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
The higher the _____ that future earnings may not be achieved, the higher the return on investment investors demand.
yaroslaw [1]
<span>If there is a higher risk on future earnings, then the return needs to be high to meet these risks. Safer stocks tend to have lower rates of return, but are more likely to meet their earnings goals. Stocks with these higher risks inherent will also tend to bring returns that far outstrip these safe investments.</span>
8 0
3 years ago
Q 5.28: Amanda Accountant works for a company that distributes birdseed. While walking through the plant, she notices birdseed s
denis23 [38]

Answer:

The answer is:

Amanda should record the wasted birdseeds (inventory loss) by adjusting the inventory account.

A company's inventory account may be incorrect and show errors due to waste or theft. When a loss in inventory is detected, the inventory account should be adjusted to record all the losses due to waste or theft.  

6 0
3 years ago
When you feel cold, you engage in behavior to reduce this unpleasant feeling, for example, by putting on your coat. This desire
insens350 [35]

This desire to reduce internal tension is a crucial aspect of the drive-reduction theory.

<h3 /><h3>What is drive-reduction theory?</h3>

It corresponds to a psychological theory developed by Clark Hull, who believed that individuals are motivated to meet their basic needs, which are psychological and physiological needs.

Therefore, a behavior to reduce the unpleasant sensation of cold would be a physiological motivation proposed by the drive-reduction theory.

Find out more about drive-reduction theory here:

brainly.com/question/12933887

#SPJ1

4 0
2 years ago
Dyckman Dealers has an investment in Thomas Corporation bonds that Dyckman accounts for as a trading security. Thomas Corporatio
gtnhenbr [62]

Answer:

$20,000

Explanation:

The small investment in equities and bonds must be valued at market value and must not be accounted for in-accordance with the speculation of the company. So the market value here is $20,000 and must be valued at this price irrespective of the management valuation.

5 0
3 years ago
A company could improve its acid-test ratio by selling some equipment it no longer needs for cash. a. True b. Flase
kari74 [83]

Answer:

true

Explanation:

acid test ratio can be calculate by ( Current assets – Inventory ) / Current liabilities. Ideally, the acid test ratio should be 1:1 or higher, however this varies widely by industry. In general, the higher the ratio, the greater the company's liquidity. by selling up equipment in exchange of cash, the will assist the company to be able to handle its current liability with the cash injection into the entity.

3 0
3 years ago
Other questions:
  • Is it preferable for central banks to primarily target inflation or unemployment? Why?
    15·1 answer
  • Donielle opened a revolving line of credit with a $4,000 credit limit. How much does she
    6·2 answers
  • In the context of statutorily mandated arbitration, why has arbitration become widespread during the last few decades?
    13·1 answer
  • Focus strategies are: a. sheltered from the risks associated with industry-wide strategies because of their niche focus. b. able
    6·2 answers
  • What profit-oriented pricing method is often used because of the difficulty in establishing a benchmark of sales or investment t
    13·1 answer
  • Pharoah Company had the following two transactions related to its delivery truck. 1. Paid $280 for an oil change. 2. Paid $600 t
    7·1 answer
  • Finland Inc has the following Accounts Receivable Aging on March 31 Aging BucketCurrent1-90 days91-180 days181-365 days366 days
    11·1 answer
  • Fix-It Co. wishes to maintain a growth rate of 9.89 percent a year, a constant debt-equity ratio of .42, and a dividend payout r
    11·1 answer
  • A process is in control and centered at nominal. Output from the process is normally distributed and the process capability inde
    5·1 answer
  • It is now January 1, 2013, and you are considering the purchase of an outstanding bond that was issued on January 1, 2011. It ha
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!