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Bas_tet [7]
2 years ago
7

A firm produces truffles by using labor and capital. The price of labor is $10 per unit, and the price of capital is $20 per uni

t. At current output level, the marginal product of labor is 40 truffles and the marginal product of capital is 60 truffles. To reduce the total cost of producing the current quantity of truffles, how should the firm change its spending on labor and capital
Business
1 answer:
posledela2 years ago
7 0

Answer: See explanation

Explanation:

With the information given in the question, the firm should change its spending on labor and capital by increasing its labor and at thesame time, also reducing capital.

This is because since the marginal product of labor is 40 truffles and the price of labor is $10 per unit, it means that 4 truffles/dollar is being spent on labor, while for capital, 3 truffles/dollar is being spent.

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A

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3 years ago
If a congressional leader passes a bill favorable to a particular pharmaceutical firm, then resigns to take a consultant positio
umka21 [38]

The answer to this question is that it is an example of regulatory capture.

<span>Regulatory capture is a situation where in the interest of the business or firm is being prioritized by the firm in order for them to advance and succeed. There are two types of regulatory capture; a materialistic capture and non-materialistic capture.</span>

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3 years ago
An anticipated purchase of equipment for $1,000,000, with a useful life of eight years and no residual value, is expected to yie
exis [7]

Answer:

3 years

The average rate of return method includes the entire amount of the income earned over the life of the proposal.

a. rate of return on investments

b. may be reconsidered if funds later become available.

Explanation:

Cash payback period measures how long it takes to recover the amount invested in a project from the cumulative cash flow.

Amount invested = $-1,000,000

Amount recovered in year 1 = $-1,000,000 + $400,000 = $-600,000

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The amount invested is recovered In the 3 year

Average accounting rate = average net income/ average book value

Net present value is the present value of after tax cash flows from an investment less the amount invested. The interest rate used is the rate of return on investments.

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I hope my answer helps you

8 0
3 years ago
A university is trying to determine what price to charge for tickets to football games. At a price of ​$24 per​ ticket, attendan
m_a_m_a [10]

Answer:<u><em>  Price per ticket should be charged in order to maximize​ revenue is $15.</em></u>

<u><em>70000 people will attend at this price.</em></u>

<u><em></em></u>

Explanation:

Let 'x' represent the decrease .

Using the given information,

Price per ticket = 24 - 3x

Average no. of people that watch the game = 40000 + 10000x

Additional money spent by every person = 6(40000 + 10000x)

Revenue [R(x)] = Price per ticket \times Average no. of people that watch the game + Additional money spent

Revenue [R(x)] = (24 - 3x)\times(40000 + 10000x) + 6(40000 + 10000x)

On solving the above equation we get ,

Revenue [R(x)] = -30000x^{2} + 180000x + 1200000

In order to find the critical point we'll differentiate the following with respect to x;

R'(x) = -60000x + 180000

∵ R'(x) = 0  

x = 3

<u><em>Thus, the price per ticket that should be charged in order to maximize​ revenue is (24 - 3\times3 = 24 - 9 = $15)</em></u>

<u><em>People that will attend at this price = (40000 + 10000\times3) = 70000</em></u>

7 0
3 years ago
Typing, Inc. has been an S corporation since its inception. On July 4, 2019, Typing distributed $50,000 to Jerusha. Her basis in
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3 0
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