Medicare is a federal health insurance program for US citizens who are about 65 of the age and older. Certain younger people with physical disabilities are eligible for Medicare as well. Keep in mind the program doesn’t cover the entire cost of medical treatment.
Answer:
1. 3 pounds of Vegetable
2. 5 Pounds of Vegetable
Explanation:
The question requires the calculation of Opportunity costs. This is the benefit foregone or benefit that can be derived from a next best option based on an individual's current choice.
The question is to calculate the Opportunity cost for John and George espcially as regards the production of two items. The first is Chicken and the second is Vegetables. It can also be provided in a given amount of time.
We can expect one pound of chcken to trade for at least........ pounds of vegetable but not more than ............. of vegetable
One pound of chicken has the opportunity cost of ......
Step 1: How many pounds of vegetable can John produce compared to pounds of chicken?
John can produce 40 pounds of Vegetable for 10 pounds of Chicken
Therefore, 1 pound of chickedn = 40 Pounds of Vegetable/ 10 pounds of Chicken
It means 1 pound of Chicken has the opportunity cost of 4 Pounds of Vegetable for John
Step 1: How many pounds of vegetable can George produce compared to pounds of chicken?
George can produce 25 pounds of Vegetable for 5 pounds of Chicken
Therefore, 1 pound of chicked = 25Pounds of Vegetable/ 5 pounds of Chicken
It means 1 pound of Chicken has the opportunity cost of 5 Pounds of Vegetable for George
Solution :
A firm hires labor till a point where the cost of hiring is equal to the value of the additional revenue it produces.
We know ,
the wage rate = cos of hiring an additional worker
the value of the additional revenue that the firm produces = price x (MPI) marginal product of the labor.
Therefore, the firm will hire when :
Wage = value of the additional revenue it generates
Thus, wage = price x (MPI) marginal product of the labor ...........(i)
Therefore, given :
wage of a worker = $ 45
Price = $ 12
So, 45 = 12 x MPI
MPI = 3.8
So the marginal product of employing three days of labor = 25-18/4-3 = 7
Marginal product of employing four days of labor = 30-25/4-3 = 5
So the 4th day produces less revenue than the cost that it generates.
So, the firm should hire 3 workers.
Answer:
For now, it is better to keep producing in house. If demand increases, Pottery Ranch must outsource some of the production.
Explanation:
Giving the following information:
The variable manufacturing overhead is charged to production at a rate of 63% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $3.51 and $4.73, respectively. Normal production is 28,300 curtain rods per year.
A supplier offers to make a pair of finials for $13.20 per unit.
Fixed costs are a sunk cost, therefore it is not taken into account.
Make in house:
Unitary cost= 3.51 + 4.73 + (4.73*0.63)= $11,22
Outsource:
Unitary cost= 13.20
For now, it is better to keep producing in house. If demand increases, Pottery Ranch must outsource some of the production.
This would be known as the recession phase of a business cycle meaning Demand begins to four and there is a steady decline in employment, prices and profits, income and output. there is a noticeable reduction in investments and The banks as well as the people attempt to obtain more liquidity so, credit contracts. Expansion of business pauses making stock markets fall. People begin to lose their jobs when orders are canceled. is increase in unemployment results in a harsh decline in income as well as aggregate demand. On the bright side, a period of recession amounts for only a short time
