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tester [92]
3 years ago
15

If capital rents for $25 per unit per hour, labor can be hired for $9 per unit per hour, the level of total factor productivity

is normalized to 1, and the firm is minimizing costs.(a) Determine whether the production function exhibits diminishing marginal returns to each input.
Business
1 answer:
Soloha48 [4]3 years ago
4 0

Answer:

Following are the solution to the given question:

Explanation:

The decrease of a marginal input return implies that its input is increasing by one unit, thereby decreasing its marginal input product.

Function of production

F(K, L) = AK^{\frac{3}{4}} L^{\frac{3}{4}}

Its capital products subject (MPK) is derived by differentiating the factor of production from K.

MPK = \frac{3}{4}\times AK^{\frac{3}{4}} - 1L^{\frac{3}{4}}\\\\MPK = \frac{3}{4}AK^{-\frac{1}{4}}L^{\frac{3}{4}}\\\\MPK = \frac{3}{4}\times A\times (\frac{L^{\frac{3}{4}}}{K^{\frac{1}{4}}})

Note: When a value is changed from numerator to denominator, then the power symbol shifts between positive to negative.

Since k is in the denominator, K decreases \frac{3}{4}\times A\times (\frac{L^{\frac{3}{4}}}{K^{\frac{1}{4}}}), and therefore MPK is reduced.

There's hence a decreased effective return on capital again for production function.

Its marginal labor product (MPL) is determined by distinguishing the manufacturing function from L.

MPL = (\frac{3}{4})\times AK^{\frac{3}{4}}L^{\frac{3}{4}}-1\\\\MPL = (\frac{3}{4})AK^{\frac{3}{4}}L^{-\frac{1}{4}}\\\\MPL = (\frac{3}{4})\times A\times (\frac{K^{\frac{3}{4}}}{L^{\frac{3}{4}}})

The denominator of L reduces L (\frac{3}{4})\times A\times (\frac{K^{\frac{3}{4}}}{L^{\frac{3}{4}}}) and therefore reduces MPL.

So there is a decreasing marginal return to labor in the production function.

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A service is usually offered as part of a bundled package of services with a core service and one or more ____ services.suppleme
JulsSmile [24]

Answer:

A, supplementary

Explanation:

A supplementary service can be said to be an added service to an original service package.

That is, a supplementary service can be said to be an extra service or services that is embedded in a whole service.

For example, when you go to a tech store to have your hard drive replaced, a supplementary service such as general cleaning and routine check of your computer is included in the hard drive replacement service.

The main or core service is hard drive replacement while the supplementary service includes cleaning and routine check of other computer components.

Cheers.

4 0
3 years ago
Leupold & Stevens, Inc., makes Leupold scopes for rifles and has introduced a new scope that has the quality and performance
user100 [1]

Answer:

Penetration pricing

Explanation:

Is a marketing strategy used by businesses to attract customers to a new service or product.  By offering lower price during its initial offering, thats the way they do.   The lower price, helps a new producto or service penetrate the market and attract customers .

6 0
3 years ago
A branch of accounting that generates reports and information for the use of internal management for decision making purpose is
earnstyle [38]

Answer:

financial accounting and management accounting

8 0
3 years ago
Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the bo
grigory [225]

Answer:

The correct options are as follows

Buyers will pay all of the tax.

The price of Humbugs will rise to $60.

The quantity of Humbugs demanded will not change.

Explanation:

As the question is not complete, the complete question is found online and is attached herewith.

The options given are as follows

Sellers will pay all of the tax.

Buyers will pay all of the tax.

The price of Humbugs will rise to $60.

The price of Humbugs will rise by less than $10.

The quantity of Humbugs demanded will not change.

Now option 1 is not correct as the buyer has to pay the tax not the seller.

option 2 is correct

option 3 is correct

option 4 is not correct as the initial price is $50 and the new price is to be more than $60 thus the rise is more than $10.

option 5 is correct as the demand of the hamburger will remain the same.

5 0
3 years ago
Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2018. The manufacturing cost
Llana [10]

Answer:

$89,350

Explanation:

Calculation to determine the outstanding balance of the lease liability in Lone Star's December 31, 2018, balance sheet

First step is to calculate the Balance after first payment

Initial lease liability $130,000

Less: First payment $23,000

Balance after first payment $107,000

Second step is to calculate the Interest expense for June 30,2021

Interest expense for June 30,2021= $107,000*5%

Interest expense for June 30,2021=$5,350

Third step is to calculate the Principal payment for June 30,2021

Principal payment for June 30,2021=$23,000-$5,350

Principal payment for June 30,2021=$17,650

Now let calculate the Outstanding balance on June

Balance after first payment. $107,000

Less: Principal payment for June $17,650

Outstanding balance on June $89,350

Therefore the outstanding balance of the lease liability in Lone Star's December 31, 2018, balance sheet is $89,350

8 0
3 years ago
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