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3 years ago

According to the marginal productivity theory of income

Business

1 answer:

Anna71 [15]3 years ago

5 0

Answer:

The income received by an individual who supplies labor services equals the incremental benefit generated to the firm by the individual´s labor

Explanation:

The marginal productivity theory of income or wages states: firms pay a salary that is equal to the extra benefit a (that is why is marginal; an extra unit in this case is an extra unit of labor) worker represents in output of production. In other words, if the firm employees a new worker, its salary would be equal to the extra output produced by him or her (marginal product of labor). Because of this, wages depend on the production function each firm has. The mathematical formula to get the marginal product of labor is: dF/dL, where F is the production function and L represent labor in it.

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Wendy claims that the right mix of hamburgers and other goods is being produced, but that they are not being produced in the lea

BARSIC [14]

Wendy claims that the right mix of hamburgers and other goods is being produced, but that they are not being produced in the least costly way. Economist assess it in the way of allocative efficiency as well as the productive efficiency.

According to Wendy, allocative efficiency is achieved because the right mix of hamburger is produced, but at the same time productive efficiency is not achieved because the production is not utilizing cheapest possible means of producing the goods.

Allocative efficiency occurs when the consumer demand is completely met by the supply. In the other words, businesses are providing the exact supply which the consumers want.

Allocative efficiency occurs from the producers side as well as the consumers side. This happens when the demand is fully met, and production is optimized until marginal costs = marginal revenue . It means that no more profits are made.

Productive efficiency occurs when the businesses focuses on producing a good at the lowest possible cost.

To know more about allocative efficiency here:

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1 year ago

Search engines generate revenue through pay-per-click (each time a user clicks a link to a retailer’s website); pay-per-call (ea

Anettt [7]

Answer:

pay-per-click (each time a user clicks a link to a retailer’s website).

Explanation:

Pay-per-click is the cost stipulated by online survey platforms for each click on a sponsored ad.

Popularized by Google AdWords, this is one of the most used metrics for digital marketing, mainly because of the ease of having measurable digital advertising efforts.

The great advantages of this metric is the possibility of measuring and monitoring the number of users who will click on your link, making it more effective to analyze the impact that your business media has on people.

6 0

3 years ago

All else constant, an increase in a firm's cost of debt: a. will lower the firm's weighted average cost of capital. b. will resu

Elanso [62]

Answer:

Explanation:

will increasethr firm's capital structure weight of dept.

8 0

3 years ago

Sandhill uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (

miskamm [114]

Answer:

$567,056

Explanation:

Cost :

Merchanidize available for sale

= Beginning inventory + Purchases + Freight in

= $386,000 + $1,975,000 + $125,000

= $2,486,000

Retails:

Merchandize available for sale:

= Beginning inventory + Purchases + Markups

= $590,000 + $3,220,000 + $68,000

= $3,878,000

Ending inventory at retail = Retail total -markdowns - Net sales

= $3,878,000 - $104,000 - $2,920,000

= $854,000

Cost to retail ratio = $2,486,000 ÷ ($2,920,000 + $854,000)

= $2,486,000 ÷ $3,744,000

= 66.40%

Ending inventory at retail = $854,000

And

Cost to retail ratio = 66.40%

Therefore,

Ending inventory at cost = $854,000 × 66.40% = $567,056

4 0

3 years ago

Departmental managers at Global Industries are required to maintain written records of highly favorable and unfavorable employee

Lemur [1.5K]

Answer:

1. Critical incidents

Explanation:

Performance appraisal method involves various techniques used in measuring the effectiveness and efficiency of workers in an organization. One of those method of performance appraisal is the use of Critical Incidents. Critical incidents involves the analysis of an employee behaviour towards certain events indicating how well he did, where he could do better and the ones he did well in. It involves the employer/manager or whoever collects the performance ratings keeping a log or data of both the negative and positive behavior of the employee work actions.

8 0

3 years ago