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
Alexandra [31]
3 years ago
8

A profit-maximizing entrepreneur rents an apple orchard for a day. He is a price taker in both the market for labor and the mark

et for apples. Assume that a bushel of apples sells for $10. Laborers are hired by the day (the variable input) to pick apples (the product). The production function (the relationship between the number of laborers hired and the number of bushels of apples picked) looks like this:
Laborers hired per day Total product(bushels of apples per day)
4 52
5 60
6 66
7 70
8 72

Required:
How many laborers would the entrepreneur employ if the government raised the minimum wage to $75 per day?

a. 4
b. 8
c. 5
d. 7
e. 6
Business
1 answer:
yaroslaw [1]3 years ago
7 0

Answer:

c. 5

Explanation:

L       Q     MPL (ΔinQ/ΔinL)    VMPL

4      52  

5      60              8                       80

6      66              6                       60

7      70               4                       40

8 72               2                       20

Note: Labour hired per day = L, Total product = Q, Marginal Product of labor=MPL, VMPL =Price*MPL

A firm will maximize the profit by increasing the number of labor as long as VMPL is higher than or equal to the wage rate. In this case, we observe that VMPL ($80)>wage rate ($75) for L=5 but VMPL ($60)<wage rate ($75) for L=6. So, the optimal number of labor to be hired is 5.

You might be interested in
Which of the following airlines does NOT employ a low-cost provider strategy? Airline 1 offers low prices on short-distance flig
Rainbow [258]

Answer:

Airline 2 offers low prices on long-distance flights and has long service times for its planes between flights.

Explanation:

Low Cost providing strategy is the strategy in which the services are provided at a lower cost and but the quality of service is acceptable, and is in fact good.

Where the price along with quality is decreased the low cost strategy is not followed.

As in the case of Airline 2 the cost is decreased for passengers and at the same time the service is also decreased.

As there is a long gap of time in between the flights.

3 0
3 years ago
You are comparing three investments, all of which pay $100 a month and have an interest rate of 8 percent. One is ordinary annui
Ivan

Answer:

c. The present value of the perpetuity has to be higher than the present value of either the ordinary annuity or the annuity due

Explanation:

Considering the following statements:

  • the ordinary perpetuity, the payments must occur on the first day of each monthly period. Hence this statement is incorrect.
  • The ordinary annuity would be more valuable than the annuity due if both had a life of 10 years. Incorrect.
  • In case of perpetuity the times is not limited, hence would get the higher return.
6 0
3 years ago
When shopping for the best buy in a home theater system the sales representative informs Siddhartha that the more expensive mode
ira [324]

boost frequencies below 80 Hz

What is frequencies?

The frequency of a repeated event is its number of instances per unit of time. In some cases, it is also referred to as temporal frequency or ordinary frequency to underline differences with spatial and angular frequencies, respectively. One (event) per second is equal to one hertz (Hz), which is how frequency is stated. The period is the reciprocal of the frequency since it is the length of time for one cycle in a repeating occurrence. For instance, the period, T—the space between beats—of a heart beating at a frequency of 120 beats per minute (2 hertz), is equal to 0.5 seconds (60 seconds divided by 120 beats).

Learn more about  frequencies with the help of given link:-

brainly.com/question/17264163

#SPJ4

3 0
1 year ago
A $1000 bond with a coupon rate of 6.2% paid semiannually has eight years to maturity and a yield to maturity of 8.3%. If intere
ohaa [14]

Answer:

The price of the bond will be $879

Explanation:

Price of the bond is the present value of all cash flows of the bond. Price of the bond is calculated by following formula:

According to given data

Coupon payment = C = $1,000 x 6.2 = $62 annually = $31 semiannually

Number of periods = n = 2 x 8 years = 16 periods

Current Yield = r = 8.3% / 2  = 4.15% semiannually

Price of the Bond = $31 x [ ( 1 - ( 1 + 4.15% )^-16 ) / 4.15% ] + [ $1,000 / ( 1 + 4.15% )^16 ]

Price of the Bond = $31 x [ ( 1 - ( 1 + 0.0415)^-16 ) / 0.0415 ] + [ $1,000 / ( 1 + 0.0415 )^16 ]  

Price of the Bond = $31 x [ ( 1 - ( 1.0415)^-16 ) / 0.0415 ] + [ $1,000 / ( 1.0415 )^16 ]  

Price of the Bond = $521.74 + $357.26   = $879

7 0
3 years ago
If the interest rate rises in the United States relative to other​ nations, then in the foreign exchange market the demand for d
34kurt

Answer:

B. ​increases; decreases

Explanation:

Foreign exchange market can be defined as type of market in which the currency of one country is converted into that of another country.

For example, the conversion of dollars of the United States of America can be converted into naira (Nigeria) at the foreign exchange market.

Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.

The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis that states that asset (share) prices reflect all information and it is very much impossible to consistently beat the market.

Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.

An interest rate can be defined as an amount of money that is charged as a percentage of the total amount borrowed from an individual or a financial institution.

Generally, if the interest rate rises in the United States relative to other​ nations, then in the foreign exchange market the demand for dollars​ increases and the supply of dollars​ decreases because of the high value of the dollar compared to the other currency.

4 0
2 years ago
Read 2 more answers
Other questions:
  • When a firm changes its capital structure by issuing or retiring debt, for example, this change alters the firms unlevered free
    9·1 answer
  • Josh has been asked to be a part of a new business venture that develops wind energy technologies. since the business involves h
    7·1 answer
  • Orange Corporation acquired new office furniture on August 15, 2018, for $130,000. Orange does not elect immediate expensing und
    10·1 answer
  • Practice of a skill that is spread out over several sessions is known as _____ practice
    6·1 answer
  • The financial ratio measured as net income divided by sales is known as the firm's:
    7·1 answer
  • Equivalent Units of Conversion Costs The Rolling Department of Oak Ridge Steel Company had 10,712 tons in beginning work in proc
    10·1 answer
  • Suppose a banking system has $100,000 in deposits, a required reserve ratio of 25 percent, and total bank reserves for the whole
    10·1 answer
  • The Affordable Care Act authorizes a number of payment reform demonstrations. Group of answer choices True False
    12·1 answer
  • The second step in the repetition strategy is to_____________the information.
    15·2 answers
  • What type of living cost in the u. S. Rose a record 17 percent over the last year, as home prices and construction costs surged
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!