Answer:
The correct answer is option a.
Explanation:
The monthly total revenue is $5,000.
The marginal cost of producing 19th, 20th and 21st unit is $200.
Laura will earn profit if the price is able to cover marginal cost.
Total revenue is the product of price and quantity.
Price of cake when Laura produces 19 units
= 
= 
= $263.15
Price of cake when Laura produces 20 units
=
= 
= $250
Price of cake when Laura produces 21 units
=
=
= $238.09
So we see that the price is able to cover marginal cost till 21st units, so Laura should produce more than 20 units and go on producing till price becomes equal to marginal cost.
Answer:
C. optimal capital labor ratio remains the same
Explanation:
One pilot for each plane implies A = B
Let cost be C
So, isocost line is xA + rB = C
So, xA + yA = C (as L = K)
So, (x+y)A = C
So, A = C/(x+y) =B
Optimal capital labor ratio = B/A = 1 as B =A
Now, wage rate increases to x'
So, isocost line is x'A + yB = C
So, x'A + yA = C (as A = B)
So, (x'+y)A = C
So, A = C/(x'+y) = B
New optimal capital labor ratio =B/A = 1 as B = A
Thus, optimal capital labor ratio remains same because capital (planes) and labor (pilots) are used in fixed proportion.
Thus the answer is
C. optimal capital labor ratio remains the same
4. As it is not the finance departments job to keep up with reputation and how they look.
Answer:
1.3%
Explanation:
The real interest rate is calculated by subtracting the inflation rate from the nominal interest rate.
real interest rate=nominal interest rate-inflation rate
nominal interest rate=4.7%
inflation rate= 3.4%
real interest rate=4.7%-3.4%
real interest rate=1.3%
According to this, the answer is that the real interest rate is 1.3%.
