13. A firm hires its labor in a perfectly competitive factor (or resource) market and sells its product in a perfectly competiti
1 answer:
Answer:
Attached below are the graphs
Explanation:
i) The Equilibrium wage rate in the market is determined by the Intersection of the labor demand and supply curve as seen in the graph attached
ii) The Labor supply curve the firm faces is perfectly elastic in a perfectly competitive resource market
iii) The demand curve of the firm is perfectly elastic because in competitive market a slight change in price will cause a massive change in demand
iv) The firm will continue hiring as long as MRP ≥ MFC
( MRP = marginal revenue product , MFC = marginal factor cost )
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Answer:
219.57 units
Explanation:
Given :
Daily demand, d = 7 per day
Standard deviation, = 2 per day
Service probability = 98%
Total number of days per week = 7
Lead time , L = 3 days
On hand inventory, I = 35
Now calculating the optimal order quantity by using the given formula,
.............(i)
First, we will find out the value of and z.
Therefore,
= 11.48
Now the value of z can be found out from the z-table,
Z value for 98% service level = 2.054
Now putting the value of and z in equation (i), we get,
= (7)(30+3)+(2.054)(11.48) - 35
= 231 + 23.57 - 35
= 219.57 units
So the optimal number of the units required to be order = 219.57 units
Answer:
Desired profit for the year = $2,329,000
Explanation:
Using the given information, we have
Production volume = 602,000 units
Market price = $34
Operating income desired = 17% of total assets
Total Assets = $13,700,000
Operating income = $13,700,000 17% = $2,329,000
Therefore desired profit = $2,329,000
therefore with this information desired profit per unit = $2,329,000/602,000 = $3.869
Target cost per unit = $34 - $3.869 = $30.131
Desired profit for the year = $2,329,000