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olya-2409 [2.1K]
3 years ago
12

Answer the question using the following data, which show all available techniques for producing 20 units of a particular commodi

ty Resource Resource prices Possible production Techniques #1 #2 #3 #4 #5 Land $4 2 4 2 4 4 Labor 3 1 2 4 1 3 Capital 3 5 2 3 1 2 Entrepreneurial Ability 2 3 1 1 4 1 If a new production technique is developed that enables a firm to produce 20 units of output with 3 units of land, 3 of labor, 1 of capital, and 2 of entrepreneurial ability, this technique would
Business
1 answer:
Nana76 [90]3 years ago
5 0

Answer:

This technique would be adopted because it would lower production costs and increase economic profit.

Explanation:

Consider the given problem here there are “4 factors” of production these are “Land”, “labor”, “capital” and “entrepreneurial ability”. Now, price of each input is given in the question.

given the price and the cost adopting “technique 1” is given by.

=> C1 = 4*2 + 3*1 + 3*5 + 2*3

         = 32

Similarly, given the price and the cost adopting “technique 2” is given by.

=> C2 = 4*4 + 3*2 + 3*2 + 2*1

          = 30  

Similarly, given the price and the cost adopting “technique 3” is given by.

=> C3 = 4*2 + 3*4 + 3*3 + 2*1

          = 31  

Now, given the price and the cost adopting “technique 4” is given by.

=> C4 = 4*4 + 3*1 + 3*1 + 2*4

          = 30

Finally, given the price and the cost adopting “technique 5” is given by.

=> C5 = 4*4 + 3*3 + 3*2 + 2*1

         = 33  

here the most efficient technique is “2 and 4” having least cost.

Now, for new technology the cost of using it is given by.

=> 4*3 + 3*3 + 3*1 + 2*2 = 28 < 30

Therefore, This technique would be adopted because it would lower production costs and increase economic profit.

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Answer:

You would pay approximately $35.00 today

Explanation:

The cost of the stock at the beginning of the year 20

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From this calculation you have to pay 35 Dollars today.

5 0
2 years ago
Mendrisio Company purchased a piece of machinery for $30,000 on January 1, 2019, and has been depreciating the machine using the
aleksley [76]

Answer:

a. There is no entry required to record the accounting change

b. The journal entry to record depreciation for 2021 would be as follows:

                                   

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Depreciation Expense $3,000

    Accumulated Depreciation $3,000

Explanation:

According to the given data we have the following:

Sum of year digits=5(5+1)/2

Sum of year digits=(5*6)/2

Sum of year digits=15

Depreciation for year 2019=$30,000*5/15

Depreciation for year 2019=$10,000

Depreciation for year 2020=$30,000*4/15

Depreciation for year 2020=$8,000

Therefore, book value as on january 1, 2021=$30,000-$10,000-$8,000

book value as on january 1, 2021=$12,000

Revised useful life=6 years-2 years=4 years

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Revised depreciation for 2021=$3,000

a. There is no entry required to record the accounting change

b. The journal entry to record depreciation for 2021 would be as follows:

                                   

                                         Debit      Credit

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3 0
2 years ago
The coefficient of variation, calculated as the standard deviation of expected returns divided by the expected return, is a stan
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Answer:

The correct answer is True.

Explanation:

Whenever a conflict arises within the classification of projects between the expected monetary value and the standard deviation, the coefficient of variation is used to try to solve the problem. For this reason, it is concluded that the coefficient of variation is a standardized measure of risk.

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3 years ago
Joan Demers launched a professional services firm on March 1. The firm will prepare financial statements at each month-end. In M
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Answer:

the net operating income is $19,000

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4 0
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What is suggestive selling? Have you experienced an example of this? If so, describe the experience. Why do restaurants use sugg
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Explanation:

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