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Gnom [1K]
3 years ago
10

You have been hired by the No Hassle Collection Agency to provide economic advice. The owner of the agency tells you that No Has

sle's only variable input is the number of collection agents. The hourly wage for collection agents is $40.00. The marginal revenue product curve for collection agents reaches its maximum at five workers with a marginal revenue product of $34.00. What advice would you give this firm?
A. Shut down immediately, as the firm is not able to cover all of its variable costs.
B. Produce as much as possible so as to maximize the difference between the wage paid to collection agents and their marginal revenue product.
C. Hire five collection agents so as to minimize the amount of money the firm will lose.
D. Increase the wage rate paid to collection agents so that their marginal revenue product will increase.
Business
1 answer:
NeX [460]3 years ago
5 0

Answer:

A. Shut down immediately, as the firm is not able to cover all of its variable costs.

Explanation:

Unfortunately, the company contribution is negative. Even at maximum revenue it cannot cover the variable cost needed to produce this revenue. Therefore, is not possible to make a gross profit to afford the rest of the cost. Currently, the company has their fixed cost and the loss from operations.

If it shut down, it will stop the loss from operations and only leave the fixed cost.

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On January 1, year 2, Connor Corporation signed a $100,000 noninterest-bearing note due in three years at a discount rate of 10%
zaharov [31]

Answer:

$84,200

Explanation:

The computation of the amount that should be presented the note as on Dec 31 for year 2 is shown below:

= PV factor 9%, 2 periods × non-interest bearing note amount

= 0.842 × $100,000

= $84,200

Here we considered the 9% interest rate as it is the revalued with respect to the fair value and the same is to be considered

7 0
3 years ago
The fabric costs $14.00 per yard.if you buy 5 yards or more, you can get 20% off.how much would five yards cost on sale?
Rasek [7]
If you were to buy 5 yards at $14 a yard, your first cost would be at $70. But with 14 being 20% of 70, you would subtract 14 out of the $70, which would leave your final cost at $56.
7 0
3 years ago
Please help meeee!!!!!
mestny [16]

Answer:

Banks are owned by shareholders, while credit unions are owned by members

Explanation:

Banks are financial institutions established by the founders to make profits. Due to their capital requirements, banks are large corporations owned by the private sector or government. Like other corporations, the owners of a bank are its shareholders.

Large organizations form credit unions to cater to their employees well being. Credit unions are not for profit organizations since they are formed to cater to its members' well beings. It means membership to the credit union is limited to the founding organization's employees unless otherwise stated. The members of the credit unions are its owners.

8 0
3 years ago
Between _________, it is estimated that Spanish America produced 150,000 tons of silver (including gold converted into silver we
liq [111]

Answer:

1550 - 1750

Explanation:

The primary mining centers in colonial Spanish America were Potosi in southern Bolivia, and Zacatecas and Guanajuato in northern Mexico. Measured in current dollars, silver worth tens billions of dollars was extracted and shipped to Europe during colonial times, but currently those places are extremely poor.  

8 0
3 years ago
A sequence of organizations that directs a product from the producer to the ultimate user is called a(n) _____.
Norma-Jean [14]
The answer is that it is called as marketing channel or distribution channel.

A marketing channel refers to the people, organizations, and activities that are essential to switch the possession of products from the factor of production to the factor of intake and it is the way services and a product get to the end-user, the client and is also called as distribution channel.

4 0
3 years ago
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