Answer:
You should increase production.
Explanation:
According to microeconomic theory, the equilibrium point for production is where the value of marginal cost equals the price. While the marginal cost be less than price, is accurate to say that cost productions are not being minimized. This minimization of cost is reach exactly when the marginal cost equals the price.
Answer:
$0.808
Explanation:
Given:
Number of workers hired = 6
Number of units to be produced = 90
Fixed cost of the product = $6 per unit
Variable cost = $10 per unit
Marginal product of the 7th unit of labor = 4
Now,
Total variable cost = Variable cost per unit labor × Total labor hired
or
The total variable cost = $10 × 7 = $70
Thus,
The total cost = Fixed cost + Total variable cost
or
The total cost = $6 + $70 = $76
Now,
the total units produced
= Unit produced by 6 labor + marginal product from seventh labor
or
The total units produced = 90 + 4 = 94
Hence,
the average variable cost of production when the firm hires 7 workers
= 
or
= 
= $0.808
It will reduced the opportunities in digital camera industry
If the cell phone producers produced more phone that already have camera in it, the consumers will be less likely to buy another digital camera,
and this will lower the revenue of Digital Camera's producers and reduced their opportunities
Answer:
a. 7,000 years
b. 2,333 years
c. 875 years
Explanation:
Based on rule of 70, we can have the following formula to do the calculation:
Number of years to double = 70 ÷ Interest rate per year .................... (1)
We can now calculate as follows:
a. A savings account earning 1% interest per year.
Number of years to double = 70 ÷ 1% = 7,000 years
b. A U.S. Treasury bond mutual fund earning 3% interest per year.
Number of years to double = 70 ÷ 3% = 2,333 years
c. A stock market mutual fund earning 8% interest per year.
Number of years to double = 70 ÷ 8% = 875 years
Note:
It can be observed that the higher the interest rate, the lower the number of years it will take the investment to double.
