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3 years ago

Assume that skilled labor costs twice as much as unskilled labor, a profit-maximizing firm will

1 answer:

N76 [4]3 years ago

4 0

Assume that skilled labor costs twice as much as unskilled labor, a profit maximizing firm will hire until the marginal product of unskilled labor is half that of skilled labor.

A profit maximizing firm is a firm that tries to create products that are of good quality at the barest or smallest cost.

The marginal product falls after an additional amount of the resource has been added. It is the extra amount that is gained due to the addition of an extra unit.

Due to the fact that both the skilled and unskilled would decrease eventually, the company would have to hire both at equal marginal products.

Read more on brainly.com/question/25706143

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A corporation makes an investment of $20,000 that will provide the following cash flows after the corresponding amounts of time:

s344n2d4d5 [400]

A) The company should not invest in the provided project due to the negative NPV of the project.

B) The NPV of the project comes out to be (286).

NPV is an abbreviated form of Net present value and computed by deducting the cash outflows from cash inflows at the present value.

Given values:

Cash flow of year 1: $10,000

Cash flow of year 2: $10,000

Cash flow of year 3: $2,000

Cash outflow (cost of investment) =$20,000

Step-1 Computation of PV of cash inflows of every year:

PV of year 1 = Cash inflow of year 1 / (1+ interest rate)^ 1

= $10,000 / (1+0.07) ^ 1

= $10,000 X 0.934579

= $9,346

PV of year 2 = Cash inflow of year 1 / (1+ interest rate)^ 2

= $10,000 / (1+0.07) ^ 2

= $10,000 X 0.873438

= $8,735

PV of year 3= Cash inflow of year 1 / (1+ interest rate)^ 3

= $2,000 / (1+0.07) ^ 2

= $2,000 X 0.816297

=$1,633

Step-2 Computation of total amount of PV of cash inflows:

$\rm\ PV \rm\ of \rm\ cash \rm\ inflows = \rm\ PV \rm\ of \rm\ year \rm\ 1 + \rm\ PV \rm\ of \rm\ year \rm\ 2 + \rm\ PV \rm\ of \rm\ year \rm\ 3\\\rm\ PV \rm\ of \rm\ cash \rm\ inflows =\$9,346 + \$8,735 + \$1,633\\\rm\ PV \rm\ of \rm\ cash \rm\ inflows =\$19,714$

Step-3 Computation of NPV:

$\rm\ NPV=\rm\ PV \rm\ of \rm\ cash \rm\ inflows- \rm\ Cost \rm\ of \rm\ investment\\\rm\ NPV=\$19,714-\$20,000\\\rm\ NPV=\$ (286)$

Therefore, the NPV comes out to be a negative amount of 286, and hence, the company should not accept the project.

Learn more about the net present value in the related link:

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5 0

2 years ago

Thornbrough Corporation produces and sells a single product with the following characteristics: Per Unit Percent of Sales Sellin

DaniilM [7]

Answer:

-$5,500

Explanation:

The computation of the overall effect on the company net operating income is as follows:

New Variable cost per unit is

= $44 + $11

= $55

Now the new contribution margin per unit is

= $220 - $55

= $165

New unit Monthly sales is

= 7,000 units + 500 units

= 7,500

Now

New total contribution margin :

= 7,500 units × $165

= $1,237,500

And, the Current total contribution margin is

= 7,000 units × $176

= $1,232,000

So, the change would be

= $1,232,000 - $1,237,500

= -$5,500

6 0

3 years ago

Bp's expansion plans were reduced, and its ability to compete with other large multinational oil companies like____ became limit

forsale [732]

Bp's expansion plans had been reduced, and its capacity to compete with other large multinational oil companies like Exxon Mobil and ShellExplanation has become restricted.

BP's new cause is reimagining energy for people and our planet. The cause is underpinned by way of an industry-leading ambition – for BP to become a net zero organization by 2050 or faster, and to help the world get to net zero – and this ambition is supported by using 10 goals.

The strong development bp has made over the last few years has reinforced its confidence in the shipping of its earnings and returns goals for 2025. further, it's far now aiming to keep growing EBITDA through to 2030.

It's critical to show BP's graduate recruiters that you percentage BP's five middle values: safety, respect, excellence, one crew, and braveness.

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2 years ago

Marietta works in a production department alongside six other workers who do the same type of work. Each works independently but

marissa [1.9K]

Marietta is a part of A WORK GROUP.
The correct option is B.
A work group is made up of members, who can represent one unit or department and these members work independently but at the end of the day they pool their outputs together. The characteristic feature of work groups include the following: individual accountability, focus is on individual goals, production of individual work product, defined individual roles, tasks and responsibilities, etc.

4 0

3 years ago

Estimate the value of a share of Intel common stock using the residual operating income (ROPI) model as of December 25, 2010; as

wariber [46]

Answer:

Using

F=P(1+i)^n equation

we will have

n=5 years

i=11%=0.11

P=5511 million

F=23424 million

7 0

3 years ago