Answer:
I. If labor and capital are perfect substitutes in production, the isoquant is a straight, downward-sloping line.
II. If a company needs to use inputs in fixed proportion such that the capital to labor ratio is always 2, the firm's isoquants are L-shaped.
Explanation:
Perfectly substittuable goods have straight downward sloping ICs, and have corner solutions
.
Complementary goods (used in fixed proportions) are L shaped always
, In case of min(x,y) function, the answer is the value of x or y which ever is minimum and not their sum.
Therefore, Only statements I and II are true.
Answer:
Possible transportation modes are discussed below in detail.
Explanation:
• Purchase Request: 12 - 25 days
• Process buy request abroad: 10 - 20 days.
• Manufacturing process: 60 days
• Transport from plant to port: 1-14 days
• Paperwork: 5 - 10 days
• Wait for the container: 1 - 7 days*
• Load compartments: 3 - 6 days
• Ship days: 28 days
• Custom clearance: 7 – 14 days
• Warehouse transportation: 1-3 days
Delivery time is around 136 minimum days and 191 maximum days. Likewise, the average delivery time is 163 days. Companies such as international trade specialist, trade logistics companies and Internet exchanges can help the company to reduce the delivery time by facilitating the trade channels. These intermediate channels can help to attain objectives in timely manner.
Answer:
Dividend paid during the year will be $55000
So option (B) will be the correct answer
Explanation:
We have given dividend declared during the year=$60000
Dividend payable at the beginning of the year=$20000
Dividend payable at the end of the year=$25000
We have to find the dividend paid during year
Dividend paid during the year=Dividend payable at the beginning of the year+ Dividend declared during the year-Dividend payable balance at the end of the year
Dividend paid during the year=$20000+$60000-$25000=$55000
So option (b) will be the correct answer
Answer:
Suppose the economy is experiencing an output gap of –3%
a. Monetary policy or fiscal policy can be used to raise actual output toward potential output when:
The government can increase its spending or reduce taxes, which will shift the IS curve to the right and increase GDP.
The Fed can reduce the interest rate, which will shift the MP curve down and increase GDP.
b. The policies identified in part a,
can be used together to raise actual output toward potential output.
Explanation:
Investment-Savings (IS) curve shows all the levels of interest rates and output (GDP) at which an economy's total desired investment (I) equals its total desired saving (S). This equilibrium can be achieved at a level of interest rate that maximizes output. The IS curve slopes downward, and to the right because at a lower interest rate, investment is higher, which produces more total output (GDP) for the economy.
Answer:
The correct answer is option a.
Explanation:
The monthly total revenue is $5,000.
The marginal cost of producing 19th, 20th and 21st unit is $200.
Laura will earn profit if the price is able to cover marginal cost.
Total revenue is the product of price and quantity.
Price of cake when Laura produces 19 units
= 
= 
= $263.15
Price of cake when Laura produces 20 units
=
= 
= $250
Price of cake when Laura produces 21 units
=
=
= $238.09
So we see that the price is able to cover marginal cost till 21st units, so Laura should produce more than 20 units and go on producing till price becomes equal to marginal cost.
