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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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Which of the following are benefits of international trade?
AURORKA [14]

Answer:

Please find the detailed answer as follows:

Explanation:

International trade provides many benefits:

1. Technology differences, some countries are capital intensive and some are labor intensive. So the countries produce the good according to their intensivity. And export and import take place which is beneficial for the countries.

2.differentiated products.

When trade take place between the countries, then all the opportunity to consume different products. And countries produce their goods according to their labor and capital ratio and produce different variety of goods.

3.Specialisation in production

Countries specialise in the goods in which they have a comparative advantage.

3 0
4 years ago
How many 1/2 are there in 6?​
Neporo4naja [7]

Answer:

\boxed{12}

Explanation:

<em>Hey there!</em>

To find the amount of 1/2’s in 6 we will divide,

6 / 1/2

= 12

So there are 12, 1/2’s in 6.

<em>Hope this helps :)</em>

7 0
3 years ago
Read 2 more answers
If supply-side policies succeed, less output is produced at every price level.
Sever21 [200]

Answer:

False

Explanation:

Supply-side policies aim at increasing productivity. The government outlines measures that promote the supply-side to achieve sustainable growth without causing inflation. The policies aim at enhancing the production capacity of an economy. They increase competition by improving the quantities and qualities of the factor of production.

Supply-side policies do not promote low levels of production.  They argue that an increase in production will result in a high demand for goods and services. An increase in demand will generate more employment opportunities and promote rapid economic growth.

5 0
4 years ago
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True or fales Data entry in the patient record is a combination of structured and unstructured dat
gtnhenbr [62]
False patient records are very structured so that they know what they have done and when they did it to make further progression
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3 0
3 years ago
Read 2 more answers
Last year, Buckner &amp; Jones Company incurred the following costs: Direct materials $42,000 Direct labor 63,000 Manufacturing
Anon25 [30]

Answer:

Option (D) is correct.

Explanation:

Given that,

Direct materials = $42,000

Direct labor = 63,000

Manufacturing overhead = 94,500

Selling expenses = 25,200

Administrative expenses = 23,100

Buckner & Jones produced and sold 2,060 units at a sales price of $131.25 each.

Total period expense:

= Selling expenses + Administrative expenses

= $25,200 + $23,100

= $48,300

Therefore, the total period expense was $48,300.

6 0
4 years ago
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