Answer:
b) 100 cars per day.
Explanation:
With the information above, we can conclude that each worker washes 20 cars per day, and earns a wage of $60 per day.
So the total labor costs per day is $60 wage per worker X 4 workers = $240
The total sales revenue per day is: 80 cars washed per day X $5 per wash = $400.
So, we can see that with four workers, the firm has a good profit of = $400 - $240 = $160.
If the firm hired a fifth worker, labor costs would increase to $320 ($240 + $60), the amount of cars washed would increase to 100, and the sales revenue would increase to $500 (100 x $5).
So, profits would increase to $180 ($500 - $320) if the firm hired a fifth worker.
However, productivity should still be stable, so a worker who washed less than 20 cars per day should not be hired, this is why the A option is wrong.
Answer:
Through the decision making process
Explanation:
The decision making process is resumed in 5 steps:
- Problem identification: evaluate de situation and define the problem and its details.
- information research: investigate possible causes and different possible actions that may guide to a solution.
- alternatives evaluation: in this point are analyzed the possiblesolutions to the problem to determine the most suitable solution.
- choose decision: select the most suitable solution and apply it as planned.
- evaluation of results: evaluate if the problem was solved and if there is any necessary improvement
Answer:
B) If the firm does not exit the industry in the long run its demand curve will shift to the left.
Explanation:
This is because the statement "If the firm does not exit the industry in the long run its demand curve will shift to the left, " simply means that if the monopolistic competitive firm stays in a particular industry for long, the firm will experience a situation in which less of the good or service is demanded at every price.
However, this cannot be true because a monopolistic competitive firm produces unique products that tend to have its specific customers. These customers, in the long run, will demand more goods and services of the firms which will be affected positively by a lot of reasons including prices of related goods, increase in salary, better economy at large, etc.
Answer:
a. Mika negotiates a long-term contract for capital equipment for her property management business.
Explanation:
Macroeconomics is a branch of economics that studies the economy as a whole. Macroeconomics studies economic aggregates such as inflation, unemployment, GDP and growth rate.
Microeconomics is a branch of economics that studies the decisions individuals and firms make in response to changes in economic factors. These factors include price, resources etc. it studies how firms and individuals allocate and make decisions about resources
a. Mika negotiates a long-term contract for capital equipment for her property management business. Thus it is a Microeconomic issue
Solution :
a). The sales revenue
Closing balance 2800
Add:cash collected from the customer 78,000
Less:opening balance (9800)
Sales revenue 71000
b). Cost of the goods sold
Cash pf payment for the purchase 58,000
Add:decrease in the inventory (6800-5800) 1000
Add:increase in the account payable (14,800-11,800) 3000
Cost of the good sold 62000
c). The insurance expenses = (4800 + 4800 - 7300) = 2300
d). the salaries and the wages expenses = 2800 + 9800 - 4800
= 7800
Journal entry
Accounts Debit Credit
Income summary account
sales revenue account
Cost of the goods sold 62000
insurance expenses 2300
Salaries & wages expenses 7800
Income summary account 72100
