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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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Indicate what components of GDP (if any) each of the following transactions would affect.
kvv77 [185]

Answer:

It will fall under Consumption if it is a commodity or non-capital good purchased.

It will fall under Investment if it is a capital good that was sold or purchased.

It will fall under Government Spending if the Government bought or paid for it.

It will fall under Net Exports if it involves the purchase of goods from another country or the sale of goods to another country.

You buy a new Toshiba computer  - CONSUMPTION AND NET EXPORTS.  

Toshiba is a Japanese Company.

Ford manufactures a Focus and sells it to Avis, the car rental company. INVESTMENT.

It becomes a capital good to Avis.

Dell sells a desktop computer from its inventory to the Johnson family . - CONSUMPTION and INVESTMENT.

The Desktop is considered a capital good as it can be an investment by the family to produce goods or services.

Aunt Jane buys a new house from a local builder.  INVESTMENT

Housing is a capital good.

The federal government sends your grandmother a Social Security check. - TRANSFER PAYMENT which means it is not to be included in GDP.

Texas hires public middle school teachers .  - GOVERNMENT SPENDING.

Texas will be spending to pay teacher's salaries.

You pay a domestic plumber for fixing a leak in your bathroom.  - CONSUMPTION.

Uncle Paul pays a domestic contractor for renovating his home - CONSUMPTION.

This is housing but it involves buying goods to change the appearance of the house not buying the house itself.

6 0
3 years ago
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Scilla [17]

Answer: It is A. Accounts Receivable.

4 0
2 years ago
Spears Co. had net sales of $53,404 million. Its average total assets for the period were $16,302 million. Spears' total asset t
liraira [26]
Given:
net sales = 53,404,000,000
Average total assets = 16,302,000,000

Total asset turnover is calculated by divided net sales by the average total assets.

Total asset turnover = net sales / average total assets 
T.A.O = 53,404,000,000 / 16,302,000,000
T.A.O = 3.2759 OR 3.3

The total asset turnover indicates the company's ability to efficiently deploy its asset in generating revenue. 
7 0
3 years ago
When Get the Glare Out needed some information about the potential market for its product, the marketing team looked to the Inte
Romashka [77]

Answer:

secondary data.

Explanation:

Market research can be defined as a strategic technique which typically involves the process of identifying, acquiring and analyzing informations about a business. It involves the use of product test, surveys, questionnaire, focus groups, interviews, etc.

Secondary market research can be defined as a method designed to determine the demographics of a particular target market.

A secondary data can be defined as any form of data that has been obtained or collected earlier by someone else through primary sources for their own purpose and made readily available for other researchers to use. Thus, a secondary data is a type of data that has been previously obtained or collected.

In this scenario, the type of information the marketing team was using is referred to as secondary data because it looked to the Internet to find industry trends and at the market for eyewear products, which uses the same technology that is used in manufacturing its self-darkening windshield.

In conclusion, a secondary data is typically reliant or based on the primary source of information and as such it isn't a first hand experience.

4 0
3 years ago
In a process cost system, the application of factory overhead usually is recorded as an increase in?
vredina [299]

In a process cost system, the application of factory overhead usually is recorded as an increase in work in process inventory control.

<h3>What is the process costing system?</h3>
  • When a large number of similar products are manufactured, a process costing system accumulates costs.
  • A process costing method is used by any large-scale firm who produces huge quantities of identical commodities.
  • A petroleum refinery is a perfect example of a process costing environment since it is hard to trace the cost of a specific unit of oil as it passes through the refinery.

learn more about costing system refer:

brainly.com/question/26515102

#SPJ4

5 0
2 years ago
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