1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Harman [31]
3 years ago
6

If output is produced according to Q = 5Lk (L is the quantity of labor and k is the quantity of capital), the price of K is $12,

and the price of L is $6, then the cost minimizing combination of K and L capable of producing 4,000 units of output is:__________.
A. L = 25 and k = 32.
B. L = 30 and k = 26.67.
C. L = 10 and k = 80.
D. L = 20 and k = 40.
E. L = 40 and k = 20.
Business
1 answer:
sattari [20]3 years ago
8 0

Answer:

The option E is correct

Explanation:

Solution

Given that:

The output manufactured to Q = 5Lk

Where L= Labor quantity

k=Capital quantity

The price of K= $12

The price of L =$6

Now,

We find the combination of both K and L that will produce 4,000 units of output.

MPL/MPK is defined as the cost minimizing combination = w/r

Thus,

MPL/MPK = D(Q)/dl = 5k

same will be done for L,

MPL/MPK = D(Q)/dk = 5L

We divide 5K and 5L

So,

5k/5L =$6/$12

k/L = 1/2

Thus,

k =L/2

Now, when we substitute the value  L = 2k in Q we have the following below:

Q = 5k * (2k)

Given that Q = 4000

So,

4000=10k2

4000=k2

we divide

k =20

L = 2k = 2820

= 40

Therefore, L =40, k = 20

You might be interested in
Employers prefer to review a___ resume when the history is the most important consideration. A) targeted b) combination c) chron
jeyben [28]
The answer is C: chronological (because it pertains to an order and can involve history. 
3 0
3 years ago
In taking a physical inventory at the end of Year 1, Grant Company forgot to count certain units and understated ending inventor
Rina8888 [55]

Answer:

a. Overstates Year 1 cost of goods sold.

b. Understates Year 1 net income

c. Understates Year 2 cost of goods sold

Explanation:

a. The formula for Calculating the Cost of Goods sold is;

<em>Cost of Goods Sold = Opening inventory + Purchases - Closing inventory.</em>

If the closing inventory is understated, it will reduced the amount being subtracted from Purchases and Opening inventory which would means that Cost of Goods sold will be overstated.

b. The Cost of goods sold is deducted from sales to give Gross profit. If Cost of goods is overstated, it will reduce Gross Profit higher than it should. A lower Gross Profit equates to a lower Net Income.

c. Going by the formula in <em>a;</em>

<em>Cost of Goods Sold = Opening inventory + Purchases - Closing inventory.</em>

In Year 2, the understated Year 1 closing stock will become the understated Year 2 Opening stock. With the opening stock understated, the Cost of goods will be understated as well because Opening stock is meant to increase Cost of goods sold as the formula shows. If it is understated, the amount that it will add will be understated as well.

4 0
3 years ago
The listing and selling brokers agree to split a 7% commission fifty-fifty on a $96,900 lot sale. The listing broker is on a 30%
Sergio039 [100]

Answer:

1,187.03

Explanation:

he listing and selling broker each get 50% of the 7 5 commission.

The commission equal  7/100 x $96,900

Each broker gets   =3,391.5

The selling broker (broker working with the buyer) get 35 % of  3,391.5

=35/100 x 3,391.5

=1,187.025

=1,187.03

5 0
3 years ago
On January 1, Greenview Company adopted the dollar-value LIFO method. The inventory cost on January 1 was $112,000. On December
Mumz [18]

Answer:

125,200

Explanation:

Adjust inventory to base year prices:

= Cost of ending inventory ÷ cost index for the year

= $136400 ÷ 1.1

= $124,000

Current year LIFO layer:

= Adjust inventory to base year prices - Cost of beginning inventory

= $124,000 - $112,000

= $12,000

Inventory to be shown:

= Add the new LIFO layer at end of period prices to prior year LIFO inventory

= (112,000 × 1) + (12,000 × 1.1)

= 112,000 + 13,200

= 125,200

7 0
3 years ago
Cash flows from investing do not include cash flows from: Multiple Choice lending money to another corporation. the sale of equi
Nuetrik [128]

Cash flows from investing do not include cash flows from : Borrowing.

<h3><u>Explanation:</u></h3>

The cash flows either inward or outward of any company refers to the Cash flow from investing activities. The long term usage of cash will be considered under this. The investing activities includes the following such as purchasing a fixed asset, selling a fixed asset. These assets includes any property, plants, equipment,etc.

The cash flows are associated with the generation or spending of amount in the investing activities. This is a section that is included in the cash flow statement of an organisation. Thus, the cash flows for investing activities will not include the cash flows from Borrowing.

7 0
2 years ago
Read 2 more answers
Other questions:
  • Suppose a pizza parlor has the following production​ costs: ​$4.004.00 in labor per​ pizza, ​$2.002.00 in ingredients per​ pizza
    11·2 answers
  • It is the responsibility of the _____ to ensure that the proper agency is notified of flight termination
    15·1 answer
  • During October, Carla Vista Company experiences the following transactions in establishing a petty cash fund.
    9·1 answer
  • If your credit reports show different scores, what should you do?
    12·1 answer
  • Read the following descriptions. Decide who demonstrates good habits. Erica has a file folder with old bills and receipts. She a
    5·2 answers
  • Which sentence or phrase in the passage suggests an action of integrity? On Monday, Mr. Blackwell, the creative head of an adver
    8·2 answers
  • According to the Capital Asset Pricing Model (CAPM), correctly priced securities:
    7·1 answer
  • Schrute Farm Sales buys portable generators for $ 480 and sells them for $ 770. He pays a sales commission of​ 5% of sales reven
    8·1 answer
  • With the real interest rate equal to 3% and the expected inflation equal to 2​%. The value of the nominal interest rate is ___
    9·1 answer
  • A sum of $46875 was lent out at simple interest and at the end of 1 year 8 months, the total amount was $50000. Find the rate of
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!