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
taurus [48]
2 years ago
13

Mr. Cobb, a corn farmer, pays his workers $8 an hour. At his current level of labor use, the marginal product of an additional h

our of labor is three bushels of corn. The market price of corn is $2.75. In order to maximize his profits, Mr. Cobb should:
a. hire more labor because the marginal revenue product is below the wage.
b. not hire more labor because the marginal revenue product exceeds the wage.
c. raise the price of the corn that he sells.
d. not hire more labor because the marginal revenue product is below the wage.
e. hire more labor because the marginal revenue product exceeds the wage.
Business
1 answer:
Radda [10]2 years ago
8 0

Answer:

The correct answer is Option (E).

Explanation:

According to the scenario, the given data are as follows:

Worker Wage = $8

Rate of corn bushel = $2.75

Work done = 3 bushels per labor hour

So, from this we can calculate the marginal revenue of product,

Marginal revenue of product =  Rate of corn bushel × Work done

= $2.75 × 3 = $8.25

As, Marginal Revenue > Wage

More marginal revenue means more profit.

Hence, Mr. Cobb should  hire more labor because the marginal revenue product exceeds the wage.

You might be interested in
Weiss Lenscorp, a maker of camera lenses, provides a 3-year warranty against defects on all of its products. In fulfilling its w
GuDViN [60]

Answer:

warranty liablity account ending balance:  3,510,000

Explanation:

In total, we expect a warranty expense for 6% for each sale distributed among three years.

For the 32,000,000 million sales for 2019 we expect:

32,000,000 x 6% = 1,920,000 warranty expense.

                                   warranty liaiblity

                                   debit       credit

beginning                                3,370,000

expenditures          1,780,000

warranty expense  <u>                 1,920,000</u>

balance                                    3,510,000

6 0
3 years ago
Assume that a college student spends her income on Coke and Snickers. During finals week, the price of a Snickers candy bar is $
Ratling [72]

Answer:

The answer is: 10 Snickers bars and 20 cans of Coke.

Explanation:

To find out what combination she can buy with her total income ($32.50) we can just multiply the price of each product by its quantity;

  • If she buys 24 snickers bars and 12 cans of coke she will spend:

        (24 x $0.75) + (12 x $1.25) = $33     SHE CAN´T AFFORD TO BUY

  • If she buys 24 snickers bars and 12 cans of coke she will spend:

        (22 x $0.75) + (14 x $1.25) = $34     SHE CAN´T AFFORD TO BUY

  • If she buys 24 snickers bars and 12 cans of coke she will spend:

        (15 x $0.75) + (18 x $1.25) = $33.75     SHE CAN´T AFFORD TO BUY

  • If she buys 24 snickers bars and 12 cans of coke she will spend:

        (10 x $0.75) + (20 x $1.25) = $32.50    <u> </u><u>SHE CAN AFFORD TO BUY</u>

8 0
3 years ago
A __________ inventory system is a small, wheeled container used in a just-in-time inventory system to move component parts from
STatiana [176]

Answer:

Kanban inventory system

Explanation:

Kanban inventory system -

It refers to as the system , which make sure than the company's stores only the required components in the production or distribution process , is referred to as kanban inventory system .

The Kanban system enables to give indication for reordering or rearrange the stock  .

Hence , from the given information of the question ,

The correct answer is Kanban inventory system .

7 0
3 years ago
An author just signed a lucrative contract with a publisher that offers to pay her the amount of $500 at the end of year 9 when
solong [7]

Answer:

Ans. The annuity that will be equivalent to the publisher´s advance would be $26.40 per year, for 9 years at 7% interest rate.

Explanation:

Hi, first, let´s bring that $500 to be paid in 9 years to present value, we need to use the following formula.

PresentValue=\frac{FutureValue}{(1+r)^{n} }

Where: r is our discount rate (7%) and n the periods from now when she will receive that $500 amount. This should look like this.

PresentValue=\frac{500}{(1+0.07)^{9} } =271.97

Ok, so the equivalent amount of money today of those $500 in nine years is $271.97, but the author wants $100 today so the remaining amount has to be used to find the equal annual payments to be made in order to be equivalent to re remaining balance ($171.97). We now need to use the following equation.

Present Value=\frac{A((1+r)^{n}-1 )}{r(1+r)^{n} }

And we solve for "A" like this

171.97=\frac{A((1+0.07)^{9}-1 )}{0.07(1+0.07)^{9} }

171.97=\frac{A(0.838459212 )}{0.128692145}

171.97=A(6.515232249)

A=\frac{171.97}{6.515232249} = 26.40

Therefore, the equivalent amount of money of $500 in 9 years is $100 today and $26.40 every year, at the end of the year, for nine years.

Best of luck.

4 0
3 years ago
The accounting equation (Assets 5 Liabilities 1 Equity) is a fundamental business concept. Explain what this equation reveals ab
Orlov [11]

Answer:

Explanation: The Accounting Equation (Assets= liabilities +Equity) shows the relationship between a company's assets, Liabilities and owners equity which at the end of the day balance out.

Assets reflect the total value of the property that the business has, and which is in its turnover.

Liabilities reflect the size of the financing of an organization’s assets by third parties, banks, and private financial institutions.

Owner's Equity is characterized the value of investments made in this organization by its owner/s (shareholders). It can be said to be Capital plus retained earnings.

The accounting equation can be said to be Assets = liabilities+capital+revenue-expenses -dividend.

this is simply put that assets are totality of a company's liabilities, capital, revenue, expenses and dividend.

5 0
3 years ago
Other questions:
  • An information technology director collected the names and locations of key vendors, current hardware configuration, names of te
    14·1 answer
  • The federal government is trying to decide if money should be spent on
    6·1 answer
  • The trading bloc consisting of 28 trading partners in europe is the ____.
    14·1 answer
  • First, spend a couple of sentences summarizing the Concepts in Action video you watched this week. Then, answer the following. I
    8·1 answer
  • You deposit $4000 into a savings account. the account earns 2.75% simple interest. how long will it take to earn $220 in interes
    12·1 answer
  • Under a fixed exchange rate system, the government bears the responsibility to ensure that the BOP is near zero. If the sum of t
    9·1 answer
  • If Baldwin issued 1000 shares of common stock at last year's end price, the effect on the balance sheet would be:________
    11·1 answer
  • David borrows $230,000 to buy a house. The mortgage rate is 4.5 percent and the loan period is 25 years. Payments are made month
    6·1 answer
  • The present value of a lump sum future amount:__________
    6·1 answer
  • All of the following are methods of evaluating the risk of a project except multiple choice the net present value profile a mont
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!