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
lara [203]
3 years ago
5

The marginal productivity theory of resource demand suggests that those resources whose productivity levels are high will end up

getting a higher share of the economy's income.
a) true
b) false
Business
1 answer:
Travka [436]3 years ago
4 0

Answer: a) true

Explanation:

  • Marginal product is a term which is used to represent the raise in amount of production by adding of one unit of factor of production [Taking other factors constant.]

According to marginal productivity theory of resource,

Under a perfect competition, if there is an increase in the marginal productivity of one resource(while taking price level constant) then that resource will be paid a higher wage rate.

This implies that a higher share of the economy's income.

Hence, the given statement is "True".

You might be interested in
If Rajiv's Fire Engines were a competitive firm instead and $125,000 were the market price for an engine, decreasing its price f
Sonbull [250]

Answer:

b) False

Explanation:

The price reduction will stimulate demand for Rajiv's Fire Engines, in the short run, before competitors catch up or even overtake the firm with price reduction strategies of their own.  This will in turn drive sales and the production quantity to increase marginally in the short-run.  However, in the long-run, because the market is competitive, Rajiv Company will not totally benefit from the price reduction as the price war intensifies among the competitors.

5 0
2 years ago
Paolo and Isadora Shaw are married, file a joint tax return, and have one dependent child, Dante. The Shaws report modified AGI
almond37 [142]

Answer:

2500

Explanation:

6 0
3 years ago
Ship Co. produces storage crates that require 34.0 meters of material at $0.20 per meter and 0.30 direct labor hours at $19.00 p
Shtirlitz [24]

Answer:

Total standard cost = $103.7

Explanation:

<em>Standard cost is the sum of the standard material cost , standard labour cost and standard overhead</em>

Overhead  = OAR × direct labour hour

               = $16 × (0.30×$19.00)= 91.2

Standard cost = (34.0×$0.20) + (0.30×$19.00) +  91.2 = $103.7

Standard cost = $103.7

5 0
2 years ago
The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a racing bike. Data on sales and
Cloud [144]

Answer: (1) From the income statement it is clear that the racing bike cannot meet its fixed cost because it cannot provide a contribution towards meeting the fixed cost (2) it should be discontinued since it cannot provide a contribution towards meeting its fixed cost (3)A Dirk bike has a profit of $26,700, A mountain bike has a profit of $39,600, A racing bike has a loss of ($25,000) Total profit for the product line is $41,300

Explanation:

Income statement

Dirk bike mountain bike. Racing bike. Total

$ $ $ $

Sales. 264,000. 407,000 256,000 927,000

Less :Variablecost 114,000. 200,000 157,000. 471,000

----------- -------------- ------------- ------------

Contribution margin 150,000 207,000 99,000 456,000

Less: Fixed cost

Fixed Advertising. 8,900. 40,300. 20,400 69,600

Depreciation of equipment 20,700 7,300 15,900 43,900

Salary of product line manager 40,900. 38,400 36,500 115,800

Allocated common fixed expenses 52,800 81,400 51,200. 185,400

----------- ------------- ---------- -------------

Total Fixed Expenses 123,300 167,400. 124,000 414,700

Net operating income(loss) 26,700 39,600 (25,000) 41,300

(1) From the income statement it is clear that racing bike cannot meet its fixed cost because it cannot provide contribution towards meeting its fixed cost

(2) it should be discontinued since it cannot provide a contribution towards meeting its fixed cost

(3) A Dirk bike has a profit of $26,700, A mountain bike has a profit of $39,600, A racing bike has a loss of ($25,000) Total profit for the product line is $41,300

7 0
3 years ago
The following account appears in the ledger prior to recognizing the jobs completed in January: Work in ProcessBalance, January
exis [7]

Answer:

Year-end WIP 62,200

jounral entry for completed jobs:

-------------------------------------

Finished Good Inventory   1,149,800 DEBIT

  WIP inventory                              1,149,800 CREDIT

-------------------------------------

Explanation:

<u>WIP </u>

Beginning  $     72,000

Materials    $   390,000

Labor          $   500,000

Overhead   <u>$   250,000</u>

Total WIP    $  1,212,000

<u />

<u>Finished Jobs:</u>

Job 210  $  200,000

Job 224 $  225,000

Job 216  $  288,000

Job 230 <u>$  436,800</u>

Total       $ 1,149,800

the jobs complete will move to finished good and credit WIP inventory

WIP year-end:

1,212,000 - 1,149,800 = 62,200

7 0
3 years ago
Other questions:
  • Trumbull Corporation budgeted sales on account of $120,000 for July, $211,000 for August, and $198,000 for September. Experience
    7·1 answer
  • "when economists say that money promotes ________, they mean that money encourages specialization and the division of labor."
    7·1 answer
  • Do the following functions exhibit increasing, con- stant, or decreasing returns to scale? What happens to the marginal product
    12·1 answer
  • What are tax credits?
    6·1 answer
  • A company orders ten laptops at $600 each. Four are broken upon delivery.
    11·1 answer
  • Your firm designs PowerPoint slides for computer training classes, and you have just received a request to bid on a contract to
    13·1 answer
  • 1. What are the purposes of a checking account? ​
    14·1 answer
  • An economy enters an expansion and GDP increases from $34,000 to $40,000. What is the percent change in real GDP? Round your ans
    15·1 answer
  • Agricultural land includes all of the following EXCEPT which?
    14·1 answer
  • If an organization wanted to improve employee involvement, efficiency, and customer satisfaction, what kind analysis might they
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!