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Dimas [21]
2 years ago
6

Consider a perfectly competitive firm that produces computers. Each additional worker at this firm can produce four computers. C

alculate the marginal factor cost if the computers are sold for $1,000 each, and the firm is maximizing profit. (Assume that marginal revenue product is the product of marginal product of the input and the marginal revenue of the firm.)
Business
1 answer:
Lesechka [4]2 years ago
6 0

Answer:

$4,000

Explanation:

Each additional labor can produce 4 computers and each computer is sold for $1,000. This mean that the value of the marginal product of labor is $4,000 (1,000*4). At equilibrium, the value of marginal product of labor equals the wage rate. Therefore, the marginal factor cost is $4,000.

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Each firm in a competitive market has a cost function​ of: Upper C equals 25 plus q squared​, so its marginal cost function is M
Effectus [21]

Answer and Explanation:

The computation is shown below:

TC = 25 + q^2

Now

Marginal cost is

= dtc ÷ dQ

= 2q

Average variable cost  (AVC) = q

We Assuming perfect competition so there is a free entry so no profits

Therefore

ATC = P

ATC = TC ÷ q  

= q + 25 ÷ q

Now

MC = MR = P = ATC

2q = q + 25 ÷ q

q = 25 ÷ q

q^2 = 25

So, Quantity per firm = q = 5

Now

P = MC = MR = ATC

= q + 25 ÷ q  

= 5 + 25 ÷ 5  

= 5 + 5

= 10

hence, equilibrium price is 10

Now

Q = 35 - P  

= 35 – 10

= 25

Hence, Market quantity (Q)  = 25

And, the number of firms i.e n

N = Q ÷ q  

= 25 ÷ 5

= 5

3 0
3 years ago
Which of the following is not included in Michael Porter's Five Forces Model? a. Cost Leadership b. Supplier Power c. Threat of
grigory [225]

Answer:

a. Cost Leadership

Explanation:

Porter five forces of the model refers to the rivalry among competitors, bargaining power of suppliers, bargaining power of buyers, the threat of new entrants, the threat of substitution.  

The competition between rivals deals with the competitors ' strengths and weaknesses so that the business does the planning appropriately.

The supplier's bargaining power indicated that the shift in the price of the product caused by the supplier's offer and the consumer is motivated to the product as the product is special which affects the overall profit

The buyer's bargaining power relates with the number of buyers and how many orders a single buyer places.

The threat of new entrants will affect the company's total position if the competitor comes on the market.  

The threat of substitution is an alternate way of producing the goods and services that can also weaken your position and have a direct impact on profitability.

6 0
3 years ago
What kind of risk is associated with product innovations in the early stage that design thinking helps to mitigate?.
Sergio039 [100]

Financial risk is the kind of risk connected to early-stage product developments that design thinking helps to reduce.

<h3>What is meant by risk?</h3>

Risk is the possibility of anything going wrong. It concerns the ambiguity surrounding the actions' consequences. Risk is the price a businessman pays to make money.

The risk connected to the organization's financial resources is known as financial risk. It appears during the product development process.

Therefore, it can be stated that financial risk is a type of risk that can be reduced by creative thinking when it comes to early-stage novel concepts.

Thus, Financial risk is the kind of risk connected to early-stage product development.

For more details about Risk, click here:

brainly.com/question/25404945

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7 0
2 years ago
Your company expects profits to be close to $4,000,000. The board has instructed you to increase retained earnings by approximat
artcher [175]

The amount of dividends and dividend price per share comes out to be $2,000,000 and $20 when the number of shares is assumed to be 100,000.

<h3>What are dividends?</h3>

Dividends are the amounts allocated to share investors by the company up to their shareholdings. It is the amount that is first provided to preferred stock investors.

Given values:

Expected profits: $4,00,000

Increase in Retained earnings: $2,000,000

The number of shares is assumed to be 100,000.

Computation of dividend per share;

\rm\ Dividend \rm\ per \rm\ share=\frac{\rm\ Expected Profits-\rm\ Increase \rm\ in \rm\ Retained \rm\ Earnings}{Number of shares} \\\rm\ Dividend \rm\ per \rm\ share=\frac{\$4,00,000-\$2,000,000}{100,000} \\\rm\ Dividend \rm\ per \rm\ share=\frac{\$2,000,000}{100,000} \\\rm\ Dividend \rm\ per \rm\ share=\$20

Therefore, the amount of the dividend is $2,000,000 at a share price of $20 to be paid this year.

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6 0
2 years ago
What are colonias? mexican factories that have high death rates due to poor working conditions. rural, unincorporated slums on t
garri49 [273]
Unincorporated slums on the texas side of the border that have substandard housing
6 0
3 years ago
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