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Alexandra [31]
2 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]2 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.

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Select the correct answers. Which strategy would be most suitable for a company at the maturity stage of its product life cycle?
Sholpan [36]

Answer:

E decrease the product price

Explanation:

Maturity stage of the product is the stage where the product has already saturated in the market and sales begin to peak and slow down. Many companies will want to maintain this stage when it peaks but when the decline starts showing up it is a great challenge for them due to competition that cuts in from other companies.  so companies at maturity stage would want to adopt  the method of decreasing the price of the product in order  to fight off competition.

3 0
3 years ago
A start-up company has developed some innovative products, but it has no marketing or advertising expertise. It hired The Tullen
rewona [7]

The Tullen Group is an example of a marketing intermediary as it is hired to design an advertising campaign that includes creating a web presence.

<h3>What is a marketing intermediary?</h3>

This refers to those independent firms that assist firms in the flow of goods and services from producers to end-users.

A typical example of a marketing intermediary includes:

  • the agents
  • the wholesalers
  • the retailers.

Also, these intermediary also functions as a link between manufacturers and customers in the distribution of products.

Hence, the Tullen Group is an example of a marketing intermediary as it is hired to design an advertising campaign that includes creating a web presence.

Read more about marketing intermediary

brainly.com/question/25689913

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8 0
1 year ago
On February 1, 2021, Strauss-Lombardi issued 8% bonds, dated February 1, with a face amount of $810,000. The bonds sold for $735
Mnenie [13.5K]

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

Interest paid semiannually on July 31, and Jan 31,

so the rate of interest is :- 9% × 6÷12 = 4.5%  and  8% × 6÷12 = 4%

Date    Interest         Paid interest 4%         Amortized         Carrying value

       expenses 4.50%                             discount amount

February,1                                                    $735,474

July,31 $33,096   -   $32,400                    $696            $736,170

Jan.31      $33,128   -   $32,400                    $728            $736,898

Working note =

Paid interest = $810,000 × 4÷100 = 32,400

Interest expenses in July,31 = $735,474 × 4.5 ÷ 100

= 33,096.33 or $33,096

Interest expenses in January,31 = $736,170 × 4.5÷100

= 33,127.65 or $33,128

Carrying Value = Previous Carrying Value + Amortized Discount Amount

July,31

= $735,474 + $696

= $736,170

Jan,31 =  $736,170 + $728 = $736,898

Journal Entry

Feb,1  Cash A/c Dr. $735,474

  Discount on bonds payable A/c Dr. $74,526

  To bonds payable A/c      $810,000

         (To Record the issuance of bond)

July,31 Interest expense A/c Dr. $33,096

     To Discount on bonds payable A/c  $696

     To Cash A/c $32,400

            (To Record the interest expense)

Dec,31  Interest expense A/c Dr. $27,606

      (9% × 5÷12) × $736,170

     To Discount on bonds payable A/c $606

     To Cash A/c $27,000    (8% × 5÷12) × $810,000  

           (To Record the accrued interest)

Jan,31  Interest expense A/c Dr. $5,522

    Interest payable A/c Dr. $27,000

    To Cash A/c $32,400

    To Discount on bonds payable A/c $122

 ($728 - $606) = $122

          (To Record the interest on January)

8 0
3 years ago
Creative Sound Systems sold investments, land, and its own common stock for $32.0 million, $14.8 million, and $39.6 million, res
Studentka2010 [4]

Answer:

Creative Sound Systems should report $18,800,000 as net cash flows from financing activities

Explanation:

Cash flow Financing activities are the funds that the business acquire or paid to finance its main activities, these involve borrowing and repaying short-term loans, long-term loans and other long-term liabilities.

From the question, Cash inflow from Issue of common share and Cash outflow from purchase of treasury stock are the only recognizable Financing activities

Particulars                                                                Amount

Cash inflow from Issue of common share              $39,600,000

Cash outflow from purchase of treasury stock     -$20,800,000

Net cash flows from financing activities              $18,800,000

7 0
3 years ago
D
chubhunter [2.5K]

Answer:

False

Explanation:

The situation above is called the "pitch." This is a <em>process of persuasion </em>whereby people present their ideas to their<u> potential clients or investors.</u> This is done in order to achieve a particular purpose. In the situation above, the ad agency's purpose is<em> to win the potential client's account. </em>In order to become successful in pitching ideas, one has to consider some pointers such as <em>getting to the point fast, using a message map, not using too many slides and the like.</em>

So, this explains the answer.

5 0
3 years ago
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