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
valentinak56 [21]
2 years ago
6

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 45 units of output per hour and the marginal product of capital is 65 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:
Alex777 [14]2 years ago
5 0

The firm should decrease the amount of capital used.

Solution:

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

The marginal product of labour is 45 units of output per hour and the marginal product of capital is 65 units of output per hour.

A manager hires labour and rents capital equipment in a very competitive

market.

The ratio of marginal product of labour and wage rate

= \frac{45}{12}

= 3.75

The ratio of marginal product of capital and rent

= \frac{65}{8}

= 8.125

If the cost ratio is higher, it means that the boss must minimize the volume of money involved in the manufacturing process.

You might be interested in
The discount rate is the interest rate charged by:_______.
disa [49]

Answer:

B

Explanation:

I believe it is the interest rate the federal reserve uses for loaning to banks. Its the minimal rate, also.

5 0
3 years ago
Please help me to solve this question.​
kari74 [83]

Answer:

  1. the reproduction in which fertilization takes place is called sexual reproduction.

ii . multiple fission

hope it is helpful to you

6 0
2 years ago
What type of companies engage in marketing?
Wewaii [24]

Answer:

American Heart Association (AHA), Walmart, Procter & Gamble.

Explanation:

4 0
2 years ago
Today, four companies sell more than 80 percent of the compact discs purchased in the united states, although this fact is not o
miss Akunina [59]
Like wow this is hard
the answer for sure is 
"<span>concentration of media power"

</span>
7 0
3 years ago
Which component of u.s. household spending has grown the most over the past ten years? spending on nondurable goods savings spen
bogdanovich [222]
<span>In the past ten years, the largest amount of growth has been seen in the expenditure on services. For example, in the period 2014-5, that expenditure grew by 3.4%. Comparatively, the other components of household expenditure showed relatively modest differential gains during the last 10-year period.</span>
7 0
3 years ago
Other questions:
  • ​if an employee feels she is underpaid for the effort she exerts, she will probably:
    10·1 answer
  • Division ABC has $750,000 invested in assets and earned $200,000 in income. Division XYZ has $800,000 invested in assets and ear
    14·1 answer
  • Gelb Company currently manufactures 53,500 units per year of a key component for its manufacturing process. Variable costs are $
    8·1 answer
  • Jim has a full-time job and occasionally designs Web sites for individuals and businesses. At the end of the year, Jim files his
    5·1 answer
  • In 2009 President Obama and Congress increased government spending. Some economists thought this increase would have little effe
    7·1 answer
  • Almost all financial theory and decision models assume that the financial markets are efficient. The informational efficiency of
    5·1 answer
  • Accessory Industries has 2 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 100
    11·2 answers
  • Allocative efficiency is concerned with:
    14·1 answer
  • How does the rate of P2P amongst millennials compare to that of all survey participants? Why do you think millennial usage is so
    14·1 answer
  • Classify each of the following as a(n) Operating Activity, Investing Activity, or Financing Activity. 1. Issuance of bonds. sele
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!