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3 years ago

Explain why the marginal rate of technical substitution is likely to diminish as more and more labor is substituted for capital.

1 answer:

8 0

Answer: This is because the marginal rate of technical substitution is the ratio of the marginal product of labour to that of capital and for the output to be constant opportunity cost comes in, one input has to be reduced to increase the other input.

Explanation:

The marginal rate of technical substitution (MRTS) shows the amount by which the quantity of an input can be lowered when an extra unit of another input is utilized on order for the output to remain constant.

The marginal rate of technical substitution is likely to reduce as more capital is substituted for labor because the marginal rate of technical substitution is the ratio of the marginal product of labour to that of capital and for the output to be constant opportunity cost comes in, one input has to be reduced to increase the other input.

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the creation of a home market is not only necessary to procure for our agriculture a just reward of its labors, but it is indisp

Ahat [919]

The United States should increase the domestic manufacturing to promote prosperity.

<h3>What is manufacturing?</h3>

Manufacturing is the creation or manufacturing of items with the aid of resources such as machinery, labor, tools, and chemical or biological processing or formulation. It is the very foundation of the economy's secondary sector. The phrase can be used to characterize a range of human undertakings, from handicraft to high-tech, but it is most usually used in relation to industrial design, which entails the extensive transition of raw materials from the primary industry into finished goods. Such products may be delivered via the tertiary industry to end users and consumers, sold to other manufacturers for the creation of other, more sophisticated products (such as aircraft, home appliances, furniture, and sports equipment), or both (usually through wholesalers, who in turn sell to retailers, who then sell them to individual customers).

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7 0

8 months ago

Aztec Company sells its product for $160 per unit. Its actual and budgeted sales follow.

nadezda [96]

Answer:

a. We have:

June's total cash collections = $605,760

July's total cash collections = $715,580

b. We have:

June's Loan Balance End of Month = $1,324,163

July's Loan Balance End of Month = $2,226,541

Explanation:

a. Prepare a schedule that shows the computation of cash collections of its credit sales (accounts receivable) in each of the months of June and July.

Note: See part a of the attached excel file for the schedule that shows the computation of cash collections for June and July.

In the part a of the attached excel file, we have:

June's total cash collections = $605,760

July's total cash collections = $715,580

b. Prepare a cash budget for June and July, including any loan activity and interest expense. Compute the loan balance at the end of each month.

Note: See part b of the attached excel file for cash budget for June and July.

In the cash budget in the attached excel file, the following calculations is made:

June additional loan = Minimum required cash balance - June Preliminary cash balance = $110,000 - (-$1,169,663) = $110,000 + $1,169,663 = $1,279,663

July additional loan = Minimum required cash balance - July Preliminary cash balance = $110,000 - (-$792,378) = $110,000 + $792,378 = $902,378

From the cash budget, we have:

June's Loan Balance End of Month = $1,324,163

July's Loan Balance End of Month = $2,226,541

Download xlsx

7 0

2 years ago

Alles Company uses a job costing system that applies factory overhead on the basis of direct labor dollars. No job was in proces

Kazeer [188]

Answer:

(a)

For Job G15:

Direct labor = $20,000

Overhead applied = 16,000

Overhead rate = $\frac{16,000}{20,000}\times 100$

= 0.8 × 100

= 80%

Overhead applied = Direct labor × 80%

= $20,000 × 80%

= $16,000

Overhead is applied on direct labor. Hence, rate is 80%.

Overhead for Job B10 = Direct labor × 80%

= $54,000 × 80%

= $43,200

Therefore,

Total overhead applied = $43,200 + 45,750 + 16,000

= $104,950

(b) Hence,

Overapplied overhead for February:

= Total overhead applied - Actual Overhead

= $104,950 - $68,500

= $36,450

4 0

2 years ago

Suppose the economy is initially at point A. Now suppose an increase in government purchases shifts the aggregate demand curve t

UkoKoshka [18]

Answer:

C. Firms and workers will negotiate higher nominal wages to restore lost purchasing power. This shifts the SRAS curve to the left until the gap is eliminated at D.

7 0

2 years ago

A law firm received $2,000 cash for legal services to be rendered in the future. The full amount was credited to the liability a

Mashcka [7]

Answer:

Revenues to be understated.

Explanation:

The accrual basis says that revenues are recognized when earned and expenses are recognized when incurred.

In this case, if the legal services have been rendered at the end of the accounting period and no adjusting entry is made there is a situation of understated revenue.

When an accountant says that an amount is understated, it means two things: The amount is not the correct amount, and the amount is less than the true amount.

The adjusting entry that should be done is:

Debit to the liability account Unearned Service Revenue, and a credit to the revenue account Service Revenue.

8 0

3 years ago