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borishaifa [10]
2 years ago
10

The production function for fish harvesting is Cobb-Douglas. Currently, the Marginal Rate of Technical Substitution (MRTS) betwe

en Labor (L) and Capital (K) is higher than the wage to rent ratio (MRTS > w/r). This means that, a. More labor and less capital should be used to lower costs b. More capital and less labor should be used to lower costs c. Labor and Capital being used are already minimizing costs d. We need to know the fixed costs of production to determine if costs are minimized or not
Business
1 answer:
n200080 [17]2 years ago
4 0

Answer:

a. More labor and less capital should be used to reduce cost.

Explanation:

Condition for profit maximization is where the Marginal rate of technical substitution = Ratio of factor-input prices. This condition is known as a Producer Optimum in Long Run. MRTS itself is the ratio of Marginal Productivity of Labor to Capital. Thus, MRTS > w/r implies that Relative marginal productivity of labor is greater than relative cost of labor. This means that labor comes cheaper than capital when both their productivities are compared. So it is profitable to employ more labor than capital. This will continue till wages increase up to the point where MRTS = w/r.

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Lehman Corp. has two departments: Assembly and Testing. Assembly department had beginning inventory of 750 units which were 50%
algol13

Answer:

Total equivalent unit     1,425 units

Explanation:

<em>Under the first-in -first out system, to account for the units completed in a period, it is assumed that the opening inventory units are first completed and the balance represents the newly introduced.</em>

<em>Fully worked represents unit of inventory started this this period and completed this period</em>

Fully worked = completed units - opening inventory

Fully worked = 1200 -750 = 450 units

Item                        Units                                     Equivalent Units

Opening WIP         750     750×50%                     375

Fully worked          450      450× 100%                   450

Closing WIP           800       800× 75%                 <u> 600</u>

Total equivalent unit                                              <u>1,425</u>

Note the opening inventory has 50% work done last period so the balance of 50% i.e (100 - 50)  is completed this period

     

5 0
3 years ago
Of the world's population of 7.5 billion people, _________ are scraping by on incomes that average less than $2 per day.
ozzi
1.1 billion? According to unicef 3 billion earn less than $2.50 so this seems like the appropriate answer.
3 0
3 years ago
If the structural unemployment rate is 3%, the frictional unemployment rate is 2%, and the cyclical unemployment rate is 4%, the
Damm [24]

Answer:

False

Explanation:

In this scenario, the natural rate of unemployment would be 5% = 3% of frictional unemployment plus 2% of cyclical unemployment. The other type of unemployment that is part of the natural rate is not referenced in the question (surplus unemployment).

Cyclical unemployment is not added up because it is not part of natural unemployment.

In fact, what natural unemployment basically is, is unemployment that does not depend on business cycle, that is not cyclical. In that sense, cyclical unemployment is totally the opposite to natural unemployment, and you only reach a rate of natural unemployment, when cyclical unemployment is eliminated in a healthy economy.

5 0
3 years ago
Suppose that you are participating in a game show. so far, you have won $10,000 free of tax and can leave with your winnings.how
olga nikolaevna [1]

Answer

I would stop playing and leave with the $10000 free of tax

Explanation

The truth in such games is that they are not designed to be exactly 50/50. There are possibilities for outcomes that will tie or loose. Furthermore, a game that is really 50/50, the house will deduct some commission. These games always have a room for the house advantage, thus for me, I will just go with $10000 fortune!


3 0
3 years ago
Read 2 more answers
Goods that are normally consumed together, like peanut butter and jelly, are what kind of goods?select one of the options below
BigorU [14]
<span>The answer is a. complementary </span>
5 0
3 years ago
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