Growth has which positive effect for businesses?

Suppose that a firm currently produces 100 units using 10 units of K and 14 units of labor per day. The wage rate is $100 and th

victus00 [196]

Answer: $2,900

Explanation:

The cost of this amount of output is:

= (Amount of K used * Rental rate of capital) + (Amount of labor used * wage rate)

= (10 * 150) + (14 * 100)

= 1,500 + 1,400

= $2,900

3 0

3 years ago

In Los Angeles County, the median price rose 0.5% to $618,000 in June and sales fell 12.1%.

svet-max [94.6K]

Answer:

Part 1 : -7.6

Part 2: 15.2%

Part 3: Orange County

Explanation:

Part 1. Price Elasticity:

The formula for Price Elasticity is:

Price Elasticity = Percentage Change in Quantity Demanded divided by the percentage change in price.

So,

We need percentage change in price and percentage change in quantity demanded in order to solve for price elasticity of demand in San Bernardino County.

So,

As we know that,

In San Bernardino County, the median price rose 1.5% to $340,000 and sales fell 11.4%.

Hence,

The Percentage Change in Price = 1.5

The Percentage Change in Quantity Demanded = -11.4

Just Plugging in these values in the Price Elasticity formula, we get:

Price Elasticity of Demand = -11.4 / 1.5

Price Elasticity of Demand = -7.6

Part 2: Condition Given: If Price increased by 2%

So,

In this we are asked to find the percentage change in quantity demanded.

Therefore, we will use the same formula of Plasticity of demand.

Price Elasticity of Demand = Percentage Change in Quantity Demanded divided by the percentage change in price.

Making Percentage Change in Quantity Demanded as subject:

Percentage Change in Quantity Demanded = Price Elasticity multiplied by the percentage change in price.

Here,

Percentage Change in price = 2%

Price Elasticity of Demand = -7.6

Just plugging in these values in to the formula:

Percentage Change in Quantity Demanded = -7.6 x 2

Percentage Change in Quantity Demanded = -15.2

Therefore, Holding the price elasticity of demand constant, sales in San Bernardino County would fall by _15.2_% if prices increased by 2%.

Part 3:

To solve this part, first we need to understand the law of demands:

Law of demands says that the relationship of change in price and change in quantity demanded is inversely proportional keeping all other factors constant. So, if price goes high, quantity demanded will go down and vice versa.

And here,

In _Orange__ County, the law of demand appears to be violated.

5 0

3 years ago

A frozen food manufacturer can produce either pizzas or pepperoni rolls. As a result of a decrease in the price of pepperoni rol

xxMikexx [17]

Answer:

An increase in the quantity supplied of pepperoni rolls and decrease in supply of pizza

7 0

4 years ago

If the spending multiplier equals 5 and equilibrium income is $2 billion below potential GDP, then _____ to reach the potential

rosijanka [135]

Answer:

total spending needs to increase by $0.4 billion

Explanation:

Calculation to determine how much total spending needs to increase or decrease

Using this formula

Increase or Decrease in total spending=Equilibrium income/Spending multiplier

Let plug in the formula

Increase or Decrease in total spending=$2 billion/5

Increase or Decrease in total spending=$0.4 billion

Therefore If the spending multiplier equals 5 and equilibrium income is $2 billion below potential GDP, then TOTAL SPENDING NEEDS TO INCREASE BY $0.4 BILLION to reach the potential real GDP level.

3 0

3 years ago

When u.s. soldiers returned home from world war ii, they influenced the marketing of products by ________?

LenKa [72]

After World War II, alot of the remaining soldiers got married went through life and starting buying more things, when companies started realizing this they started marketing to them a lot more frequent.

3 0

3 years ago