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3 years ago

Adam smith believed the invisible hand would do what for the economy?

Business

1 answer:

Art [367]3 years ago

8 0

Answer:

restore the equilibrium of the economy

Explanation:

According to Adam Smith, if market forces are allowed to move freely, they will work for the common benefit of everyone, and it will lead to an equilibrium in the market. The invisible hand moves the supply and demand in such a way to restore the natural balance. Sellers and buyers look for their self-interest and in doing that they efficient allocation of the resources

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Assume a Cobb-Douglas production function of the form: q equals 10 Upper L Superscript 0.33 Baseline Upper K Superscript 0.75.

Gnesinka [82]

Answer:

Since 0.33 + 0.75 = 1.08 is greater than one, this production function therefore exhibits increasing returns to scale.

Explanation:

From the question, we have the following restated equation:

$q=10L^{0.33} K^{0.75}$

Where q is the output, and L and K are inputs

To determine the types of returns to scale, we increase each of L and K inputs by constant amount c as follows:

$q = 10(cL)^{0.33}(cK)^{0.75}$

We can now solve as follows;

$q = 10c^{0.33+0.75} L^{0.33}K^{0.75}$

$q=c^{1.08} L^{0.33} K^{0.75}$

Since 0.33 + 0.75 = 1.08 is greater than one, this production function therefore exhibits increasing returns to scale.

4 0

3 years ago

Direct Labor Variances Advanced Micro Devices develops high-performing computing products. Assume one of its processors, Ryzen 7

Butoxors [25]

Answer and Explanation:

The computation is shown below:

a. The labor rate variance is

= (standard rate - actual rate) × actual labor hours

= ($20 - $19.50) × 64,000

= $32,000 favorable

b. The labor efficiency variance is

= (standard hours - actual hours) × standard rate

= (62,500 - 64,000) × $20

= -$30,000 unfavorable

c. the total flexible budget variance is

= standard cost - actual cost

= ($1,250,000 - $1,248,000)

= $2,000 favorable

7 0

3 years ago

Co. was organized to sell a single product that carries a 45-day warranty against defects. Engineering estimates indicate that

AleksandrR [38]

Answer:

$660 (credit balance)

Explanation:

the question is missing the numbers, so I looked for a similar one:

4% of units will be defective
average repair cost of $20
1,100 units sold during the first month
11 defective units were repaired

The journal entry to record warranty liability:

Dr Warranty expense 880

Cr Warranty liability 880

the journal entry to record actual money spent repairing defective units:

Dr Warranty liability 220

Cr Cash 220

the balance of the warranty liability account at the end of the month = $880 - $220 = $660

4 0

3 years ago

Which of the following best describes a highly leveraged firm? A firm that relies heavily on equity A firm that has higher curre

Ivenika [448]

A firm that relies heavily on debt are the firm that describe a highly leverage firm. Highly leveraged firm refer to a firm that depends on borrowed capital. They have higher debt that equity. Their debt is what they considered as asset.

5 0

3 years ago

If an organization's requirements conflict with the software package chosen, and the package cannot be customized, the organizat

gogolik [260]

Answer:

A. change its procedures.

Explanation:

if there is any problem with the procedure and the use of the software, the organization should think about it and change the procedures

5 0

3 years ago