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
klasskru [66]
2 years ago
11

Suppose that production for good X is characterized by the following production function, Q = K0.5L0.5, where K is the fixed inp

ut in the short run. If the per-unit rental rate of capital, r, is $15 and the per-unit wage, w, is $5, then the average fixed cost of using 16 units of capital and 25 units of labor is:
Business
1 answer:
Ad libitum [116K]2 years ago
8 0

Answer:

B). $12

Explanation:

As per the given data, the AFC(Average Fixed Cost) for employing 25 factors of labor and 16 factors of capital would be $12.

We are given the production function,

Q = K^{0.5} L^{0.5}

where,

K = allotted input in short-term

Rental rate of each unit/factor(r) = $15

Wage per factor(w) = $5

As we know, the two inputs are labor, as well as, capital;

To find AFC, we need TC;

so,

TC = (Fixed cost + Variable cost)

TC = (240(15 * 16) + 125(25 * 5) = 365

Thus,

AFC = $ 12

You might be interested in
MC Qu. 166 Joe Jackson opened Jackson's... Joe Jackson opened Jackson's Repairs, Inc. on March 1 of the current year. During Mar
____ [38]

Answer:

D. $ 10,300

Choice D is correct:  Net income = $ 10,300

Explanation:

Cash Received =                                 $ 16000

Less Rent Paid=                                    ( $ 2000)

Add income =                                          $ 3000

Less Salaries for the month of March = ($ 6200)

Less utilities paid                                       ($ <u>500)</u>

<u>Net income=</u>                                               $ 10,300

Treatments.

Net income is found by deducting expenses from revenues earned

$ 100,000 is the retained earnings so it is not accounted for net income.

Equipment is an asset so it is not accounted for net income.

Cash received is the revenue so it is accounted.

Rent is an expense account so it is subtracted.

Income for service $ 3000 provided is also taken into account on matching principle basis.

Advance received will be adjusted when the services will be rendered on matching principle.

6 0
3 years ago
Melissa is a self-employed lawyer who chooses a higher-priced restaurant 2 miles from home over a cheaper restaurant 15 miles fr
kiruha [24]

Answer:

Option (E) is correct.

Explanation:

The opportunity cost refers to the benefits that are sacrificed by choosing some other alternative.

In our case, there are two restaurants as follows:

One is 2 miles away from home with higher prices

Second one is 15 miles away from home with lower prices

But Melissa chooses the first one by comparing the opportunity cost associated with each option relative to the other option.

This is because of the higher opportunity cost associated with second restaurant offsets the higher monetary cost of the first restaurant.

4 0
3 years ago
A coal company invests $12 million in a mine estimated to have 20 million tons of coal and no salvage value. it is expected that
lilavasa [31]
2 percent is the depletion
5 0
2 years ago
Characteristics of just-in-time partnerships do NOT include: long-term contracts. removal of in-transit inventory. large lot siz
otez555 [7]

Answer: large lot sizes to save on setup costs and to gain quantity discounts.

Explanation:

Just in time is the kind of system where your material or component arrives just when you require them and does not take up time. This is helpful in saving storage cost. Just in time however, does not include large lot sizes to save on setup costs and to gain quantity discounts.

8 0
3 years ago
arget Profit Refer again to the income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income
Darya [45]

Answer: $489,000

Explanation:

Amount of sales required  = (Fixed cost + Desired operating income ) / Contribution margin ratio

Contribution margin ratio for Cover-to-Cover Company:

= Contribution margin / sales

= 77,800/ 389,000

= 20%

Desired operating income = Current income + income increase

= 58,350 + 20,000

= $78,350

Amount of sales required:

= (19,450 + 78,350) / 20%

= $489,000

3 0
3 years ago
Other questions:
  • Five Seasons is a merchandiser of packed foods. The company provides the following information for the​ year: Sales Revenue $ 15
    13·1 answer
  • MaverickMaverick Co. budgets production of 120 comma 000120,000 units in the next year. MaverickMaverick​'s CFO expects that eac
    11·1 answer
  • For franklin, inc., sales is $1,500,000, fixed expenses are $450,000, and the contribution margin ratio is 36%. what are the tot
    10·1 answer
  • The extent to which an innovation can be imitated by a competitor depends on
    10·1 answer
  • Which of the following statements about federal student loans is true
    15·1 answer
  • Although gdp is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production
    13·1 answer
  • The final part of the strategy-formulation process is choosing: a. functional-level strategies. b. functional-level goals. c. bu
    10·1 answer
  • It is the list of material or ingredients for a project​
    9·1 answer
  • matthew has written his mission, vision, and value statements. he has completed his organizational assessment. what is his next
    11·1 answer
  • A chemical bond resulting from the sharing of electrons between two elements with very similar electronegativity are indicative
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!