Answer: No. She turns away business when the cost of an additional unit exceeds the income from it.
Explanation:
In order to maximize production, the optimal point at which Hester should wash cars is the point where marginal revenue equals marginal cost. Marginal cost should not be above marginal revenue because it would mean that a marginal loss is being made.
At the 101st car, Hester would make a marginal loss of $0.05 because the cost of $10.05 to wash exceeds the revenue of $10.00 that she charges the customer. She should therefore not accept this or additional business because it will lead to her incurring losses.
Answer: $324,800
Explanation:
It is a general Principle that when calculating income tax expense, that the Extraordinary loss is treated separately because it is not a usual thing.
The income gained from changing the Accounting principle is not included as well.
The Taxable income to be recorded therefore is,
Taxable income = Income + Gain on disposal - Unusual loss (due to its infrequency)
Taxable income = 928,000 + 32,000 - 148,000
Taxable income = $812,000
Tax expense would therefore be,
= 812,000 * 40%
= $324,800
$324,800 is the amount of income tax expense Arreaga would report on its income statement.
It will decrease
because the marginal productivities of workers will decrease. Diminishing marginal product occurs when the
marginal product of an input goes down as the quantity of the input goes up. The transformation in product resulting from
employing one more unit of a particular input for instance, the change in
output when a firm's labor is mark up from five to six units, assuming that the
mass of other product are kept constant is
called The input of marginal product or marginal physical product.
Answer:
$2.8 billion per year
Explanation:
Currently the amount of surplus milk in the US is really high since the demand per capita for milk has decreased by 40% in the last 50 years. Excess milk is turned into cheese since it doesn't last very long, and the current amount of surplus cheese is 1.4 billion pounds.
If yous need on average 4 pints of milk per pound of hard cheese and 2 pints per pound of soft cheese, that means that the total surplus milk production is between 2.8 and 5.6 billion pints.
If the government is going to purchase that excess milk, then it is going to need at least $2.8 billion per year.
