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Talja [164]
3 years ago
10

When a firm uses K units of capital and L units of labor, it can produce Q units of output with the production function Q = K√L.

Each unit of capital costs 20, and each unit of labor costs 25. The level of K is fixed at 5 units. Find the equation of the firm’s short-run total cost curve?
Business
1 answer:
DanielleElmas [232]3 years ago
7 0

Answer:

STC = 20K + 25L = 20*5 + 25*[\frac{Q^2}{25}] = 100 + Q^2

Explanation:

We are given:

K units of capital and L units of labor.

•Each unit of capital cost = 20

• Each unit of labor cost =25

• Level K is fixed at 5 units

We are told production function Q = K√L

Using the production functions and the values given, we can get that Q=5√L.

To find Q, the amount of labor will be given as:

L = \frac{Q^2}{25}

Therefore, the Short run total cost function (STC) will be:

20K + 25L = 20*5 + 25[\frac{Q^2}{25}] = 100 + Q^2

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The Smelting Department of Kiner Company has the following production data for November. Production: Beginning work in process 3
Anvisha [2.4K]

Answer:

(A) 18,600 units

(B) 13,821 units

Explanation:

(A) The computation of the equivalent unit for material cost is shown below:

= (Completed and transferred units × completed percentage) + (ending work in progress units × completed percentage)

= (10,500 units × 100%) + (8,100 units × 100%)

= 10,500 units + 8,100 units

= 18,600 units

(B) The computation of the equivalent unit for conversion cost is shown below:

= (Completed and transferred units × completed percentage) + (ending work in progress units × completed percentage)

= (10,500 units × 100%) + (8,100 units × 41%)

= 10,500 units + 3,321 units

= 13,821 units

6 0
2 years ago
A good example of ___________________ is a real estate business that shares data on new home purchases between the unit that sel
Ghella [55]
<span>A good example of a market data approach is a real estate business that shares data on new home purchases between the unit that sells insurance for the home and the business unit that sold the home. A market data approach allows businesses to find and sell to consumers that fit the description of their products. They can read market data that is collected from one agency and use it to sell them their product as well because they are hand in hand products. </span>
5 0
3 years ago
An international children’s charity collects donations, which are used to buy clothing and toys for children in need. The charit
MatroZZZ [7]

Answer:

Required 1

<u>General Journal</u>

Cash $8,500 (debit)

Donations Revenue $8,500 (credit)

<em>Cash and Checks received as Donation Revenue</em>

<em />

Wages Expenses $3,000 (debit)

Cash $3,000 (credit)

<em>Wages to employee paid</em>

<em />

Note Payable $3,420 (debit)

Cash $3,420 (credit)

<em>Repayment of Short Term Loan</em>

<em />

Supplies $4,920 (debit)

Cash $2,080 (credit)

Note Payable $2,840 (credit)

<em>Purchase of Toys on cash and on credit</em>

<em />

Supplies $4,020 (debit)

Donations Revenue $4,020 (credit)

<em>Donations revenue received in form of Toy Supplies</em>

Required 2

Net Income is $9,520

Explanation:

<u>Calculation of Charity’s preliminary net income.</u>

Donations Revenue ($8,500 + $4,020)  $12,520

Less Expenses :

Wages                                                       ($3,000)

Net Income/ (Loss)                                    $9,520

7 0
3 years ago
A firm practicing unrelated diversification can make better capital allocations to its subsidiary businesses than the external c
Maslowich

Answer: C. the firm can acquire other firms with innovative products instead of allocating capital to research and development

Explanation:

Unrelated Diversification is regarded as a diversification which takes place when a company adds an unrelated product to its business. For example, when an television manufacturer enters into a clothing business.

A firm practicing unrelated diversification can make better capital allocations to its subsidiary businesses than the external capital market can for all the following reasons except when the firm can acquire other firms with innovative products instead of allocating capital to research and development.

7 0
3 years ago
A firm operates in a perfectly competitive industry. Suppose it has a short run total cost function given by TC= 10000 +0.04q2 .
iren2701 [21]

Answer:

700

Explanation:

The condition for maximizing profits is Marginal cost = Price.

1. We need to calculate the marginal cost, which is the first derivative of the total cost function.

  • marginal cost = (TC=10000+0.04q2=) '

  • MC=0.08q

2. Now, we equalize the MC to the price and solve for q.

0.08q=56

q=56/0.08

<h2>q=700</h2>

6 0
3 years ago
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