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
= 
= 3.75
The ratio of marginal product of capital and rent
= 
= 8.125
If the cost ratio is higher, it means that the boss must minimize the volume of money involved in the manufacturing process.
Answer:
A) Both Riley and Anh are correct.
Explanation:
to see who is right we can calculate:
PV = FV / (1 + r)ⁿ
FV = PV x (1 + r)ⁿ
Riley's statement:
PV = $700 / (1 + 6%) = $660.38
PV = $700 / (1 + 3%)² = $659.82
Riley is right
Anh's statement:
FV = $700 x (1 + 6%) = $742
FV = $700 x (1 + 3%)² = $742.63
Anh is right
They are both right due to compound interest, since compound interest means that the interest earned will also earn more interest.
Answer:
marginal cost = $2
Explanation:
given data:
cost on wool when 10 sweater made in one month = $15
cost on wool when 11 sweater made in one month = $17
fixed cost = $100
In case of no other cost present, marginal cost is given by
Marginal cost = cost of eleven sweaters - cost of ten sweaters
= $17 -$15
= $2
Answer:
one that implements homogeneous practices across countries.
Explanation:
The process of trading across the national boundaries are said to be an international business. The business process like trading of the good and services and the process of technological and capital investment globally fall under the practice of international business. The transactions of the goods and services are practiced across the borders. Globalization is another term of international business.
Answer:
Explanation:
The journal entry is shown below:
On December 31,2016
Salary Expense A/c Dr $3,960 ($1,320 × 3 days )
To Salary Payable A/c $3,960
(Being adjusted salary is recorded)
On January 2
Salary Expense A/c Dr $2,640 ($1,320 × 2 days )
Salary Payable A/c $3,960 ($1,320 × 3 days)
To Cash A/c $6,600
(Being cash is paid)
