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3 years ago

Look at the scenario Linear Production Possibility Frontier. What is the maximum number of pairs of socks Largetown can produce?

Business

1 answer:

LenaWriter [7]3 years ago

8 0

Answer:

A) 40

Explanation:

The chart is not very clear, but the information included is:

it takes four hours to produce one shirt
it takes two hours to produce one pair of socks

If the total number of labor hours is 80, then the maximum number of socks produced will = 80 hours / 2 hours per pair of socks = 40 pairs of socks

The total number of shirts produced would be 20.

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2 ways in which busisnsses may act ethically

hram777 [196]

Businesses can act ethically by being honest and fair

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3 years ago

Assuming a binding price floor, the more inelastic the supply and the demand curves are, the:1'smaller the shortage a price floo

KATRIN_1 [288]

Answer:

Option "3" is the correct answer.

Explanation:

Inelastic demand curve depict when there's no evident increase in demand due to an increase in price.

3 0

3 years ago

Read 2 more answers

Suppose the production function in medieval Europe is Y 5 K 0.5L0.5, where K is the amount of land and L is the amount of labor.

Sonbull [250]

Answer:

a) Y = 500

b) Wages: 2.5

Rental price: 2.5

c) labor Share of output: 0.370511713 = 37.05%

Explanation:

$Y = 4K^{0.5} \times L^{0.5}$

if K = 100 and L = 100

$Y = 5(100)^{0.5} \times (100)^{0.5}$

$Y = 50 \times 10$

Y = 500

wages: marginal product of labor = value of an extra unit of labor

dY/dL (slope of the income function considering K constant while L variable)

$ax^b = bax^{b-1}$

$Y = 5K^{0.5} \times L^{0.5}$

$Y' = 5K^{0.5} \times 0.5 L^{-0.5}$

$Y' = 2.5K^{0.5} \times L^{-0.5}$

$Y' = 2.5(\frac{K}{L})^{0.5}$

With K = 100 and L = 100

$Y' = 2.5(\frac{(100)}{(100)})^{0.5}$

Y' = 2.5

rental: marginal product of land = value of an extra unit of land

dY/dK (slope of the income function considering K variable while L constant)

$Y = 5K^{0.5} \times L^{0.5}$

$Y' = 2.5K^{-0.5} \times L^{0.5}$

$Y' = 2.5(\frac{L}{K})^{0.5}$

L = 100 K = 100

$Y' = 2.5(\frac{100}{100})^{0.5}$

Y' = 2.5

c) we use logarithmic properties:

$Y = 50 \times 10$

$log500 = log(50 \times 10)$

$log500 = log50 + log10$

50 was the land while 10 the labor

2.698970004 = 1.698970004 + 1

share of output to labor: 1/2.698970004 = 0.370511713

5 0

3 years ago

What are the key factors to launch a design business?

g100num [7]

Answer:

i think its help stay happy

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2 years ago

Gutierrez Company reported net income of $225,000 for 2017. Gutierrez also reported depreciation expense of $45,000 and a loss o

Anestetic [448]

Answer:

Gutierrez Company

Cash Flow statement

for the year 2017

Net Income 225,000

+ Depreciation 45,000

+ Decrease in receivable 15,000

+ Increase in payable 17,000

+ Decrease in prepaid expenses <u> 4,000 </u>

Net cash flow from operating activities <u>306,000</u>

Explanation:

Depreciation is an non cash expense so it will be added to the net profit for the calculation of cash flow from operating activities. Decrease in receivable, Increase in payable and decrease in prepaid expenses result in the inflow of cash. So, they are all added in the operating income value.

4 0

3 years ago