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]
3 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]3 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
Tara has found a CTSO she’s interested in joining. How can Tara become a member of the CTSO? Tara can become a member of the CTS
ICE Princess25 [194]

membership fee. should be correct

3 0
3 years ago
Read 2 more answers
he condensed balance sheet and income statement for Marjoram Company are presented below. MARJORAM COMPANY Balance Sheet At Dece
Juliette [100K]

Answer:

current ratio  for MARJORAM  = Current asset / current liabilities

                                                   =  $173,000/ $108,400

                                                    =  1.59

Explanation:

step 1 :calculate the total current asset of the company which is calculated below.

current asset

Cash                         $19,000

Note Receivable         35,000

Account Receivable    48,400

Inventory                    <u>  70,600</u>

Total                         <u> 173,000</u>

Note receivable is included in the current asset because its due date is less than 12 months.

step 2 : divide the current asset by the current liabilites in order to determine the current ratio

7 0
3 years ago
Suppose for a given consumer the marginal utility (MU) of a pizza is 100 utils and the MU of a hamburger is 80 utils, and that t
NemiM [27]

Answer:

<u>is not</u> , <u>consume more of hamburgers</u>

Explanation:

A consumer is said to have achieved equilibrium when within his budget constraint, he purchases that combination of two goods which yield maximum satisfaction to him.

The equation for consumer equilibrium for two products is given by

\frac{MU_{x} }{P_{x} } = \frac{MU_{y} }{P_{y} }

In the given case, \frac{MU_{x} }{P_{x} } = \frac{100}{15} = \frac{20}{3} = 6.666

                            \frac{MU_{y} }{P_{y} } = \frac{80}{10}    = 8

wherein, x= pizza

              y= hamburger

As is evident, the marginal utility per dollar spent is greater in case of a hamburger, the consumer is not in a state of equilibrium.

Thus, he should consume more units of Hamburgers in order to maximize his utility.

3 0
3 years ago
The statement, "You are more likely to control risks when they are identified earlier rather than later" is associated with what
yawa3891 [41]

Answer:

Risk Control

Explanation:

The statement, "You are more likely to control risks when they are identified earlier rather than later" is associated with the Risk Control Management principle.

Risk control is more effective when risk identification is undertaken early enough so that control measures are put in place to mitigate such risks, otherwise there will be a shift from 'risk control' to 'damage control' once any of those risks materializes.

7 0
3 years ago
Gross Profit MethodBased on the following data, estimate the cost of the ending merchandise inventory:Sales (net) $1,450,000Esti
Mariulka [41]

Answer:

Ending inventory= $119,000

Explanation:

Giving the following information:

Sales (net) $1,450,000

Estimated gross profit rate of 42%

Beginning merchandise inventory $100,000

Purchases (net) 860,000

Merchandise available for sale $960,000

Cost of goods sold= 1,450,000*0.58= 841,000

Ending inventory= 960,000 - 841,000= 119,000

5 0
3 years ago
Other questions:
  • You borrowed $185,000 for 30 years to buy a house. The interest rate is 4.35 percent, compounded monthly. If you pay all of your
    13·1 answer
  • Tobin Supplies Company expects sales next year to be $500,000. Inventory and accounts receivable will "increase $80,000" to acco
    11·1 answer
  • SEU Co. has preferred stock outstanding that is expected to pay an annual dividend of $4.88 every year in perpetuity. If the req
    11·1 answer
  • Franklin corporation issues $50,000, 10%, five-year bonds on january 1 for $52,100. interest is paid semiannually on january 1 a
    11·2 answers
  • Suppose in New York £/$ = 1, while in Tokyo ¥/$=2.5, but in London £/¥ = 0.50. (a) (2) Is there any profit that could be made wi
    8·2 answers
  • As described in your text, Brown and Finn (1982) found that attitudes regarding alcohol were somewhat different for 12-year-olds
    13·1 answer
  • On 12/31/10, Heaton Industries Inc. reported retained earnings of $675,000 on its balance sheet, and it reported that it had $17
    9·1 answer
  • The difference between who you
    6·1 answer
  • The consumer price index is
    13·1 answer
  • How is the advancement of technology blurring the lines between humans and non- humans?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!