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NISA [10]
3 years ago
15

A firm produces output using capital and labor. The​ firm's marginal product of labor ​(MP Subscript Upper L​) is 40 and its mar

ginal product of capital ​(MP Subscript Upper K​) is 28. Suppose the wage per unit of labor​ (w) is ​$6.00 and the cost per unit of capital​ (r) is ​$3.00. Is the firm minimizing the cost of​ production? What should the firm​ do, if​ anything, to produce the same level of output at lower​ cost? The firm
Business
1 answer:
Anika [276]3 years ago
6 0

Answer:

a. No, the firm is not minimizing the cost of production.

b. The firm should continue to increase the units of labor by reducing the unit of capital until when the ratio of Marginal product of labor to Marginal product of capital of is equal to the ratio of w to r.

Explanation:

a. Is the firm minimizing the cost of​ production?

The firm minimizing the cost of​ production where:

Marginal product of labor / Marginal product of capital = w / r

From the question, we have:

40 / 28 = 6 / 3

1.43 = 2

Since the ratio of Marginal product of labor to Marginal product of capital of 1.43 is not equal to the ratio of w to r, the firm is not minimizing the cost of production.

b. What should the firm​ do, if​ anything, to produce the same level of output at lower​ cost?

The firm should continue to increase the units of labor by reducing the unit of capital until when the ratio of Marginal product of labor to Marginal product of capital of is equal to the ratio of w to r.

The closest point at which this will happen is when the Marginal product of labor is 45 and Marginal product of capital is 23 where we have:

45 / 23 = 1.96, or 2 approximately.

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A stock's price fluctuations are approximately normally distributed with a mean of $104.50 and a standard deviation of $23.62. Y
denpristay [2]

Answer:

$ 74.23

Explanation:

We are given the following:

mean, μ = $ 104.50

standard deviation, σ = $ 23.62

Using the z-score table, we have

P(Z < z) = 10%  (since we are evaluating lowest 10% of values)

hence P(Z < z) = 0.10

P(Z < -1.282 ) = 0.10

z = -1.282  (this evaluates to 0.1 on the z-score table)

Using z-score formula,

x = z *σ + μ

substituting the values,

x =- - 1.282 * 23.62 + 104.50

= 74.23

The most for the stock is $ 74.23

6 0
3 years ago
Which of the following is not an advantage of using conventional crude oil as an energy source? a.ample supply for several decad
Annette [7]

Answer:

The correct answer is letter "D": environmental costs included in market price.

Explanation:

Oil and other resources like natural gas are used as fuel and energy sources. However, <em>the environmental cost of extracting them is not included in the market price</em>. If that would happen, prices of those sources would not be accessible to regular consumers.  

The exploitation of oil emits methane which is a gas even more harmful to the environment than carbon dioxide. Governments in most cases regulate the oil exploitation considering the environmental impact of that activity.

3 0
3 years ago
The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020:
kumpel [21]

Answer:

Explanation:

Please see attached file .

Download docx
5 0
3 years ago
Baldwin Company incurred and recorded an expense for material costs that have not yet been paid as of year-end. On the balance s
Tema [17]

Answer:

It will be reported as accrued expenses (c)

Explanation:

Accrued expenses represents amount owed for either serviced that has been enjoyed or goods that have been delivered but yet to be paid for.

Income statement is prepared on accrual basis, hence, these expenses will be recognized in the current period and matched with revenues generated.

4 0
2 years ago
Eliza has a policy that allows her to deduct the premiums she pays that exceed 10% of her adjusted gross income. Once she turns
Umnica [9.8K]

Answer:

Qualified Long-Term Care.

Explanation:

Qualified Long-Term Care includes services that are required for diagnostic, preventive, therapeutic, curing, treating, mitigating, and personal care services that is given to a person that is chronically ill.

A person that is chronically ill is qualified for this insurance plan.

Because of this policy that is used by Eliza she can deduct the premiums she pays that exceed 10% of her adjusted gross income. Once she turns 65, she can deduct the premiums that exceed 7.5% of her adjusted gross income.

6 0
2 years ago
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