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allsm [11]
4 years ago
10

Suppose a firm is producing the profit-maximizing level of output and the MP of capital and labor are 10 and 20, respectively. I

f the wage is $10 and the rental rate for capital is $25, which of the following is true? To minimize costs the firm should
A. Use more capital.
B. Hire more labor and use less capital.
C. Hire less labor and use more capital.
D. Hire less labor.
Business
1 answer:
Darya [45]4 years ago
4 0

Answer:

B. Hire more labor and use less capital.

Explanation:

The firm producing at the profit-maximizing level of output means that Marginal Revenue = Marginal Cost, it can also be said that Marginal Productivity = Marginal wage/rent (Factor cost).

Therefore to minimize cost there should be a selection of factor mix that will be more efficient (i.e. comparing the cost of input to output) <u>which will be to use more of the cheaper input and less of the costlier input</u>

<u>Since the cost of labor is $10 and that of capital is $25, compared to the marginal productivity of 10 and 20 respectively, it can be seen that labor is the more efficient resource or factor. </u>

<u>Therefore</u><u> the cost minimizing choice of inputs</u><u> will be more of labor and less of capital will minimize costs</u>

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what are the two fundamental qualitative characteristics that make accounting information useful for decision making?
Charra [1.4K]

Answer:

The answer is relevance and faithful representation.

Explanation:

Accounting information that is not relevant useful.

Relevance is when the accounting information in timely and use for taking major business and economic decisions.

Another one is faithful representation. Accounting information must be faithfully represented. It must be objective and free from bias.

If Accouting information is to be faithfully represented, it must have the following:

1. Completeness. There must be full disclosure of information. No material item or information must be omitted.

2. Error-free It must be 99percent error free.

3. It must be free from bias. Objectivity is the key.

8 0
3 years ago
Explain one difference between international and home trade
scZoUnD [109]

Answer:

Mobility of Labor and Capital: "One very important difference between home trade and international trade is that labor and capital are not so mobile between different countries as they are in their own countries."

Explanation:

hope this helps c:

6 0
3 years ago
Read 2 more answers
If an investment adviser representative transacting business in a state terminates employment with a state registered investment
Aleksandr [31]

Answer:

B

Explanation:

If an investment adviser representative transacting business in a state terminates employment with a state registered investment adviser, both the representative and the investment adviser must notify the Administrator promptly.

3 0
4 years ago
Assume the multiplier is 5 and that the crowding-out effect is $30 billion. An increase in government purchases of $20 billion w
saul85 [17]

Answer:

b. right by $70 billion

Explanation:

The computation of the amount that shift to the aggregate demand curve is shown below;

= Multiplier × government purchase - crowding out effect

= 5 × $20 billion - $30 billion

= $100 billion - $30 billion

= $70 billion

So it would right by $70 billion

hence, the correct option is b,

The other options seems incorrect

8 0
3 years ago
Conduct a basic SWOT analysis of an organization or a department you belong to using this SWOT Analysis Worksheet. Once complete
IrinaK [193]

Answer:

Company - Pakola

Strength - Cheap price, Brand name, Many years of service

Weakness -  High staff turnover, Lack of internal controls, Substitutes available.

Opportunity - Introduce new flavors for youth, Look for complimentary goods such as chips and nimco.

Threats - Many competitors, New entrants in the market, Low investment industry, Customers may get bore with one flavor

Explanation:

The SWOT analysis is conducted to analyze the business strengths and weaknesses so that these weaknesses can be overcome before they harm business activities. The strengths are used to make more profits and flourish business activities. The threats are considered so that necessary actions can be taken by company management for minimizing the risk to the business.

3 0
3 years ago
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