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
morpeh [17]
3 years ago
11

An economy initially has 200 units of physical capital per worker. Each year, it increases the amount of physical capital by 10%

. According to the aggregate production function for this economy, each 1% increase in physical capital per worker, holding human capital and technology constant, increases output per worker by 0.25%. If there is no inflation and output per worker is initially $1,000, what does the estimated output per worker equal after one year
Business
1 answer:
zloy xaker [14]3 years ago
7 0

Answer:

$1,025

Explanation:

Given that,

Initial physical capital per worker = 200 units

Percentage increase in physical capital per year = 10%

Initial output per worker = $1,000

Holding human capital and technology constant,

1% increase in physical capital per worker = 0.25% increase in the output per worker

Hence, if there is a 10% increase in physical capital each year then the increase in output per worker each year is calculated as follows:

= 10 × 0.25%

= 2.5%

Therefore, the estimated output per worker equal after one year:

= Initial output per worker + Increase in output per worker each year

= $1,000 + ($1,000 × 2.5%)

= $1,000 + $25

= $1,025

You might be interested in
The empirical evidence indicates that compared to economies that are less free, countries with institutions and policies more co
Aleks04 [339]

Answer: The empirical evidence indicates that compared to economies that are less free, countries with institutions and policies more consistent with economic freedom C. grow more rapidly and achieve larger poverty rate reductions.

Explanation: Countries that have policies in place are more likely to achieve growing at a faster rate and reductions because their people follow the rules and work hard to meet the expectations of the person in charge of their country. Free countries normally do not have steps in place to have a strong economic system and supporters of it.

6 0
3 years ago
Three years ago, Vincent Chow completed his degree in accounting. The economy was in a depressed state at the time, and Vincent
m_a_m_a [10]

Answer:

Prerequisite 1  

There are three nonexclusive serious techniques:  

Cost Leadership - target showcase exceptionally broad, point is to have the most minimal cost. Items not specific, attempt to speak to shoppers because of their low costs.  

Separation - items or administrations gave elite highlights that clients need, commonly an increasingly devoted specialty. Ready to charge more significant expenses because of these additional highlights.  

Center Strategy - either a cost authority or a separation methodology, yet focused for a tight, engaged market.  

Vincent's business utilizes a Focus Strategy. The Cappuccino Express was made with the conviction that because of individuals' evolving schedules, comfort would be vital – giving speedy and advantageous espresso to occupied individuals.  

Prerequisite 2  

Basic Success Factors are the vital money related and non-monetary proportions of achievement. To be increasingly explicit Critical Success Factors are features of the association's exhibition that are essential to its upper hand.  

The Cappuccino Express Critical Success Factors :  

Quality and cost of existing items  

Areas specific..near Malls , schools , workplaces and so forth.  

Devise new items at customary interims  

Client Turnover – capacity to keep lines short, vehicles traveling through line  

Keeping Loyal clients with quality items along these lines diminishing ad costs  

Giving incredible client support  

Improving Profitability  

The greater part of these Vincent will have the option to show some power about whether it is adjusting costs, items, guiding various areas or making preparing programs. Then again, if Vincent's essential supposition never again remains constant, regardless of what he does he will most likely be unable to equal the initial investment, not to mention turn a benefit.  

Prerequisite 2  

Vincent needs to leave on numerous assignments in dealing with The Cappuccino Express. To start with, Vincent must blueprint a statement of purpose, objectives, and destinations. As supervisor, Vincent must do statistical surveying. He should get some answers concerning his rivals, clients, and the economy. Additionally, he should utilize a workforce and train them. He should isolate the expenses into assembling costs (direct materials, direct work, and assembling overhead) and non producing costs (selling and managerial expenses). This will take into account monetary observing and precise gauges of benefits, stock, and expenses. Vincent ought to assess both of his areas and conclude whether to remain in business or grow. Additionally, Vincent ought to evaluate his item contributions, administrations, and quality. He can choose which sorts of publicizing (advancements and limits) to offer.

8 0
3 years ago
Beth and Bob Martin have total take-home pay of $4,600 a month. Their monthly expenses total $3,450. Calculate the minimum amoun
blsea [12.9K]

Answer:$10,350

Explanation:

3,450* 3 (month minimum) = 10,350

6 0
3 years ago
Assume J. K. Lumber increases its operating efficiency such that costs decrease while sales remain constant. As a result, given
Mars2501 [29]

Answer:

D) return on equity will increase.

Explanation: Return on equity is a financial term that explains the net income of a business venture. There are several ways through which the return on equity can be improved or increased in business.

(1) Reduction in the cost of operations or production of goods and services

(2) increase in the price of the product etc.

If the cost of producing a given Quantity of goods is reduced with sales remaining constant,THE RETURN ON EQUITY WILL INCREASE AS A RESULT OF THE INCREASE IN NET INCOME DUE TO REDUCED COST OF OPERATIONS OR PRODUCTION OF GOODS.

7 0
3 years ago
Read 2 more answers
A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's una
const2013 [10]

Answer:

Debit Bad Debts Expense $2,939; Credit Allowance for Doubtful Accounts $2,939

Explanation:

Estimated Uncollectibles based on the past experience = $803,000 * 0.3%  

=$2,409

Debit balance in allowance for doubtful accounts = $530

The total amount of Bad Debts Expense to be provided in the adjusting entry = $2,409 + $530

= $2,939

3 0
3 years ago
Other questions:
  • Carmen is having her basement refinished. She notices that the flooring was installed hastily and is uneven. Who should she talk
    14·1 answer
  • A project is expected to produce cash flows of $12,800, $15,900, and $18,000 over the next 3 years, respectively. After 3 years,
    14·1 answer
  • Which of the following is NOT true? Group of answer choices A call option gives the holder the right to buy an asset by a certai
    8·1 answer
  • On April 1, the price of gas at Bob’s Corner Station was $3.50 per gallon. On May 1, the price was $4.00 per gallon. On June 1,
    13·1 answer
  • Florence’s Florals, a retail business, started a $250 petty cash fund on June 1. Below are descriptions of the transactions to e
    12·1 answer
  • Which of these emotions are personal benefits of work?
    11·2 answers
  • Help me please.. there is no option on here for Human Resources principals, so I jus clicked business as the subject..
    13·1 answer
  • Lester's Markets has total revenues of $3,811, costs of $2,902, depreciation of $315, interest expense of $168, and taxes of $89
    11·1 answer
  • List Five products not in the Market​
    14·1 answer
  • In order to successfully carry out an acquisition, the managers at Pink Inc. prepared a list of potential target companies that
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!