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bonufazy [111]
3 years ago
5

The production function for laser eye surgery is given by Q = 20K0.5L0.5, where Q is the number of laser eye surgeries performed

per day, K is the number of eye surgery machines (which is fixed at 2 in the short run), and L is the number of employees. The marginal product of labor for L = 3 is ____.
Business
1 answer:
Naddika [18.5K]3 years ago
7 0

The marginal product of labor is 10.

Data and Calculations:

Production function = Q = 20K0.5L0.5 = 20 x K x 0.5 x L x 0.5

Where:

Q = number of surgeries per day

K = number of machines

L = number of employees

Assuming that:

K = 2

L = 2

Therefore, Q1 = 20 x 2 x 0.5 x 2 x 0.5

= 20 surgeries per day

Q2 = 20 x 2 x 0.5 x 3 x 0.5

= 30 surgeries per day

Change in productivity = 10 (30 - 20)

Change in labor = 1 (3 - 2)

Marginal product of labor = change in output / change in labor

= 10 (10/1)

Thus, the marginal product of labor for the production function is 10.

Learn more: brainly.com/question/4186143

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To compete in today's market, how often should firms focus on marketing planning so that managers and executives have the core i
OleMash [197]

Answer: at all times

Explanation: To compete and stand out in today's market, there is need for proper marketing planning and this should be done AT ALL TIMES. This is because the more you plan, the more you discover new strategies of making your market stand out, the more your goals are attainable.

6 0
3 years ago
Little Book LTD has total assets of $860 000. There are 75
malfutka [58]

a)Little book LTD earning per share is $1.118 per share.  

Explanation:

To calculate earning per share we will use following formula:

\frac{net income}{weighted average  shares outstanding}

Now to find net income we will take help of  asset turnover ratio :\frac{net sales}{total asset}

Asset turnover ratio = \frac{x}{860000}

\begin{align}\frac{x}{$86000}\end{align}1.5 × $860000 = x

x (net sales) = $1290000

Outstanding shares = 75000 shares

So Net Income  = $1290000×.065

                          = $83850

Now Earning per share = \frac{83850}{75000}

    Earning per share = $1.118

b)  Market to Book Ratio will be 1.2 for Little Book LTD.

Explanation:

Market to Book Ratio =\frac{Market Capitalization}{Total Book Value}

Market Capitalization = $ 75000× $ 12

                                    = $900000

So, Market To Book Ratio =\frac{900000}{750000}

       Market To Book Ratio = 1.2            

5 0
3 years ago
In a small​ town, a steel mill produces air pollution. if the government does not​ intervene, the equilibrium price of steel wil
JulijaS [17]

Answer: a. less than the socially optimal​ price, greater than the socially optimal quantity

Explanation:

The steel mill is producing steel and selling at a rate that does not account for the pollution that it is causing. Because of this, it is selling at a lower equilibrium price than what it would had the Pollution been accounted for.

The Steel Mill is also selling quantity that is greater than what would be considered socially optimal because the socially optimal level would account for the pollution and adjust in such a way that the Pollution is minimized

3 0
2 years ago
Alamo Inc. had $240 million in taxable income for the current year. Alamo also had a decrease in deferred tax assets of $26 mill
Sloan [31]

Answer:

The total income tax expense  was $138,000,000

<u />

Explanation:

<u>Total income tax expense</u>

Decrease in deferred tax assets        $26,000,000

+Increase in deferred tax liabilities    $52,000,000

+Income tax payable                           <u>$60,000,000</u>

Total income tax expense                  <u>$138,000,000</u>

<u></u>

Workings

Income tax payable = 25% * $240,000,000

Income tax payable = $60,000,000

8 0
3 years ago
Langley Clinics, Inc buys $400,000 in medical supplies each year (at gross prices) from its major suppliers, consolidated servic
SOVA2 [1]

Answer:

a) Langley buys $400,000 (gross) in medical supplies a year from Consolidated. The net purchases (the true cost of the supplies) is only 0.975 x $400,000 = $390,000 because they can be bought at a 2.5 percent discount when payment is made within 10 days. On a daily basis, Langley purchases $390,000 / 360 = $1,083.33. If Langley takes the free credit and pays on Day 10, its payables from Consolidated would total 10 x $1,083.33 = $10,833.33, which is the amount of free credit.

b. If Langley pays after 45 days, its accounts payable will increase to 45 x $1,083.33 = $48,750. Thus, the amount of costly trade credit is Total trade credit – Free trade credit = $48,750 – $10,833.33 = $37,916.67.

c. Langley is foregoing a 2.5 percent discount on its $400,000 of purchases, so the dollar cost of the additional (costly) trade credit is 0.025 x $400,000 = $10,000. Dividing this dollar cost by the amount of additional credit provides the approximate percentage cost of the costly trade credit:

$10,000

Approximate percentage cost = ──────── = 0.264 = 26.4%.

$37,916.67

Of course, the approximate cost could have been found by applying the following formula:

Discount percent 360

Approximate % cost = ────────────── = ────────────────────────

100 - Discount percent Days credit received - Discount period

2.5 360

= ─── = ─── = 0.264 = 26.4%.

97.5 35

d. If Langley can obtain a bank loan for less than 26.4 percent cost, including interest cost and fees, it should replace the costly credit ($37,916.67) with a bank loan.

e. As indicated in Part d, only the costly trade credit should be replaced. Langley should always take the $10,033.33 of free trade credit.

7 0
3 years ago
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