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
Wilco LLC uses the weighted average method to determine equivalent units of production. Wilco LLC reported that in last quarter
Anika [276]

Answer:

the number of equivalent units for the production is 13,500 units

Explanation:

The computation of the number of equivalent units for the production is shown below:

Units completed and transferred  is  10,000 units

Add Ending work in the process [7,000 × 0.50] 3,500 units

Total equivalent units 13,500 units

Hence, the number of equivalent units for the production is 13,500 units

The same is relevant

4 0
2 years ago
You are at a wedding and are unexpectedly asked to give a toast to the bride and groom. What would you do?
frez [133]

Answer:

I would say go for it

Explanation:

6 0
3 years ago
You are holding a stock that has a beta of 1.39 and is currently in equilibrium. The required return on the stock is 20.47%, and
r-ruslan [8.4K]

Answer: 26.73%

Explanation:

You can calculate the expected return using the Capital Asset Pricing Model (CAPM).

Formula is:

Expected return = Risk free rate + beta * (Market return - risk free rate)

Use the previous figures to solve for the risk free rate:

20.47% = Rf + 1.39 * (16.50% - Rf)

20.47% = Rf + 22.935% - 1.39R

20.47% - 22.935% = Rf - 1.39Rf

-2.465% = -0.39Rf

Rf = -2.465% / -0.39

= 6.32%

New expected return is:

= 6.32% + 1.39 * (21% - 6.32%)

= 26.73%

7 0
3 years ago
An individual is attempting to determine if it is necessary to register as an investment advisor due to the nature of some of th
statuscvo [17]

Answer:

[D]

Explanation:

Based on the information provided within the question it can be said that the Clients being accredited or qualified would not affect registration requirements or exemptions. This is due to Investment Advisors Act of 1940 and Investment Advisor would have to register if they are giving advice about  securities, being compensation, and being the business of giving advice, regardless if the client are accredited or qualified.

4 0
3 years ago
he Assembly Department of​ ByteSize, Inc., manufacturer of​ computers, incurred $ 260 comma 000 in direct material costs and $ 7
Mkey [24]

Answer:

<em>Cost per equivalent unit  for conversion cost = $116.66</em>

<em>                                      </em>

Explanation:

<em>Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required to a complete a set of work  is done in the period under consideration.So there is no separation of the completed units into opening inventory and fully worked. </em>

To determine the cost per equivalent unit, we use the formula below:

<em>Cost per equivalent unit = $70,000/600</em>

<em>                                        = $116.66</em>

<em />

8 0
2 years ago
Read 2 more answers
Other questions:
  • a corporate team building event costs2 plus an additional $1 per attendee. How many attendees can there be at most if the budget
    15·1 answer
  • Which tasks are common to all Energy pathways?
    5·1 answer
  • Consider the following restaurants: Pizza Hut, Popeyes, and Taco Bell. When conducting a review on any business, the first thing
    5·1 answer
  • What is the residual value of a leased vehicle? A. The vehicles current selling price
    10·2 answers
  • Scott is a manager at a large electronics company. His primary role within the organization is to plan for the "people needs" of
    9·1 answer
  • Which of the following is/are required to report on business segments? I. Publicly-traded enterprises II. Not-for-profit enterpr
    14·1 answer
  • What is the present discounted value of $10,000 that is to be received in 2 years if the market rate of interest is 4 percent?
    12·1 answer
  • Anna wants to take seven days off from her job as an accountant to observe a religious holy week. Her employer is reluctant to a
    5·1 answer
  • A student wants to have $30,000 at graduation 4 years from now to buy a new car. His grandfather gave him $10,000 as a high scho
    11·1 answer
  • _____ involves assembling, packing, labeling, checking and actually moving goods to customers by the best possible means in term
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!