1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vladimir79 [104]
2 years ago
15

When might adding an additional employee be bad for a small business?

Business
1 answer:
Anarel [89]2 years ago
3 0

Answer:

If the demand for the product or services goes down

Explanation:

A reduction in demand for a good or service results in a decline in its price. As per the law of supply and demand, a decline in demand while holding other factors constant pushing the equilibrium price down. Reduced prices mean that the revenues obtained from the sales of the product or service will decline.

Hiring an extra worker when the demand is low will lead to losses. Low demand causes low prices, which implies that the cost of the new employee will be greater than the benefits obtained from the worker.  A reduction in prices will mean that the marginal product of labor will be lower than the cost of labor.

You might be interested in
The role of the entrepreneur in society is to bring the factors of production together and take the risks of producing output. r
tatuchka [14]

Answer:

bring the factors of production together and take the risks of producing output.

Explanation:

Factors of production can be defined as the fundamental building blocks used by individuals or business firms for the manufacturing of finished goods and services in order to meet the unending needs and requirements of their customers.

The four factors of production are;

I. Land: this refers to the natural resources and raw materials extracted from the ground or grown in the soil e.g oil, gold, rubber, cocoa, etc.

II. Labor (working): this is the human capital or workers who are saddled with the responsibility of overseeing and managing all the aspects of production.

III. Capital resources: it includes the physical assets used for production of goods and services such as equipment, money, plant, etc.

IV. Entrepreneurship: it is the intellectual capacity required to drive a business and the skills to develop an idea into a money making venture (business).

In a society, the role of an entrepreneur is mainly focused on bringing the four (4) factors of production together and take the risks of producing output, so as to generate revenue through sales and make economic profits in the long-run.

In conclusion, when the aforementioned factors of production are combined effectively and efficiently, they can be used for the manufacturing or production of goods and services to meet the unending requirements or needs of the consumers.

3 0
2 years ago
Jack and Jill are the only two residents in a neighbourhood, and they would like to hire a security guard. The value of a securi
allsm [11]

Answer:

Jack and Jill

a. With a proportional tax of 1 percent on income, it would be enough to pay for the security guard $120.

Jack would pay $ __40___.

Jill would pay $ __80___.

This tax _will____ be enough to pay for the security guard.

b. Based on net benefit from the guard:

Jack would pay $ __43___.

Jill would pay $ _ 77____.

Would both Jack and Jill vote for this scheme? __No___ Jack will feel cheated by Jill in the sum of $3.  Jack will likely prefer the 1% based on income.

Explanation:

a) Data and Calculations:

Value of a security guard for Jack = $50 per month

Value of a security guard for Jill = $90 per month

Total value of a security guard for both Jack and Jill = $140 ($50 + $90)

Cost of hiring a guard = $120 per month

Jack's monthly earnings = $4,000

Jill's monthly earnings = $8,000

Total monthly earnings for both Jack and Jill = $12,000

a. Proportional tax of 1 percent on income = $120 ($12,000 * 1%)

Jack will pay $4,000 * 1% = $40

Jill will pay $8,000 * 1% =    $80

Total = $120

b. Net benefit scheme:

Jack will pay $50/$140 * $120 = $43

Jill will pay $90/$140 * $120 =    $77

Total = $120

6 0
3 years ago
On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. How would Fl
Llana [10]

Answer:                                                                      

C.) Accounts receivable 7,840 Cash discounts 160 Sales 8,000

Explanation:

Assuming for now that credit customer will avail the cash discount, the following journal entry shall be made on November 10 by Flores mills in respect of credit sales made by it.

                                                                   Debit                 Credit

Accounts receivable                                  $7,840                          

Cash discount                                             $160

(8000*2%)

Sales                                                                                      $8,000                                                                        

Based on the above discussion, the answer shall C.) Accounts receivable 7,840 Cash discounts 160 Sales 8,000

6 0
3 years ago
Suppose a new recreational neighborhood park would cost​ $20,000, including opportunity​ costs, to construct and maintain. if​ b
oksian1 [2.3K]

The decision to build the park or not would be based solely on the cost – benefit relationship of this project. Since there is no other factor considered in this problem, you only need to see if the benefit of constructing the park would exceed its cost. In this problem, the cost to construct the park is $20,000 while the marginal benefit would be $24,000 ($8,000 x 3 families that can benefit from this project). Therefore, you can say that the benefit has exceeded its cost. As a conclusion, the neighborhood park should be built because it benefits the families living in that area more than its cost.

8 0
2 years ago
Gelb Company currently manufactures 49,500 units per year of a key component for its manufacturing process. Variable costs are $
kirill [66]

Answer:

Incremental cost= $61,875

Explanation:

Giving the following information:

Gelb Company currently manufactures 49,500 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, fixed costs related to making this component are $75,000 per year, and allocated fixed costs are $70,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.90 per unit

We need to determine whether it is more convenient to produce the component or outsource it. We will only consider the relevant costs, therefore the fixed costs will not be taken into account.

Make in house:

Cost= 49,500*5.15= $254,925

Buy:

Cost= 49,500*3.90= $193,050

Incremental cost= 254,925 - 193,050= $61,875

8 0
3 years ago
Other questions:
  • For seven years, Bonnie Patterson has been a manager at Wayne and Watson, a legal consultancy firm. A good part of her workday i
    13·1 answer
  • A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,250 of supplies on hand. The general ledge
    9·1 answer
  • Why is the cost of goods sold account part of a trading business only?
    15·1 answer
  • The plaintiff alleges that the defendant spread rumors and gossip about her and her business. From the start, the plaintiff appe
    15·1 answer
  • How much is one bottle of water? Case of 20 water bottles for $15.00
    8·2 answers
  • Current Attempt in Progress Ferris, Inc. has a unit selling price of $500, variable cost per unit of $300, and fixed costs of $2
    9·1 answer
  • The unique way that employees interact with each other and their customers. Also, the personality of the company
    15·1 answer
  • a manufacturer conducts marketing research and estimates that consumers will accept a price of $50 for a pair of sunglasses. if
    6·1 answer
  • Norris' advertising message tells consumers how his company's cable and Internet services differ from other alternatives in the
    8·1 answer
  • You are considering an investment into company xyz and need to determine the company's value and the appropriate investment amou
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!