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
slava [35]
3 years ago
12

Suppose that the price of labor is $7 for a firm, while the price of capital for a firm is $10. Also suppose that the Marginal P

roduct of Labor is 20, while the Marginal Product of Capital is 30. What is the best advice for this profit-maximizing firm?
Business
1 answer:
Slav-nsk [51]3 years ago
4 0

Answer:

The best advice for this profit-maximizing firm is:

Use more capital than labor.

Explanation:

a) Data and Calculations:

Price of labor = $7

Price of capital = $10

Marginal product of labor = 20

Marginal product of capital = 30

Productivity of labor = Output/Input

= 20/7

= 2.86

Productivity of capital = Output/Input

= 30/10

= 3

b) Capital is more productive than labor.  The productivity of capital is 3 when compared to the productivity of labor, that is 2.86.

You might be interested in
During the year, Cheng Company paid salaries of $24,000. In addition, $8,000 in salaries has accrued by the end of the year but
Burka [1]

Answer:

Correct answer is D. Credit to Salaries Payable for $8,000

Explanation:

Based on the basic underlying guideliness in accounting, specifically matching principle. All income and expenses should be reported during the period it incurred. Thus, all expenses incurred during the period even though it wasn't paid yet shoud be recorded to the book and that's the moment that the year-end adjusting entry is necessary.

On the above given problem, the salaries paid of $24,000 is presumed to have been recorded in the book already. Because it incurred and paid within the calendar period. In addition, the salaries accrued by the year end needs year-end adjustment<em> to recognize the salaries expense applicable for the period</em>. Journal entry of it is to debit salaries expense and credit salaries payable in the amount of $8,000.

6 0
3 years ago
Which of the following is a regular outcome of being late to work
Grace [21]
A regular outcome could be a lot of hate from co-workers and your boss, and eventually you might be put on admin leave or fired.
6 0
3 years ago
The returns on the Bledsoe Small-Cap Fund are the most volatile of all the mutual funds offered in the 401(k) plan. Why would yo
aalyn [17]

Answer:

The yields are perhaps the most unpredictable for the small cap fund since the securities in this account are the most risky. It does not mean that the fund is awful, only that the danger is greater, and thus the overall return is greater.If you are prepared to accept the extra risk in expectancy of a greater return, you should like to put money in this fund. The increased costs for this Fund will be anticipated.Small cap funds typically have higher spending due largely to greater operating costs, along with lower resource analysis.

7 0
3 years ago
Major Manuscripts, Inc., is currently operating at 70 percent of capacity. All costs and net working capital vary directly with
bagirrra123 [75]

The attached data is required to answer the question

Answer:

$535

Explanation:

In this scenario we need to calculate the additional debt required by Major Manuscript

We expect an increase of 10% of sales

Therefore

Total assets projected = 9,420 * 1.10 = $10,362

Accounts payable projected = 2,200 * 1.10 = $2,420

Current long term debt = $260

Current common stock = $2,400

Retained earnings projected = 4,560 +{(360 - 190) * 1.10} = $4,747

Additional debt required = 10,362 - 2,420 - 260 - 2,400 - 4,747

Additional debt required = $535

6 0
2 years ago
Many times, margin, instead of retailing price, becomes the firm's decision variable. Suppose we notice Kroger is selling Dove a
adoni [48]
Dove is about ___38%
4 0
2 years ago
Other questions:
  • Bailey Corporation manufactures and sells a number of products, including Product G. Results for last year for the manufacture a
    6·1 answer
  • Troy sells consumer electronics. He knows his customers weigh the costs versus the benefits associated with the different option
    14·1 answer
  • Suppose that in a population of 50 million persons, 40 million are in the labor force, 36 million are employed, 2 million are cl
    13·1 answer
  • Sunshine's Organic Market sells organic produce. Assume that labor is the only input that varies for the firm. The store manager
    7·1 answer
  • Two alternate plans are available for increasing the capacity of existing water transmission lines between an unlimited source a
    14·1 answer
  • Define national security​
    10·2 answers
  • Participative leadership is enhanced when:______
    8·1 answer
  • You've never had a job so decided that it's time to start applying. When filling out
    13·1 answer
  • With access to the Internet nearly universal in the United States, many potential market segments have become more perceptive. r
    12·1 answer
  • Most people would readily agree that the stock market is a. Not semi-strong form efficient b. Strong form efficient c. Semi-stro
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!