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trapecia [35]
4 years ago
15

A manager hires labor and rents capital equipment in a very competitive market. Currently the wage rate is $12 per hour and capi

tal is rented at $8 per hour. If the marginal product of labor is 60 units of output per hour and the marginal product of capital is 45 units of output per hour, should the firm increase, decrease, or leave unchanged the amount of capital used in its production process
Business
1 answer:
Tom [10]4 years ago
7 0

Answer:

The firm should decrease the amount of capital used.

Explanation:

The wage rate is $12 per hour and capital is rented at $8 per hour.

The marginal product of labor is 60 units of output per hour and the marginal product of capital is 45 units of output per hour.

A manager hires labor and rents capital equipment in a very competitive market.

The ratio of marginal product of labor and wage rate

= \frac{60}{12}

= 5

The ratio of marginal product of capital and rent

= \frac{45}{8}

= 5.625

Since the ratio is greater for capital, it means that the manager should decrease the amount of capital used in the production process.

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You and your friends have decided to build a skateboard ramp behind your house. You have already purchased $500 in materials and
Rufina [12.5K]

Answer:

Hand saw is cheaper.

Explanation:

Given:

Material cost = $500

Electric saw cost rent per hour = $20

Building hour from electric saw = 6 hour

Building hour from hand saw = 15 hour

Time off pay from job = $8/hour

Computation of total cost from Electric saw :

Total cost from Electric saw = Material cost + Renting cost of electric saw + Time of from job

Total cost from Electric saw = $500 + (6 × $20) + (6 × $8)

Total cost from Electric saw = $500 + $120 + $48

Total cost from Electric saw = $668

Computation of total cost from hand saw :

Total cost from hand saw = Material cost + Time of from job

Total cost from hand saw = $500 + (15 × $8)

Total cost from hand saw = $500 + $120

Total cost from hand saw = $620

Hand saw is cheaper.

5 0
3 years ago
Mr. Curtis paid the following taxes: Federal income tax $ 72,250 Federal gift tax 361 Federal employer payroll tax for housekeep
tia_tia [17]

Answer:

Mr Curtis can deduct his total property taxes of $ 7,810.00  as well as the Indiana state income tax of $8,120.00 ,since this exceeds the Indiana state sales tax on consumer goods and services of $2,890.00 paid by Mr Curtis during the year.

Finally,the remaining are not deductible

Explanation:

In other words the following taxes are not deductible:

1.Federal income tax $72,250.00

2.Federal gift tax $361

3.The Federal payroll tax for housekeeper $1,301

4.Indiana sales tax on consumer goods and services$2,890

Lastly the property taxes deductible is computed thus:

Principal residence $3,980.00

Vacation home       $2,530.00

Two automobiles    $1,300.00

Total                         $ 7,810.00  

8 0
3 years ago
The goal in a command economy is economic __________.
tankabanditka [31]
The correct answer is Equality
7 0
3 years ago
According to Sullivan, which of the following happens in stressful situations?
barxatty [35]
The correct answer is b
6 0
3 years ago
Read 2 more answers
When positive externalities are present in a market a. private benefits will be greater than social benefits. b. social benefits
Oxana [17]

Answer:

b. social benefits will be greater than private benefits

Explanation:

Positive externalities can be defined as those that produce positive effects for society in relation to the consumption of a good or service.

This is because the social benefit is the sum of the private benefit plus the sum of the external benefit.

An example of positive externality pertinent to the present is the fact that vaccinating people generates greater positive effects on society, because when vaccinating an individual there is less chance of having more people infected with some disease.

So it is correct to say that the social benefits will be greater than the private ones. Letter b.

5 0
3 years ago
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