Solution :
Amy can only change the number of workers. As the fixed input cannot be changed in the short run, so in the short run, the workers are the variable inputs and the ovens are the fixed inputs.
a). Marginal Product of labor
No. of workers The Output The Marginal product of labor
0 0 ---
1 60 60
2 100 40
3 130 30
4 150 20
5 160 10
The marginal product of the labor is the change in the quantity i.e pizza as Amy hires an additional worker.
1 worker raise the output to 100, so the marginal product of labor of 1 worker is 100 and so on. The marginal product of the labor = change in the output / change in the number of workers.
b).
No. of workers The Output The Fixed cost The Variable cost Total cost
0 0 20 0 20
1 60 20 30 50
2 100 20 60 80
3 130 20 90 110
4 150 20 120 140
5 160 20 150 170
The fixed cost remains the same but the variable cost increases as one more worker is hired.
The law of the diminishing the marginal product of labor is determined by = total output increases at the decreasing rate as we increase the quantity of the labor.
Answer:
433 units
Explanation:
Information related to production costs are missing, so I looked for it. I found the following:
current sales price = $17
current fixed costs = $7,242
new labor costs per unit = $2.60, which results in a $0.50 increase
new direct materials cost per unit = $5.82, which results in a $1 decrease
total variable costs per unit = $8.42
Baldwin plans to pass 50% of the changes in costs to its customers:
- Increase $0.25 due to higher labor costs
- decrease $0.50 due to lower materials costs
- net change = -$0.25
new sales price = $17 - $0.25 = $16.75
contribution margin per unit = $16.75 - $8.42 = $8.33
break even point in units = total fixed costs / contribution margin per unit = $7,242 / $16.75 = 432.36 = 433 units
The answer is intrinsically motivated.
Kevin prefers to study by himself, for his own sake and purposes. He is not motivated to learn to seek other people’s approval – he studies because he enjoys what he’s learning and it brings him pleasure. He’s not mentally ill – a lot of people do things for their own enjoyment not because it would make people look him in awe.
Answer:
Today's price = = $30
Explanation:
The question requires the most price one is willing to pay today for the following
a) a stock that will sell for $30 in 1 year
b) Payout a dividend of $3
3) with a return rate on equity of 10%
To calculate the price for today or the present value,
we add the dividend expected to the selling price as follows
$3 + $30 = $33
The rate = 10% and the period = 1 Year
Present value = Future Value / (1+r)∧n
= 33/ 1.1
= $30
