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Semenov [28]
3 years ago
6

A compay operates plants in both the United States (where capital is relatively cheap and labor is reltively expensive) and Mexi

co (where labaor is relatively cheap and capital is relatively expensive) Under what circumstances will the inpupt choice be relatively similar?
Business
1 answer:
SSSSS [86.1K]3 years ago
3 0

Answer: The input choice will be relatively similar when prices and the marginal product of both capital and labor are equal.

Explanation:

For a cost minimizing output, it is required for a firm to employ resoruces where the MPl/Pl = MPk/Ok

Note that:

MPl = marginal product of labor

Pl = labor price

MPk = marginal product of capital

Pk = capital price

A firm that has cheap capital resources will employ more capital likewise the company that has cheap labor resources will employ more of labor.

The input choice will be relatively similar when prices and the marginal product of both capital and labor are equal.

You might be interested in
Excess return portfolio performance measures
Crank

Answer:

The answer would be E

Explanation:

Excess return, also known as alpha, is a measure of how much a fund has under or outperformed the benchmark against which it is compared.

metric allows investors to compare sets of funds against each other, in order to see which fund has generated greater excess returns.

8 0
4 years ago
In the above problem, the proposed new branch will _______ overall risk exposure and produce a(an) ______ effect. Fill in the ap
vfiekz [6]

Answer:

reduces; geographic diversification

Explanation:

In the above problem, the proposed new branch will economics reduces overall risk exposure and produce a geographic diversification effect.

7 0
3 years ago
Altoid Company sold most of its inventory produced during the period. The manager needs to close the $1,200 balance of Manufactu
Likurg_2 [28]

Explanation:

The journal entry to close the books is

Cost of Goods sold A/c Dr $1,200

       To Manufacturing Overhead A/c $1,200

(Being the under-applied overhead is recorded)

Since the jobs were undercosted, that means the overhead is applied under overhead so we debited the cost of goods sold account and credited the manufacturing overhead account. Both the items are recorded for $1,200

5 0
4 years ago
he three main types of banks (Traditional, Credit Union, Online or Online-Only) have many tradeoffs with respect to technology,
Tema [17]
The saving rate from the highest to the lowest would be :

Traditional Banks  +/-  5 % of rates

Online banks +/-    4 % of rates

Credit Union +/-    2.5 % of rates

hope this helps
4 0
3 years ago
Tasty Subs acquired a delivery truck on October 1, 2018, for $19,500. The company estimates a residual value of $2,100 and a six
dem82 [27]

Answer:

The question is calculating the depreciation expense using straight-line method for 2018 and 2019?

Depreciation expenses for 2018: $725;

Depreciation expenses for 2019: $2,900.

Explanation:

We have yearly depreciation expenses is calculated as:

Yearly Depreciation expense = (Original cost - Salvage value) / Useful life = (19,500 - 2,100) /6 = $2,900.

For 2019, depreciation expense is recorded for the full-year at $2,900.

For 2018, depreciation expense is recorded for only three months ( as delivery truck was bought on Oct 1st 2018), which is calculated as: Yearly Depreciation expense / 12 * 3 = $725.

So, the answer is:

Depreciation expenses for 2018: $725;

Depreciation expenses for 2019: $2,900.

3 0
3 years ago
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