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dalvyx [7]
3 years ago
10

Firm XYZ produces and sells corn in a perfectly competitive market and hires its workers in a perfectly competitive labor market

. Which of the following best describes the demand curve for XYZ's corn and XYZ's demand curve for labor?
answer choices
(A) Demand for XYZ’s Corn = Horizontal ; XYZ’s Labor Demand = Horizontal

(B) Demand for XYZ’s Corn = Horizontal ; XYZ’s Labor Demand = Downward Sloping

(C) Demand for XYZ’s Corn = Horizontal ; XYZ’s Labor Demand = Vertical

(D) Demand for XYZ’s Corn = Downward Sloping ; XYZ’s Labor Demand = Downward Sloping
Business
1 answer:
Korolek [52]3 years ago
7 0

Answer:

(B) Demand for XYZ’s Corn = Horizontal ; XYZ’s Labor Demand = Downward Sloping

Explanation:

If Firm XYZ produces and sells corn in a perfectly competitive market and hires its workers in a perfectly competitive labor market, the statement that best describes the demand curve for XYZ's corn and XYZ's demand curve for labor is: Demand for XYZ’s Corn = Horizontal ; XYZ’s Labor Demand = Downward Sloping.

In a perfectly competitive market for commodities, <u>the demand curve is horizontal because demand is equal to average revenue and is also equal to marginal revenue.</u>

However in the perfectly competitive labor market, the case is different because the wage rate is set by the industry not just one firm, and demand for factors of production such as labor has an inverse relationship with the wage rate.

Furthermore, the law diminishing returns affects the demand for labor because as the firm adds more and more worers, the marginal productivity of each will decline. H<u>ence MP (marginal productivity) is less than AP (average productivity) which leads to a downward sloping demand curve</u>

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Monica wants to sell her share of an investment to Barney for $80,000 in 5 years. If money is worth 6% compounded semiannually,
Fittoniya [83]
Answer: $59,780.65

Explanation:

To find out what she would accept today, we need to apply the present value formula which is= V.P(1+i)^-n

So, $80,000(1+6%)^-5= $59,780.65
7 0
3 years ago
Which of the following would cause a leftward shift of the supply curve for computers? A. an increase in the price of printed ci
Margaret [11]

Answer:

The answer is A.

Explanation:

All other things being equal, an increase in the cost of production of a product will decrease the units of the product being reduced and this reduction in supply shifts the supply curve to left while a decrease in the cost of production will increase the units of the product being produced and this shifts the supply curve to the right.

Printed circuit boards is one of the materials used to build computers and since the price has increased, the cost of producing computer also increases and this will make the producers to produce less, shifting the supply curve to the left.

6 0
3 years ago
In order to evaluate risk, management may also set qualitative risk classes. Rank these four projects from least risky to most r
Burka [1]

Answer:

Ranking projects from least risky to most risky:

1. Repair to old machinery.

2. Addition to normal product line.

3. Completely new market in United States.

4. Completely new market in South America.

Explanation:

As can be seen from the above scenario, the risk profile increases as the company's activities move away from the known, controllable, and internal arenas to the unknown, uncontrollable, and external arenas.  This implies that increasing uncertainty induces more risk.

6 0
3 years ago
Suppose Saron has 7 Birr to be spent on two goods: banana and bread. The unit price of banana is 1 Birr and the unit price of a
mojhsa [17]

Answer:

Solution:

A.

p_x=3, G_x=\frac {100}{3}=33\frac{1}{3}p

x

=3,G

x

=

3

100

=33

3

1

p_y=5, G_y=\frac{100}{5}=20p

y

=5,G

y

=

5

100

=20

B.

100-0.25\times 100=75100−0.25×100=75

p_x=3, G_x=\frac {75}{3}=25p

x

=3,G

x

=

3

75

=25

p_y=5, G_y=\frac{75}{5}=15p

y

=5,G

y

=

5

75

=15

C.

p_x=6, G_x=\frac {100}{6}=16\frac{2}{3}p

x

=6,G

x

=

6

100

=16

3

2

D.

p_y=5, G_y=\frac{100}{4}=25p

y

=5,G

y

=

4

100

=25

2.

MU_x=68-60=8, p_x=2MU

x

=68−60=8,p

x

=2

MU_y=29-25=4, p_y-?MU

y

=29−25=4,p

y

−?

\frac {MU_x}{p_x}=\frac{MU_y}{p_y}

p

x

MU

x

=

p

y

MU

y

\frac{8}{2}=\frac {4}{p_y}

2

8

=

p

y

4

p_y=1p

y

=1

8 0
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Kaylis [27]
The answer should be Perception-Checking

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7 0
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