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3 years ago

What concept implies that a firm's marginal revenue product curve for labor will slope downward in the short run?

1 answer:

4 0

<span>Law of Diminishing Marginal Returns (LDMR). As in Economic theory, there will be fixed and variable factors of production in the short run. This would imply that beyond a certain level of production, the next unit of variable factor added to the production would result in a lower output as compared to the previous unit of variable input that was added to the production. This is ultimately due to the over usage of the fixed factors of production (such as machinery and infrastructure) and resulting in a less "efficient" amount of output due to the physical operating limits of fixed factors of production. As such in the short run, MR will slope downward if the firm is producing beyond its most efficient point of production to ensure more products can be produced given a limited amount of time.</span>

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simpson and homer corporation acquired an office building on three acres of land for a lump-sum price of $2,400,000. The buildin

Free_Kalibri [48]

Answer:

The amount that the company would record for building would be $1,200,000.

Explanation:

We can allocate the fair values as follows:

Particulars Fair value Allocated amount

(a) (b) = (a)/Total*$2.4m

Building $1,300,000 $1,200,000

Land $780,000 720,000

Equipment $520,000 480,000

Total $2,600,000 $2,400,000

The amount that the company would record for building would be $1,200,000.

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3 years ago

Best Western International, Inc., a national hotel chain, paid couples to record themselves with a cell phone camera while they

maw [93]

Answer:

1- experiential

Explanation:

Based on the scenario being described it can be said that the observational approach Best Western used is called experiential research. This is a kind of research in which the subjects contribute to the content of the research as well as the creative thinking that helps the researchers draw conclusions from the content. Which is what the subjects are technically doing by filming their entire vacation experience for the research.

3 0

3 years ago

Read 2 more answers

When you call your computer manufacturer for technical support, you aren't surprised by the lilting accents of the technicians b

Natasha_Volkova [10]

<span>You will often receive a technician with a different accent at a call center because the practice called diversity. It is commonplace for all or most companies to exercise what is called equal employment opportunities. Through operating call centers in other countries, companies are not only creating a diverse environment, they are enabling people and consumers who may speak different languages to be able to communicate with technicians of different cultural backgrounds.</span>

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3 years ago

Aspen Company estimates its manufacturing overhead to be $515,000 and its direct labor costs to be $515,000 for year 2. Aspen wo

Step2247 [10]

Answer:

COGS 3807 debit

FG 7896 debit

WIP 2397 debit

Factory Overhead 14,100 credit

--to record the underapplication of overhead--

Explanation:

overhead rate:

$\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate$

$515,000 overhead / 515,000 labor cost = $1

each labor cost generates a dollar of overhead.

221,400 x 1 = 221,400 overhead in COGS

459,200 x 1 = 459,200 overhead in Finished Goods

139,400 x 1 = 139,400 overhead in WIP inventory

Total applied 820,000

Actual 805,900

Underapplied 14,100

Now we weight each concept and determiante the portion underapplocated in each concept

$\left[\begin{array}{cccc}Item&Value&Weight&Allocated\\COGS&221400&0.27&3807\\FG&459200&0.56&7896\\WIP&139400&0.17&2397\\&&&\\Total&820000&1&14100\\\end{array}\right]$

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3 years ago

If interest rates increase from 9 percent to 10 percent, a bank with a duration gap of 2 years would experience a decrease in it

Rasek [7]

The duration gap is calculated by subtracting the duration of the liabilities from the duration of the activity of the financial entities. Thus, in this case, the net worth of 1.8 percent of its assets.

<h3>What do you mean by Duration Gap?</h3>

Duration Gap refers to the term used by funds, banks, pensions, or many financial institutions to estimate the risk because of changed interest rates.

Also, if we have a negative duration gap means that the market value of equity will increase when interest rates rise.

Thus, in this case, If interest rates increase from 9 percent to 10 percent, a bank with a duration gap of 2 years would experience a decrease in its net worth of 1.8 percent of its assets.

Learn more about Duration gap here:

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8 0

3 years ago