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Bumek [7]
3 years ago
14

A new public works project requires 20,000 hours of labor to complete. a. Suppose the labor market is perfectly competitive and

the market wage is $15.What is the opportunity cost of the labor employed? b. Suppose that there is currently unemployment among workers, and that there are some workers who would willingly work for $10 per hour. What is the opportunity cost of the labor employed? Does this vary depending on the fraction of would be unemployed workers hired for the project? c. If your answers to a and b differ, explain why.
Business
1 answer:
Bumek [7]3 years ago
6 0

Answer:

a. $300,000

b. $200,000

Explanation:

a. The opportunity cost for labor is calculated by multiplying the hours of labor needed to complete the project with the market wage rate.

20,000 hours * $15 per hour = $300,000

b. There are some labors that are unemployed and has agreed to work for $10 per hour. The opportunity cost will now be lower than the previously calculated

20,000 hours * $10 per hour = $200,000

c. The opportunity cost depends on the wage rate of the labor. When the labors are employed at market rate, the opportunity cost is high and when there is unemployment the labors are willing to work for lower wage rate. The opportunity cost is decreased.  

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The correct option is (b) Protective tariffs

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<h3 /><h3>What is protective tarrifs?</h3>
  • An illustration of a protective tariff would be the US raising the customs charge on clothing imported from Britain so that it is significantly more expensive than clothing made domestically.
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Learn more about the Tarrifs with the help of the given link:

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I understand that the question you are looking for is "Which of these actions was an economic cause of increased tensions between the North and South?

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2 years ago
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5 0
3 years ago
An increase in the price of gasoline will reduce the amount of gasoline purchased. This is
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Answer:

<h2>In this case,the answer is option is B. or a positive economic statement.</h2>

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Answer:

1 Line item description                Cost                Retail

2 Beginning inventory                 40000            360000

3 Purchases                                  1000000        10000000

4 Transportation in                       50000

5 Purchase returns                      -20000          -196000    

6 Net purchases(3+4+5)             1030000        9804000

7 Net additional markups                                    800000    

8 Cost to retail ratio                     1070000       10964000

  component(2+6+7)

9 Net markdowns                                                -500000    

10 Sales                                                                  -9800000    

11 Ending inventory,retail(8+9+10)                       664000

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= 1070000/10964000

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= 664000*9.76%

= $64806

Cost of goods sold = Sales*Cost to retail ratio

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= $956480

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