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Nat2105 [25]
3 years ago
5

Oscar's Flower Shop maximizes profits by hiring four workers in a perfectly competitive labor market. The workers and their valu

e of the marginal product of labor are Noe, $40; Barbara, $35; Calvin, $27; and Diana, $15. According to the marginal productivity theoryof income distribution, which of the following statements is TRUE?
A)In equilibrium, each worker is paid his or her value of the marginal product of labor.
B)Each worker is paid a wage equal to the highest value of the marginal product of labor(i.e., $40).
C)Each worker is paid $15.
D)We need to know the product price before we can figure out the wage rate.
Business
1 answer:
MissTica3 years ago
7 0

Answer: A. In equilibrium, each worker is paid is or her value of marginal product of labour.

Explanation:

Marginal productivity of income distribution refers to the additional revenue derived from the marginal unit of product produced and that wages should be equal to the marginal revenue derived from the production of additional or marginal product and this is achieved at equilibrium.

The theory also implies that workers should not be paid below or above the marginal revenue derivable from marginal product which implies they cannot be paid $15 or $40, moreover the product price is not a determinant of wages rate.

You might be interested in
A firm's good reputation for quality customer service is categorized as its _____
Inga [223]
The answer for this question is: Intangible resource
Intangible resource is a type of resource owned by a company that cannot be measured by number and do not have physical form.
Another example for an intangible resource is: employee's loyalty, Human Development within the company,  employee's motivation, etc.
8 0
3 years ago
rippett Industries manufactures cleaning products. During the year, the company spent $600,000 on chemicals and $728,000 on conv
Andru [333]

Answer:

The manufacturing overhead cost during the year=$128,000

Explanation:

The manufacturing overhead costs can be calculated using the formula below;

O=C-M

where;

O=manufacturing overhead costs

C=conversion costs

M=material costs

In our case;

O=unknown

C=$728,000

M=$600,000

replacing;

O=728,000-600,000=128,000

O=128,000

The manufacturing overhead cost during the year=$128,000

5 0
2 years ago
To adjust debt and institute a repayment plan, Bianca-who is not a corporation, a partnership, ora family farmer or fisherman-ma
madreJ [45]

Answer:

Correct answer is (C) a repayment plan.

Explanation:

Repayment plan is a method of payment of loan mostly in monthly payment that is agreed between the borrower and the lender and it is based on the interest rate on which the loan will be paid.

Since the Bianca is not a corporation, a partnership, ora family farmer or fisherman, he can only seek relief through repayment plan.

6 0
2 years ago
Most home insurance policies cover jewelry for $1,000 and silverware for $2,500 unless items are covered with additional insuran
raketka [301]

Answer:

$8,200

Explanation:

The amount of asset that is not covered under the insurance policy would not be claimable so if the amount of insurance policy that covers jewelry of worth $1000 and silverware of worth $2,500 then the total claimable insurance would be $3500 ($1000 for both Jewelry and $2500 for silverware).

The jewelry stolen is worth $5200 and out of it $4200 is not claimable because $1000 of this is covered under the insurance policy. Likewise the silverware worth of $6500 has been stolen of which $4000 is not claimable because $2500 of this is covered under the insurance policy.

The claim that would be not covered under the insurance policy would be:

Non claimable insurance amount = ($5,200 - $1,000) + ($6,500 - $2,500)

= $8,200

7 0
2 years ago
Pauline Found​ Manufacturing, Inc., is moving to kanbans to support its telephone​ switching-board assembly lines. Determine the
Debora [2.8K]

Answer:

Kanban container size = 73

Number of kanbans needed = 5

Explanation:

Kanban container size (Q):

Q = SQRT [(2 x D x S) / H x (1 - d/p)]

where,

D = Annual demand  

S = Setup cost

H = Holding cost

d = Daily usage

p = Daily production

Putting the given values in the above formula,

CONTAINER SIZE = SQRT ((2 * ANNUAL DEMAND * SETUP COST) / (HOLDING COST * (1 - (DAILY USAGE / DAILY PRODUCTION))))

Q = SQRT [(2 x 4,000 x $30) / $125 x (1 - 16/25)]

Kanbans container size = 73 units  (Rounding off to the nearest whole number)

NUMBER OF KANBANS = DEMAND DURING LEAD TIME + SAFETY STOCK / SIZE OF CONTAINER

K = ((16 * 16) + (4 * 25) / 73 = 5

4 0
2 years ago
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