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3 years ago

Under what conditions does a Cobb-Douglas production function,

Business

1 answer:

Juli2301 [7.4K]3 years ago

6 0

Answer:

Exhibits increasing returns to scale.

Explanation:

Given that,

Cobb-Douglas production function:

$q=10(L)^{0.71}(K)^{0.84}$

If both inputs are doubled, then

$q=10(2L)^{0.71}(2K)^{0.84}$

$q=10(2)^{(0.71+0.84)}(L)^{0.71}(K)^{0.84}$

$q=10(2)^{1.55}(L)^{0.71}(K)^{0.84}$

Therefore, this Cobb-Douglas production function exhibits the increasing returns to scale because the power of 2 is greater than 1. Under the condition of increasing returns to scale, an increase in the output of the firm is greater than the increase in the input of the firm.

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Customer groups represent different segments if: ___________.a. Their needs require different products/services or different pri

Free_Kalibri [48]

Answer:

a. Their needs require different products/services or different prices

Explanation:

A customer segment is a term in business that is used to describe a group of consumers with identical or related needs, behaviors, or other characteristics. For example Mass Market, Niche Market, etc.

However, customer groups represent separate segments based on the following:

1. their needs mandate and justify a distinct offer

2. they are sold through various distribution means.

3. they need different types of connection or arrangement.

4. they are ready to pay for various items of the offer

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3 years ago

Sue Peters is the controller at Vroom, a car dealership. Dale Miller recently has been hired as bookkeeper. Dale wanted to atten

Varvara68 [4.7K]

Answer:

Unethical behavior

Unethical behavior refers to the actions of an individual that exist outside what is marked as morally proper or right for a profession, person and industry. The institute of management accountants has developed standards that must be maintained by the managers in order to face ethical challenges. These standards require managerial accountants to maintain their professional competence, preserve the confidentiality of the information they handle and to act with integrity and credibility.

Part 1)

In this case. Dale Miller is a new employee entrusted with the duties and responsibilities as a bookkeeper. Sue Peters is the supervisor. Dale has used office funds for his personal use thus violating the trust Sue and other managers had on him. An employee who has adopted such kind of behavior would fail to become trusted and valued employee of the company. Since. Sue hired Dale Miller and responsible for all the acts performed by Dale Miller. Therefore, it is ascertained that he should undertake termination of Dale Miller because he fails to comply with the policies pertaining to discipline in the organization.

Part 2)

In this case, when the supervisor Sue is a new employee and finds out a malpractice going on internally by an old employee. Thus under such condition Sue is required to discuss the issue with the immediate superior or supervisor. Unless Sue is able to get additional information pertaining to the issue, he would have warmed Dale Miller that such kind of behavior is not accepted in the future. Therefore, it is ascertained that Sue must have establish closer supervision and better control.

8 0

3 years ago

Evans Inc. had current liabilities at April 30 of $74,100. The firm's current ratio at that date was 1.7.Required:Calculate the

bazaltina [42]

Answer:

* The firm's current assets and working capital at April 30:

+ Current asset $125,970

+ Working capital: $51,870

* The current ratio and working capital at April 30 as if the April 29 payment had not been made:

+ Current ratio: 1.57

+ Working Capital: $51,870

Explanation:

* The firm's current assets and working capital at April 30:

We have Current asset/ Current Liabilities = Current ratio <=> Current asset = Current liabilities x current ratio = 74,100 x 1.7 = $125,970.

Working capital = Current asset - Current Liabilities = 125,970 - 74,100 = $51,870.

* The current ratio and working capital at April 30 as if the April 29 payment had not been made:

- Current asset will be 125,970 + 17,200 = $143,170; Current Liabilities will be 74,100 + 17,200 = $91,300 ( as cash has not be deducted for account payable settlement, as a result, account payable is still maintained balance of 17,200 higher than the scenario where the payable had been settled).

=> Current ratio = 143,170/91,300 = 1.57; Working Capital = 143,170 - 91,300 = $51,870.

8 0

3 years ago

Read 2 more answers

Sonic sells the rights to use the business name and sell its products and services to others in a given territory. This arrangem

Ket [755]

Answer:

Sonic sells the rights to use the business name and sell its products and services to others in a given territory. This arrangement is called a franchise agreement.

Explanation:

The franchise agreement can simply be described as a legal agreement for binding of two or more companies. The agreement carries all the terms and conditions under which the two companies will work together. In such a kind of agreement, the owner of a business gives the rights of using the company name to another person or another company. The other company also gets the rights to sell products under the name of that company. In return, they agree to pay a commission or a part of their revenue as franchise fees.

5 0

3 years ago

An analysis and aging of the accounts receivable of Hugh Company at December 31 revealed the following data: Accounts Receivable

Hitman42 [59]

Answer:

$844,000

Explanation:

Given that,

Accounts Receivable = $900,000

Credit balance of Allowance for Doubtful Accounts per books before adjustment = $50,000

Expected amount of uncollectible = $56,000

Bad debt expense at the end of the period is determined by subtracting the credit balance of allowance for doubtful accounts from the expected amount of uncollectible.

Bad debt expense:

= Expected amount of uncollectible - Credit balance

= $56,000 - $50,000

= $6,000

At the end of the period, the allowance for doubtful accounts has a balance of $56,000 that are to be uncollectible.

The cash realizable value of the accounts receivable at December 31, after adjustment, is determined by simply subtracting the Allowance for doubtful accounts from the accounts receivable. It is calculated as follows:

= Accounts Receivable - Allowance for doubtful accounts

= $900,000 - $56,000

= $844,000

4 0

3 years ago

Under what conditions does a​ Cobb-Douglas production​ function,

Under what conditions does a Cobb-Douglas production function,