1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dusya [7]
3 years ago
10

Assume that both labor and capital exhibit diminishing returns. Suppose you can hire an additional unit of labor for $10, and sh

e can product 50 units. You could also buy an additional machine at the cost of $200, and that machine would allow you to produce 1000 units.
If your main concern is minimizing average cost, what should you do?
a) Buy the machine, because it will allow you to produce more
b) Nothing, because you are already minimizing cost
c) There is not enough information to make a legitimate response
d) Hire more labor, because it is cheaper
Business
1 answer:
anygoal [31]3 years ago
4 0

Answer:

b) Nothing, because you are already minimizing cost

Explanation:

cost of producing one additional unit by hiring more workers = $10 / 50 units = $0.20 per unit

cost of producing one additional unit by buying the machine = $200 / 1,000 units = $0.20 per unit

Since labor exhibits a diminishing return, the next unit of labor will produce less than 50 units. This means that if you want to increase production, you should buy the machine.

Using the same logic, the previous units of labor were able to produce more than 50 units, which means that the average total cost was lower using labor than the machine. So if the company's concern is to minimize costs, then they are already doing so.

You might be interested in
Accenture is helping a retail company increase efficiency in the management of customer transactions, payment processing, and an
just olya [345]

For the retail company, Blockchain will ensure only admins can modify the data being sent to the Machine Learning model.

<h3>What is Blockchain technology?</h3>

Blockchain is a shared, unchangeable, and immutable digital ledger, duplicated and distributed across the entire network of computer systems.

Blockchain technology facilitates transaction recording and asset tracking.

Some other advantages of using the Blockchain technology include:

  • High-level security
  • Transparency
  • Training data using the ML model.

Thus, for the retail company, Blockchain will ensure only admins can modify the data being sent to the Machine Learning model.

Learn more about Blockchain at brainly.com/question/25700270

#SPJ1

<h3>Question Completion:</h3>

How will Blockchain ensure the integrity of the data sent to the Machine Learning model?

8 0
2 years ago
Assume you are the accountant for Austin Industries. Ellis Austin, the owner of the company, is in a hurry to receive the financ
lorasvet [3.4K]

Answer:

Once you make the proper adjustments, the income statement should no longer show a $95,560 profit, instead it should show $55,080

Explanation:

1. Rent of $42,000 was paid on July 1, 2019, for 12 months.

December 31, 2019, adjusting entry on prepaid rent

Dr Rent expense 21,000

    Cr Prepaid rent 21,000

So rent expense must increase by $21,000

2. Purchases of supplies during the year totaled $18,000. An inventory of supplies taken at year-end showed supplies on hand of $2,720.

December 31, 2019, adjusting entry on supplies inventory

Dr Supplies expense 15,280

    Cr Supplies 15,280

So supplies expense must increase by $15,280

3. The building was purchased three years ago and has an estimated life of 30 years (total accumulated depreciation for 3 years = $21,000)

December 31, 2019, adjusting entry on building depreciation

Dr Depreciation expense 4,200

    Cr Accumulated depreciation - building 4,200

So depreciation expense must increase by $4,200

Adjusted income statement should be:

budgeted profit $95,560

- rent expense ($21,000)

- supplies expense ($15,280)

- depreciation expense ($4,200)

net income after adjustments = $55,080

8 0
3 years ago
On July 1, 2020, Whispering Co. pays $13,620 to Metlock Insurance Co. for a 3-year insurance policy. Both companies have fiscal
S_A_V [24]

Answer:

jul-01 Prepaid expenses   13.620  

jul-01      Cash                              13.620

     

dec-31 Insurance policy expense 2.270  

dec-31     Prepaid expenses    2.270

Explanation:

Paid 1-jul 13620    

     

Three Years 13.620 36 months    

Monthly 378 month    

Current Year 2.270 6 months    

           

jul-01 Prepaid expenses   13.620  

jul-01      Cash                              13.620

     

dec-31 Insurance policy expense 2.270  

dec-31     Prepaid expenses    2.270

4 0
3 years ago
The total factory overhead for Magnum Corporation is budgeted for the year at $500,000. This is divided into three activity pool
tatuchka [14]

Answer:

The ABC overhead for a Deluxe kayak will be $170.93

Explanation:

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

We are going to divide the overhead cost over the cost driver of each activity.

\left[\begin{array}{cccc}-&Overhead&Total&Rate\\fabric&246,000&10,000&24.6\\assembly&144,000&32,000&4.5\\setup&110,000&15&7,333.33\\\end{array}\right]

Now we apply the rate to Deluxe Kayak:

\left[\begin{array}{cccc}-&Rate&Deluxe&Overhead\\fabric&24.6&10,000&246,000\\assembly&4.5&24,000&108,000\\setup&7,333.33&10&73,333.33\\Total&-&-&427,333.33\\\end{array}\right]

Finally we divide the overhead for Deluxe between the units produced

427,333.33/ 2,500 = 170.933 = 170.93

3 0
3 years ago
Match each economic scenario with the correct economic term.
kkurt [141]

Answer:

The answer is:

1 - Underutilization

2 - Efficiency

3 - Unattainability

Explanation:

Efficiency in economics means a situation in which all resources are optimally distributed to serve each entity in the best way while minimizing waste and inefficiency.

Underutilization in economics is also a a situation in which lesser resources are being utilized than the economy is capable of utilizing.

Unattainability is a situation in which what one to accomplish or achieve is not possible.

1 - Underutilization

2 - Efficiency

3 - Unattainability

6 0
3 years ago
Other questions:
  • The minimum possible short run average cost are equal to long run average cost when
    15·1 answer
  • When preparing the statement of cash flows by the indirect method, if current liabilities increase the difference is
    14·2 answers
  • Salary of the company president—$31,300. Salary of the vice president of manufacturing—$16,800. Salary of the chief financial of
    8·1 answer
  • No development typically occurs in late adulthood.<br><br> A) True<br><br> B) False
    14·2 answers
  • The __________ is the system of relationships that develop spontaneously as employees meet and form power centers.
    11·1 answer
  • Determine the cost of merchandise sold for the transaction on October 8 using the perpetual inventory system and the LIFO method
    15·1 answer
  • Which type of interview presents the interviewee with a project which the interviewee must create and carry out a plan for?
    6·1 answer
  • George is responsible for examining the heating and air conditioning system of an upcoming hotel. So, George is a mechanical____
    15·2 answers
  • Kasravi co. Had net income for 2013 of shs 400,000.The average number of shares outstanding for the period was 200,000 shares
    11·1 answer
  • Individuals who score high in ____ tend to take their jobs seriously and act responsibly at work.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!