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BartSMP [9]
3 years ago
5

A bottling company uses two inputs to produce bottles of the soft drink​ Sludge: bottling machines​ (K) and workers​ (L). The is

oquants have the usual smooth shape. The machines cost​ $1,000 per day to run​ (r), and the workers earn​ $200 per day​ (w). At the current level of​ production, the marginal product of machines ​(MP Subscript Upper K​) is an additional 316 bottles per​ day, and the marginal product of labor ​(MP Subscript Upper L​) is 39 more bottles per day. Is this firm producing at minimum​ cost? If it is minimizing​ cost, explain why. If it is not minimizing​ cost, explain how the firm should change the ratio of inputs it uses to lower its cost.
Business
1 answer:
Dmitriy789 [7]3 years ago
4 0

Answer:

No.

Explanation:

In order to minimizing the cost for a given level of output, the firm should equate the weighted marginal product of capital with the weighted marginal product of labor.

\frac{MP_{K} }{r}= \frac{MP_{L} }{w}

Put the value in the above equation, we get

\frac{316}{1,000}= \frac{39}{200}

0.316 > 0.195

Now, \frac{MP_{K} }{r}>\frac{MP_{L} }{w}, so the firm is not minimizing its cost in producing the bottles of the soft drink​ Sludge.

Hence, in order to minimize cost the firm should substitute labor with more of capital, so that MP 'K' falls and become equal to MP 'L'.

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False, production is the missing P
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3 years ago
Accounts receivable arising from sales to customers amounted to $80,000 and $70,000 at the beginning and end of the year, respec
vichka [17]

Answer:

b. $290,000

Explanation:

The computation of the cash flows from operating activities to be reported on the statement of cash flows is shown below:

= Net income reported on the income statement + decrease in account receivable

where,

Net income reported = $280,000

And, the decrease in account receivable is $10,000 ($70,000 - $80,000)

So, the cash flow from operating activities

= $280,000 + $10,000

= $290,000

The decrease in account receivable implies that more cash is come so it would be added and the same is shown above

5 0
3 years ago
Do It! Review 11-3a Incorrect answer. Your answer is incorrect. Try again. Riverbed Corp has 3,300 shares of 7%, $103 par value
harina [27]

Answer and Explanation:

1. The preferred stock is non-cumulative, and in previous years, the company has not skipped any dividends.

Dividend paid to preferred shareholders = Shares × Par value preferred stock × Shares percentage

= 3300 × $103 × 7%

= $23,793

Dividend paid to common shareholders = Cash dividend - Dividend paid to preferred shareholders

= $123,500 - $23,793

= $99,707

2. The preferred stock is non-cumulative, and in both of the two previous years, the company did not pay a dividend.

Dividend paid to preferred shareholders = Shares × Par value preferred stock × Shares percentage

= 3300 × $103 × 7%

= $23,793

Dividend paid to common shareholders = Cash dividend - Dividend paid to preferred shareholders

= $123,500 - $23,793

= $99,707

3. The preferred stock is cumulative, and in both of the two previous years the company did not pay a dividend.

Dividend paid to preferred shareholders =  Shares × Par value preferred stock × Shares percentage × Number of years

= 3,300 × $103 × 7% × 3

= $71,379

Dividend paid to common shareholders = Cash dividend - Dividend paid to preferred shareholders

= $123,500 - $71,379

= $52,121

5 0
3 years ago
Zhang company reported cost of goods sold of $841,000, beginning inventory of $38,400 and ending inventory of $46,900. the avera
Hunter-Best [27]

Zhang company suggested price of goods bought of $841,000, establishing inventory of $38,400 and ending inventory of $46,900. the common stock amount is $42560.

Average stock is the average amount or price of your stock over two or more accounting periods. It is the mean cost of inventory over a given quantity of time. That price may additionally or may additionally now not equal the median fee derived from the identical data.

<h3>What is the average inventory level?</h3>

The average inventory degree refers to the number of units, now not the monetary fee of these units. Determining average stock degree is simpler than identifying the average inventory cost. There's one less calculation: you do the identical thing, however assign no value to products. You're simply averaging their quantity.

Learn more about average inventory amount here:

<h3>brainly.com/question/4522984</h3><h3 /><h3>#SPJ4</h3>

4 0
1 year ago
Brazil has a population of about 210​ million, with about 150 million over the age of 15. Of​ these, an estimated 25​ percent, o
Slav-nsk [51]

Answer:

B)Since the development of human capital is an important determinant of economic​ growth, Brazil's literacy and reading rates suggests its potential economic growth rate is lower.

Explanation:

From the question, we are informed about Brazil having a population of about 210​ million, with about 150 million over the age of 15. And Of​ these, an estimated 25​ percent, or 37.5 million​ people, are functionally illiterate, and also compare how the typical literate individual reads only about two nonacademic books per​ year, which is less than half the number read by the typical literate U.S. or European resident.

From the view of New growth theory,the option that explains the implications of​ Brazil's literacy and reading rates for its growth prospects is that Since the development of human capital is an important determinant of economic​ growth, Brazil's literacy and reading rates suggests its potential economic growth rate is lower.

New growth theory, which was attributed to Paul Romer, explains about Economic growth in the long run in related to internal factors of with knowledge as well as human capital. In this scenario Brazil should arrive to make sure the literacy rate among people is increased as possible

7 0
3 years ago
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