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NeTakaya
2 years ago
13

Assume that a firm uses labor and capital to produce a product. The firm hires labor at a wage rate of $4 per unit and rents cap

ital at $5 per unit. At its current output level, the marginal physical products of labor and capital are 20 and 30 units, respectively. To minimize its cost of production without changing the level of output, the firm should a.) make no changes b.) hire more labor and rent more captital c.) hire less labor and rent more capital d.) hire more labor and rent less capital Hire less labor and rent less capital
Business
1 answer:
jarptica [38.1K]2 years ago
8 0

Answer: c.) hire less labor and rent more capital

Explanation:

To answer this we would need to find out the Marginal cost per dollar of producing with either form of production being labour or capital.

The Marginal Product of Labour is 20 units resulting from $4 dollars so that means that for every dollar spent on Labour we get,

= 20/4

= 5 units of output.

However, The Marginal Product of renting Capital is 30 units resulting from $5 dollars so that means that for every dollar spent on Capital we get,

= 30/5

= 6 units of output.

This means that renting Capital is more efficient because we get 1 more unit of output per dollar and so to minimize cost of production without changing the level of output, the firm should hire less labor and rent more capital.

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In the old Merck compensation system, if the salary line formula is: control point = $1544 + $4.72*Hay point. How much will a mi
Alekssandra [29.7K]

Answer:

<u>A mid-level manager will get $5251.2 salary.</u>

Explanation:

Control Point = 1544 + 4.72 x Hay Point

=1544 + 4.72 x 600

= $ 4376 which is the mid-point of salary range in the market.

120% compa ratio means the actual salary given out is (120/100) times the market mid-point

Hence,

Actual Salary = ( 120 / 100 ) x 4376

= $ 5251.2

6 0
2 years ago
Carmen is giving a persuasive presentation at her university tomorrow. During the speech design process, Carmen asks herself why
Mademuasel [1]

Answer:

Letter a is correct. <u>Audience analysis.</u>

Explanation:

Audience analysis is the preparation stage for a presentation, and is relevant for audience evaluation and definition so that communication is appropriately addressed to them.

Audience definition is important for the direction of the presentation, so you can create an engaging presentation that will create the intended understanding of the presenter and positively impact the audience. For this it is necessary to know some characteristics of the public, such as age group, level of knowledge of the subject, interest, culture and others, in order to trace the ideal profile and the direction to occur effectively.

5 0
3 years ago
Olivia bought a $1,874 sprinkler system with her credit card. Her credit card has an APR of 10.31%, compounded monthly. She made
Radda [10]

Answer:

Percentage of the total lifetime cost of the system that the original price made up = 59.07%

Explanation:

The monthly payments for the sprinkler system can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value or original price of the sprinkler = $1,874

P = Monthly payment = ?

r = Monthly interest rate = APR / 12 = 10.31% / 12 = 0.1031 / 12 = 0.00859166666666667

n = number of months = number of years of payment * 12 = 4 * 12 = 48

Substitute the values into equation (1) and solve P, we have:

$1,874 = P * ((1 - (1 / (1 + 0.00859166666666667))^48) / 0.00859166666666667)

$1,874 = P * 39.1976732321759

P = $1,874 / 39.1976732321759

P = $47.81

Therefore, we have:

Total payment for the sprinkler = Monthly payments * Number of months = P * n = $47.81 * 48 = $2,294.88

Total cost in water = Cost in water per week * Number of weeks in a year * Number of years that Olivia kept the sprinkler system = $2.11 * 52 * 8 = $877.76

Total lifetime cost of the system = Total payment for the sprinkler + Total cost in water = $2,294.88 + $877.76 = $3,172.64

Percentage of the total lifetime cost of the system that the original price made up = (Original price of the sprinkler / Total lifetime cost of the system) * 100 = ($1,874 / $3,172.64) * 100 = 59.07%

4 0
2 years ago
Assume the current U.S. dollar-yen spot rate is 90 ¥/$. Further, the current nominal 180-day rate of return in Japan is 1% (annu
Citrus2011 [14]

Answer:

Explanation:

Forward excahnge rate/spot exchange rate = (1+rh)/(1+rf)

rh - periodic interest rate in the home currency

rf - periodic interest rate in the foreign currency

Forward/90 = [1+1%*180/360]/[1+2%*180/360]

Forward = 1.005/1.01 * 90 = 89.55

Forward rate is 89.55 yen/$

3 0
2 years ago
What happens to the matter and energy in fossil fuels when the fuels are burned? Help
Tatiana [17]
The fuel is exposed to heat and oxygen and it burns producing byproducts and heat. The heat is ultimately often used in an engine to reduce motion for transportation some other form of mechanical motion or Electricity
8 0
2 years ago
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