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Nutka1998 [239]
3 years ago
13

Suppose that the wage is $20 per hour in a two-sector (manufacturing and agriculture) specific-factors model. Currently, the pri

ces of manufactured and agricultural outputs are $5 and $1, respectively; the marginal product of labor in the manufactured sector is 6 units per hour; and the marginal product of labor in the agricultural sector is 10 units per hour. What will happen to the distribution of labor between the two sectors?
Business
1 answer:
Masteriza [31]3 years ago
7 0

Options :

A) Nothing will happen. The current allocation of labor between the two sectors is ideal.

B) The manufacturing sector will demand more labor, and the agricultural sector will demand less labor at the current wage.

C) The agricultural sector will demand more labor, and the manufacturing sector will demand less labor at the current wage.

D) Both the agricultural and the manufacturing sector will demand more labor at the current wage.

Answer: B) The manufacturing sector will demand more labor, and the agricultural sector will demand less labor at the current wage.

Explanation: Analysing the marginal product of labor for the TWO sectors ; the manufacturing and agricultural which measures the change in production output as labor is increased. The output produced by increasing labor is 6units for manufacturing and 10 units for agricultural, agricultural seems greater, however, comparing output with the price per unit of product, manufacturing and agricultural sells for $5 and $1 respectively. Meaning manufacturing generates ($5 * 6) = $30 while agricultural generates ($1 * 10)) $10 per increase in number of Labor.

Therefore, at the current wage of $20, revenue made by hiring one more unit of labor into the agricultural sector cannot even cater for it's wage. Therefore, agricultural sector will demand less while manufacturing will demand more.

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lutik1710 [3]

Answer:

value of the product to be protected

Explanation:

The value of the products that are being shipped or distributed should not be included in the protective package.

The severity of the distribution environment  refers to whether the products are hazardous or not, e.g. pesticides should be dealt very carefully because they are poisonous.

The fragility of the product to be protected  refers to the materials used to build the product, e.g. products made of glass are extremely fragile.

The performance characteristics of various cushion materials. refers to what type of cushioning was used to protect the product during shipment.

4 0
3 years ago
Four different challenges
Helga [31]

Answer:

How you become a good Project Manager?

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Managing projects in a complex society entails keeping to time and delivering on time too. By so doing, more projects comes in as no one desire a delay in business and handling of his projects.

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Good and prompt supervision making, conducting trainings to equip staff to be able to deliver the exact requirement to make business smooth.

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As no one jumps into becoming a project manager, it requires a process in which the operation and handling of challenges in a projects is known. Understanding the complexity of projects requires studying the projects knowing the cost and in total wha

3 0
3 years ago
The Harrison Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estim
Artyom0805 [142]

Answer:

the formula used to calculate the cost of equity (required rate of return) based on the bond yield plus risk premium is fairly simple:

cost of equity (Re) = yield of debt (bonds) + firm's risk premium = 11.52% + 3.55% = 15.07%

I'm not sure if the question was copied correctly or not, so I looked for similar questions and it included different numbers.

<em>The Harrison Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimating a company's cost of internal equity. Harrison's bonds yield 10.28%, and the firm's analysts estimate that the firm's risk premium on its stock over its bonds is 4.95%. Based on the bond-yield-plus-risk-premium approach, Harrison's cost of Internal equity is: = 10.28% + 4.95% = 15.23%</em>

<em>Another question: </em>

<em>The Kennedy Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimating a company's cost of internal equity. Kennedy's bonds yield 11.52%, and the firm's analysts estimate that the firm's risk premium on its stock over its bonds is 4.95%. Based on the bond-yield-plus-risk-premium approach, Kennedy's cost of internal equity is: = 11.52% + 4.95% = 16.47%</em>

5 0
3 years ago
Jennifer’s Boutique has 2,100 shares outstanding at a market price per share of $26. Sally’s has 3,000 shares outstanding at a m
goldenfox [79]

Answer:

c. $57,100

Explanation:

The computation of the value of Jennifer’s Boutique to Sally is shown below:

= (Number of shares outstanding ×  market price per share) + (incremental value of the acquisition)

= 2,100 shares ×$26 + $2,500

= $54,600 + $2,500

= $57,100

We simply find out the market value and then added it to the incremental value of the acquisition

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

4 0
3 years ago
Which results from a large company's ability to take advantage of economies of scale?
andreev551 [17]
Large companies have the ability to take advantage from the economies of scale through offering goods which are more affordable than other smaller retailers. This is because as the company grows, their unit cost decreases due to some factors caused by the economies of scale. 
4 0
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