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]
3 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]3 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
For which market structure do economists have the least precise model of price​ determination?
sasho [114]
<span>The market structure for which economists have the least precise model of price​ determination is oligopoly.

</span><span><span>Oligopoly is a market structure in which a small number of firms has the large majority of market share.</span></span>
4 0
3 years ago
Use the following information:Net sales $ 240,000Cost of goods sold 172,000Beginning inventory 53,000Ending inventory 43,000Calc
mr_godi [17]

Answer:

The inventory turnover ratio is 3.58 times

Explanation:

Inventory turnover ratio an efficiency ratio that indicates how many times a company sells and replaces its stock of goods during a particular period

Inventory turnover ratio is calculated by using following formula:

Inventory turnover ratio = Cost of Goods Sold/Average Inventory

In there:

Average Inventory = (Beginning inventory + Ending inventory)/2

In the company:

Average Inventory = ($53,000 + $43,000)/2 = $48,000

Inventory turnover = $172,000/$48,000 = 3.58 times

5 0
3 years ago
QUESTION 2 The Federal Application for Student Aid (FAFSA) form: A is the free application for federal student aid
Nata [24]
The FAFSA is a free application for federal student aid. This allows the government to determine the amount of help a student is eligible for.
5 0
4 years ago
Jason Graham's startup, which is in the electronics industry, was launched on January 1, 2009. However, prior to its formal laun
Bas_tet [7]

Answer:

C) sweat equity

Explanation:

The definitions ok sweat equity are:

1. Increase in the value of a business (beyond the money invested) created by the unpaid mental and / or physical work of the founder / owner.

2. Increase in the value of a property (beyond its purchase price) created by the hard work of the owner / occupant in improving its comforts and / or appearance.

3. An additional percentage of a company's common stock (common stock) allocated to senior executives (beyond their current stock) as additional motivation to continue working hard for the success of the company.

8 0
4 years ago
Read 2 more answers
Explain why peccarelli returned to guatemala and describe the goals his team are trying to accomplish.
Leno4ka [110]

The reason why Peccarelli returned to Guatemala was to look for the bodies of a tragedy that happened in his childhood and help identify them. His team’s goals are to talk to the families of the deceased and to give the families closure.

7 0
3 years ago
Other questions:
  • Crash time is defined as
    14·1 answer
  • Suppose your credit card issuer states that it charges a 15.00% nominal annual rate, but you must make monthly payments, which a
    8·1 answer
  • 1, compared to north american ranchers, commercial ranchers in the pampas of argentina, uruguay, and southern brazil are more li
    12·1 answer
  • General Motors' executives work for a short time in some dealerships, and some dealership owners work in GM's dealer policy depa
    10·1 answer
  • Which describes a type of exchange that does not use money
    15·1 answer
  • Zeke Company sells 25,000 units at $21 per unit. Variable costs are $10 per unit, and fixed costs are $75,000. The contribution
    10·1 answer
  • In the year 1 consumer Price Index was 120 and the average nominal income was $30,000. In year 2, the Consumer Price Index was 1
    11·1 answer
  • Managerial employment risk is the: Group of answer choices risk that managers will behave opportunistically. risk undertaken by
    14·1 answer
  • The marketing of products and services to companies, governments, or not-for-profit organizations for use in the creation of goo
    11·1 answer
  • You have been made treasurer for a day at AIMCO, Inc. AEVICO develops technology for video conferencing. A manager of the satell
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!