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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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Between 2003 and 2005, there was huge growth in the market for premium blue jeans priced at $200 or more per pair. Popular magaz
zimovet [89]

Answer:

Following are the solution to the given question:

Explanation:

Huge demand increase inside the Blue Jeans market led to rising costs between 2003 and 2005. The contour of desire went right.

With pricing just above the previous level, the producers are motivated to create more and therefore to increase the demand side and shift its supply curve to the right.

Greater amounts supplied produced a surplus in blue jeans that could only be sold if the prices decreased to attract buyers (the supply side), creating a new balance at a clean cost.

6 0
3 years ago
What is a factor that increases the volatility of demand in industrial markets? Multiple Choice Professional buyers in the indus
emmasim [6.3K]

Answer:

Derived demand accelerates changes in markets.

Explanation:

Derived demand can be defined as the way in which the demand for a good or service tend to result from the demand for the related good or service and this occured when their is the demand for either good that are tangible or intangible goods where a market exists for both related goods and services.

In another word Derived demand occured in a situation where the demand for one good or service happens because of the want for another good or service Example is increase in the need for Shoes material or equipment because of the increase in the need for Shoes

because the factor of production by a company is dependent on the demand by consumers for the product produced by that company which is why the transition to become demand-driven is slowly occurring in many industries.

Hence, The factor that increases the volatility of demand in industrial markets is "Derived demand accelerates changes in markets"

8 0
3 years ago
On July 14 joseph invested $12000 in a fund that was growing at 5% compound semi annually
kramer

Answer:

$12,300

Explanation:

I will assume that Joseph invested in the fund on July 14, 2013.

We have to calculate the future value to March 15, 2014 (8 months later).

since the interest is compounded semi annually, it will earn interest on January  14, 2014.

Future value = $12,000 x (1 + 2.5%) = $12,300

since the fund is going to earn interests again on July 14, 2014, the value on march 14 is the same = $12,300

5 0
3 years ago
br company has a contribution margin of 40%. sales are $312,500, net operating income is $25,000, and average operating assets a
Klio2033 [76]

The company's return on investment  ROI would be 12.5%

What does a favourable return on investment mean?

The profit from an investment is divided by the investment's cost to determine the return on investment (ROI). When represented as a percentage, an investment with a profit of $100 and a cost of $100 would have a ROI of 1, or 100%. Generally speaking, a yearly ROI of around 7% or higher is regarded as a decent ROI for an investment in stocks. This also refers to the S&P 500's average annual return when inflation is taken into account of the company to increase the profit margin. 

To know more about ROI click on the link below:

brainly.com/question/15726451

#SPJ4

5 0
1 year ago
Traditional career development programs of the past focused on helping an employee advance ________.
saveliy_v [14]
Traditional career development programs of the past focused on helping an employee advance <span>by holding a series of jobs in a single organization.</span>

3 0
3 years ago
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