacht business. Which idea-getieruur
    14·1 answer
  • Cash Sales Credit Sales January $ 50,000 $ 150,000 February $ 55,000 $ 170,000 March $ 43,000 $ 130,000 April $ 38,000 $ 123,000
    7·1 answer
  • For a Global Strategy, Group of answer choices products tend to be customized to the local market. strategic decisions are decen
    6·1 answer
  • 1. What is one of the things the Federal Reserve System does? (1 point)
    5·1 answer
  • In 2003, Congress passed a substantial cut in income taxes. The Federal Reserve also substantially lowered interest rates. How c
    11·1 answer
  • The CCCS aids families by:
    10·1 answer
  • Last month when Holiday Creations, Inc., sold 41,000 units, total sales were $282,000, total variable expenses were $214,320, an
    11·1 answer
  • You have been tasked with advising the dictator of a nation over what he should do to increase the countries GDP. He suggests pr
    14·1 answer
  • What statements are accurate about growth rate in assets? (select all that apply)
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!