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4 years ago

The profit-maximizing rule for a firm hiring both labor (L) and capital (C) under conditions of imperfect competition is g

Business

1 answer:

amid [387]4 years ago

8 0

Answer:

the least cost rule

Explanation:

Imperfect markets are those where all the conditions for perfect markets don't exist. In perfect markets, the profit maximizing rule for hiring labor is that you will continue to add labor until marginal revenue product = marginal cost of labor. The same applies for capital or land which are the other factors of production.

But on imperfect markets, this is not that clear, the equation in this case would be:

least cost rule ⇒ marginal product of labor / marginal cost of labor = marginal product of capital / marginal cost of capital

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Pollution is a negative externality and it causes harm to the society worth $8 per unit of coal production. In order to ensure s

Paul [167]

Answer:

Impose a simple tax of $8 per unit of production on suppliers of coal.

Explanation:

Given that the question asks us to ensure socially efficient production, then according to social efficiency which means Marginal Social Benefit equals Marginal Social Cost.

Therefore, in this case, the Marginal Social Cost is $8 per unit of coal production, and in order to have equal Marginal Social Benefit of $8 as well, the government should "impose a simple tax of $8 per unit of production on suppliers of coal."

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4 years ago

Consider where you currently work, where you have previously worked, or a well-known company where you would like to work. How w

enot [183]

Answer / Explanation:

First, we need to understand what variance analysis is. Variance analysis is the qualitative and quantitative measure of the difference between actual financial value and the budgeted financial value.

This helps us to properly monitor our rate of spending against our profit or loss margin. it also assist in proper fund management.

Now talking about how the company will utilize variance analysis, the company will utilize variance analysis in the aspect of fixed over head spending. In the sense that it will be used to measure manpower productivity against overhead spending. This will help us to proper affirm if the rate of manpower productivity equal fixed overhead spending. In the case where fixed overhead spending is more than man hour productivity ratio, then the company will be running at a loss. This is basically a way of measuring productivity performance of man power and also assets.

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4 years ago

The Manchester Corporation manufactures wooden pictures frames. In order to better manage costs, the Manchester Corporation had

Serhud [2]

Questions

The Manchester Corporation manufactures wooden pictures frames. In order to better manage costs, the Manchester Corporation had previously developed the following standards for the manufacture of its product:

Each unit should have 3/4 of a pound of direct materials purchased at $12 per pound.

Each unit should be produced in 48 minutes at a direct labor cost of $16 per hour. The company had the following detailed retails:

Actual production was 20,000 units using 14,600 pounds of direct materials at a total cost of $168,000 and required 11,000 direct labor hours at a total cost of $190,000.

What is the company cost variance related to direct labour

Answer:

Direct labour cost total Variance = $66,000 favorable

Explanation:

The direct labor cost total variance is the difference between standard labour cost of the actual production achieved and the actual labour cost.

The standard labour cost of labour per unit of output is not given. So, we work it out first

Standard labour cost per unit= 48/60× $16= 12.8 per unit

20,000 units should have cost (20,000× 12.8) 256,000

but did cost 190,000

Direct labour cost total Variance 66,000 favorable

Direct labour cost total Variance = $66,000 favorable

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3 years ago

?the management of zilo toys inc., a toy manufacturing company, believes that the longer the customers spend deciding what to pu

IgorLugansk [536]

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3 years ago

A spot rate may be defined as the price a foreign currency can be purchased or sold today. the price today at which a foreign cu

harina [27]

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3 years ago