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babymother [125]
2 years ago
10

Assume that a profit-maximizing firm which competes in a purely competitive product industry has only two factor inputs, labor a

nd capital, and that resource prices remain constant. This firm finds that the marginal revenue product of labor (MRP) when divided by the price for labor (MRC) is less than one. The firm also finds that the marginal revenue product for capital (MRP) when divided by the price (MRC) is greater than one. If this firm wishes to produce the same amount of output with these two resources, but minimize the cost of output, this firm must employ:________
a. less labor and more capital
b. more capital
c. more labor and capital
d. less labor
e. more labor and less capital
Business
1 answer:
Sunny_sXe [5.5K]2 years ago
7 0

Answer: a. less labor and more capital

Explanation:

When the Marginal Revenue Product of Labor (MRP) is divided by the price for labor (MRC), the result is less than 1. This means that for every dollar spent on labor, labor produces less than a dollar. The labor is therefore not efficient.

This is the reverse for capital where the marginal revenue product for capital (MRP) when divided by the price (MRC) is greater than one which means that for every dollar investment in capital, more than a dollar is made.

As capital is more efficient, it would make sense to invest more in capital whilst reducing the investment in labor as this would lead to more gain for the company.

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The Tuck Shop began the current month with inventory costing $19,000, then purchased inventory at a cost of $52,950. The perpetu
DaniilM [7]

Answer:

Inventory shrinkage = $1,322

Explanation:

We know,

Inventory shrinkage = Ending inventory - Actual inventory at hand

Given,

Actual inventory at hand = $13,500

Ending inventory = Beginning inventory + Purchase - Inventory sold(Costing price)

Or, Ending inventory = $19,000 + $52,950 - $57,128

Or, Ending inventory = $71,950 - $57,128

Or, Ending inventory = $14,822

Therefore,

Inventory shrinkage = Ending inventory - Actual inventory at hand

Or, Inventory shrinkage = $14,822 - $13,500

Or, Inventory shrinkage = $1,322

5 0
3 years ago
When was the Fair Labor Standards Act (FLSA) established?​
Snezhnost [94]

Answer:

The Fair Labor Standards Act was established in 1938.

6 0
3 years ago
Demand and cost information for a monopoly
sattari [20]

Question:

Please see the Demand and Cost information reproduced in the attached table

Answer:

The correct choice is A)

Profit if maximized where price is equal to $20.

At this price, MR = MC.

Please see the attached PDF.

Explanation:

The profit-maximizing choice for the monopoly will be to produce at the quantity where marginal revenue is equal to marginal cost:

That is, the point where MR = MC.

If the monopoly produces a lower quantity, then MR > MC at those levels of output, and the firm can make higher profits by expanding output.

Cheers!  

8 0
3 years ago
1. You’ve been hired by Nielsen Company to study the market for potatoes. Demand in the potato market is characterized by the de
icang [17]

Answer:

P = MR = 1

Explanation:

The demand function is q = 25 - 12p.

The  total income is the price of potatoes multiplied by the quantities of potato --> P * Q

p*q = p*(25-12p)

p*q = 25p - 12p^2

the first derivative of the previous equation is the marginal revenue. In perfect competition the Price = Marginal revenue.

First derivative of total income ---> 25-24p

And MR = P

25-24p=p

25=25p

<h2>p=1</h2>

8 0
2 years ago
Your company rents computers to local businesses and schools. You have 4,000 computers with a book value of $185,000. As a resul
andriy [413]

Answer:

47,000

Explanation:

Impairment Loss = Book Value − Fair Value

$180,500 − $133,500 = $47,000

6 0
3 years ago
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