Answer:
$0.808
Explanation:
Given:
Number of workers hired = 6
Number of units to be produced = 90
Fixed cost of the product = $6 per unit
Variable cost = $10 per unit
Marginal product of the 7th unit of labor = 4
Now,
Total variable cost = Variable cost per unit labor × Total labor hired
or
The total variable cost = $10 × 7 = $70
Thus,
The total cost = Fixed cost + Total variable cost
or
The total cost = $6 + $70 = $76
Now,
the total units produced
= Unit produced by 6 labor + marginal product from seventh labor
or
The total units produced = 90 + 4 = 94
Hence,
the average variable cost of production when the firm hires 7 workers
= 
or
= 
= $0.808
Answer:
Level of sales in dollars in order to generate a profit of $54,000 Fixed cost + Target profit/Contribution per unit $270,000 + $54,0000/0.75
= $432,000
Number of units to be sold
= Level of sales/Selling price
= $432,000/$36
= 12,000 units
The correct answer is A
Explanation:
In this case, we need to calculate level of sales in dollars, which is fixed cost plus target profit divided by contribution margin ratio. Then, we will calculate no of units to be sold, which is the level of sales divided by selling price.
Answer:
It isn't a violation of the law of demand. It is as a result of the elasticity of demand.
A tax is a compulsory sum levied on a good or service. Taxes increases the price of products. In determining whom should bear the greater burden of the tax between the consumer and the seller, elasticities are usually considered. The party with either a relatively inelastic supply or demand bears the greater burden of tax while the party with the more elastic demand or supply bears less burden of tax.
Demand (supply) is elastic if a small change in price has a greater effect on the quantity demanded (supplied).
Demand (supply) is inelastic if a small change in price has little or no effect on the quantity demanded (supplied).
For good X, consumers have an inelastic demand so they bear more of the tax Burden. As a result of the tax, price increases, yet the quantity demanded doesn't change. Therefore, the total revenue would rise.
For good Y, consumers have an elastic demand. Therefore, they bear less burden of tax. As a result of the increase in price, the quantity demanded falls and total revenue falls.
Explanation:
Answer:
B
Explanation:
The capital market serves as an intermediator between households and firms. In a classic economic model, households are owners of capital resources, but firms need these resources to operate. Then, the capital market allows that households rent their capital resources to firms and firms pay them back. It is a beneficial allocation of resources for households and for firms.
