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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.

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Answer:

Here:

Explanation:

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total purchase cost = price of shares bought + broker fees total purchase cost = 24000 + 0.01*24000 =24240

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Net proceeeds = total selling cost - total purchase cost Net proceeds = 29065 - 24240 = 4825

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3 years ago
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What is net income?

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Profit before tax=sales-costs of sale-depreciation-interest expense

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profit before tax=$487,000-$263,000-$42,000-$26,000

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