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
julsineya [31]
3 years ago
14

Suppose the current level of output is 5000. If the elasticities of output with respect to capital and labor are 0.3 and 0.7, re

spectively, a 10% increase in capital combined with a 5% increase in labor and a 5% increase in productivity would increase the current level of output to :_______
Business
1 answer:
Tamiku [17]3 years ago
3 0

Answer:

5575

Explanation:

The computation is shown below;

<u>Factor      Elasticity          Increase        Effective Increase </u>

                      A                        B      A × B

Capital      0.3                                 10%      3.00%

Labor        0.7                                  5%       3.50%

Increase due to Productivity                      5.00%

Total Increase in Output                             11.50%

(3% + 3.5% + 5%)  

Original Output                                              5000

Increase in Output (5000 × 11.5%)                 575

Increase Output (5000 + 575)                      5575

You might be interested in
Modern Federal Bank is setting up a brand-new branch. The cost of the project will be $1.2 million. The branch will create addit
KonstantinChe [14]

Answer:

23.12%

Explanation:

Internal rate of return (IRR) is the rate at which the Net present value (NPV) of a project equals to zero.

Using a financial calculator and the CF function, input the following to find IRR;

Initial investment; CF0 = -1,200,000

Yr1 cashflow inflow ; C01 = 235,000

Yr2 cashflow inflow ; C02 = 412,300

Yr3 cashflow inflow ; C03 = 665,000

Yr4 cashflow inflow ; C04 = 875,000

Then key in IRR CPT = 23.119%

Therefore, the Internal rate of return this expansion is 23.12%

3 0
3 years ago
How did huge industrial trusts develop in industries such as steel oil and banking, what was the effect on the economy?
aalyn [17]
The huge industrial trusts developed in industries such as steel and oil because there was a lot of competition to make the most profit and to be the best factory. Oil was a huge cooperation because it fueled the trains. Smaller bothersome rival companies would join bigger ones to create a monopoly. Standard oil owned by Rockefeller was a vast power and the word trust came to be generally used to describe any large scale business combination. Steel became a large industry for the fact that it was a strong metal that built the trains and tall sky scrappers. Also steel was used to build the transcontinental rail roads The Bessemer process came about which was a method of making cheap steel. It made the economy a more cut throat environment of dog eat dog and became ruthless. The economy was about power and money and was very greedy. Immigrant workers were employed with very low wages and worked laboriously many hours a day. Their effect on the economy was to create large <span>monopolies, their effects were tremendous.</span>
3 0
3 years ago
You are the curator of a museum. The museum is running short of funds, so you decide to increase revenue. What should you do to
SVETLANKA909090 [29]

Answer and explanation:

Demand elasticity measures the changes in quantity demanded as the result of changes in price. Demand elasticity is calculated by dividing the percentage change in quantity demanded by the percentage change in price. If the result is equal or higher than one (1) the product is <em>elastic </em>but if the result is lower than 1 the product is <em>inelastic</em>.

In the case, <em>as the elasticity of demand of the museum ticket is 0.45 it means the museum tickets is inelastic. This scenario implies that in front of changes of price the quantity demanded will not change. Thus, as a curator of the museum you should </em><u><em>increase the museum ticket price to increase revenue</em></u><em>.</em>

3 0
3 years ago
Critically review the organizational structure recommendations reported within the In-Plant Printer article titled, "Organizing
marin [14]

Answer:

Explanation: see attachment below

4 0
3 years ago
A project is expected to generate annual revenues of $117,700, with variable costs of $74,800, and fixed costs of $15,300. The a
GarryVolchara [31]
It’s C $44,248 I hope this helps .
7 0
3 years ago
Other questions:
  • Walmart began offering low-priced extended warranties on home electronics after learning that its rivals such as Best Buy derive
    8·1 answer
  • A property has sold for $185,000. The listing agreement calls for a commission of 6.5%. The listing broker and selling broker ag
    12·1 answer
  • What is a major drawback of sole proprietorship?
    10·1 answer
  • In 2018, internal auditors discovered that Fay, Inc., had debited an expense account for the $700,000 cost of a machine purchase
    7·1 answer
  • Venus LLC is a large monopolistic electronic firm. The firm has been putting a lot of pressure on some of the complementor compa
    15·1 answer
  • In an economy with a population of 100 million persons, 42 million hold civilian jobs and 6 million are not working but are look
    14·1 answer
  • When an organization has a diverse set of employees that can provide insight and cultural sensitivity, this should improve the c
    10·1 answer
  • Match each type of media to the purpose that best suits it.
    5·1 answer
  • Tessa is in charge of planning a marketing campaign for a new type of candy. Tessa's
    10·1 answer
  • Fannie Mae and Freddie Mac are responsible for creating most of the commonly-used residential appraisal report forms.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!