Answer:
Revenue is money earned by a business, or income received by the government from taxes
Explanation:
Answer:
a) perfectly competitive market
b) perfectly competitive market
c) 5 workers
d) 46 units
e) Profit of $73
Explanation:
a) The firm sells its output at the present market price, the firm has control of the market prices therefore this is a perfectly competitive market.
b) The firm can hire all of the workers it wants at a market wage rate, this means that the labor market is also perfectly competitive.
c) We have to first calculate the marginal revenue product (MRP) of each worker. The marginal revenue product of the last worker must be equals his wage rate in order to maximize profits. Hiring new workers as every additional employee adds less to the total revenue than to the costs of the firm.
MRP = Marginal product × Price.
Price = $3
Number of Total Marginal Marginal Revenue
Employees Output Product (MP) Product $ (MRP = MP * P)
0 0
1 14 14 52
2 26 12 36
3 35 9 27
4 42 7 21
5 46 4 12
6 48 2 6
The MRP of each of the first 5 employees is higher than their wage rate ($11). The firm should hire 5 workers to maximize profit
d) The output of 5 workers is 46 units
e) Fixed cost = $10
Variable cost = number of workers × wage rate = 5 × $11 = $55
Revenue = output × price per unit = 46 × $3 = $138
Profit = Revenue - variable cost - fixed cost = $138 - $55 - $10 = $73
<span>If Octavio wants to compare
the gross national product for six different countries for the year 2016, he can best show his information by
combination charts.</span><span> For example, you can combine a line
chart or a bar chart that shows the gross national product (GNP) range with a
column chart that shows GNP per country. The two variables are set as Y and X
axis respectively.</span>
Answer:
ii. Her accounting profit was $150,000
iii. Her economic profit was $50,000
Explanation:
The computation is shown below:
For accounting profit, it is
= Total revenues - total expenses i.e explicit cost
= $250,000 - $100,000
= $150,000
And, for economic profit
= Total revenues - total cost i.e explicit and implicit cost
= $250,000 - $100,000 - $100,000
= $50,000
Hence, the second and third options are correct
Answer:
The company paid a lower cost per hour for labor than allowed by the standards.
Explanation:
<em>The labour cost variance is the difference between the standard labour cost allowed for the actual hours worked and the actual labor cost for the same hours</em>
<em>The labour cost variance compares the actual cost and the standard cost for the actual labour hours paid for.</em>
Hence , Poseidon Marine Stores Company would have paid a sum for labour cost which is lower than the standard cost.
The company paid a lower cost per hour for labor than allowed by the standards.
