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Allushta [10]
3 years ago
10

Initially, when a firm hires a fourth worker, its wage rate goes from $80 a worker to $90. The marginal revenue product of the f

ourth worker is $100. Then the government imposes a minimum wage of $90 a worker. If the firm now hires the fourth worker, its profits will
Business
1 answer:
max2010maxim [7]3 years ago
5 0

Answer:

increase by $10.  

Explanation:

The marginal cost of hiring a fourth worker is already $90. This means that any price floor (minimum wage) imposed by the government will not affect this worker or the company because his/her wage was already equal to the new minimum wage.

The firm's profit = marginal revenue product - marginal cost = $100 - $90 = $10.

You might be interested in
A firm acts as a rational decision maker when its leaders decide to do which of the following?
serg [7]

Answer:

b) Cut hours and workers in order to minimize costs

Explanation:

Rational decision making is the process by which a business manager analyses different factors and outcomes before choosing a particular line of action.

The manager will have to choose between alternative options that are available.

In the given instances only the option to cut hours and workers in a bid to reduce cost shows the manager made a decision to achieve a goal (cost reduction).

The other options do not define a clear business goal and a strategy to achieve it

5 0
3 years ago
On June 1, Pina Colada Corp. borrows $111,000 from First Bank on a 6-month, $111,000, 8% note.
V125BC [204]

Answer:

June 1

Cash $111,000 (debit)

Note Payable $111,000 (credit)

June 30

Interest expense $1,480 (debit)

Note Payable $1,480 (credit)

Nov 30

Note Payable $119,800 (debit)

Cash $119,800 (credit)

Explanation:

June 1

Recognize the Cash Asset received and a liability Note Payable

June 30

Interest for 1 month has accrued and this is calculated as :

Interest Expense = $111,000 × 8% × 1/6

                            = $1,480

Nov 30

Total Interest is capitalized to the Note Payable and the full amount is repaid

Total Interest = $111,000 × 8%

                      = $8,800

Ballon Amount = $111,000 + $8,800

                         = $119,800

3 0
4 years ago
2) Food bill before tax: $80<br>Sales tax: 7.9% Tip: 20%​
dangina [55]

Grand Total + Total Bill Subtotal Sales Tax (7.9%)

Total Tip (20%)

Each Pays + Sales tax of 7.9% towards $80.00 is $6.32

A tip of 20% towards $86.32 is $17.26

does this help?

3 0
3 years ago
Shelli's Ski Super has sales of $670, net fixed assets of $210, total assets of $305, and current assets of $25. What is the tot
Troyanec [42]

Answer:

2.20

Explanation:

The formula to compute the total assets turnover ratio is shown below:

Total asset turnover = (Sales revenue ÷ Total assets)

                                   = ($670 ÷ $305)

                                  = 2.20

We simply divide the sales revenue by the total assets, so that the total asset turnover ratio can be computed

All other information which is given is not relevant. Hence, ignored it

5 0
4 years ago
Jose needs a new mountain bike since his old one was run over by the garbage truck. He has seen the Trek bike company sponsoring
MakcuM [25]

Answer:

The correct answer is letter "A": branding.

Explanation:

Branding is the marketing approach by which a company creates an exclusive image, name, or design or more than one at the same time to provide consumers with a product that is different from its competitors. Typically, in the branding provides the product's core feature with an additional advantage to engage consumers in purchasing.

3 0
3 years ago
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