PLEASE EXPLAIN THE WORKING AND PROCESS
1. A firm calculates that the marginal product of labor (MPL) can be found from the following equation:
MPL = 35 - 2L
where L is the number of workers hired.
The production function for this firm is as follows:
Q = 35L - L2
The firm knows it can find profits with the following equation:
Profit = P ´ Q - W ´ L
where P stands for the selling price of the good, Q stands for total output, and W represents the wage. Price is equal to $1.
a. If the wage is $11, how many workers will the firm hire? How much profit will it earn?
b. Compare this level of profits to those earned by the firm if it hired one fewer worker than L* and one worker more than L* to demonstrate that L* workers generate the most profit for the firm.
Answers
Answer:
a. Therefore, the number workers the firm will hire is 12; and the amount of profit it will earn is $144.
b. Since the profit from when one fewer or more worker than L* workers is hired is equal to $143 which is lower than $144 profit from hiring L* workers, this implies that L* workers generate the most profit for the firm.
Explanation:
Note: There are some errors and omission in this question. These are therefore corrected by restating the complete question as follows:
A firm calculates that the marginal product of labor (MPL) can be found from the following equation:
MPL = 35 - 2L
where L is the number of workers hired.
The production function for this firm is as follows:
Q = 35L - L^2
The firm knows it can find profits with the following equation:
Profit = P * Q - W * L
where P stands for the selling price of the good, Q stands for total output, and W represents the wage. Price is equal to $1.
a. If the wage is $11, how many workers will the firm hire? How much profit will it earn?
b. Compare this level of profits to those earned by the firm if it hired one fewer worker than L* and one worker more than L* to demonstrate that L* workers generate the most profit for the firm.
The explanation of the answer is now given as follows:
a. If the wage is $11, how many workers will the firm hire? How much profit will it earn?
Given;
Profit = P * Q - W * L ………………………… (1)
Where;
P = 1
Q = 35L - L^2
W = 11
L = ?
Substitute the values above into equation (1), we have:
Profit = (1 * (35L - L^2)) - (11 * L)
Profit = 35L - L^2 - 11L …………………………. (2)
Taking the derivative of equation (2) with respect to L and equating to 0, we can then solve for L as follows:
35 - 2L - 11 = 0
2L = 24
L = 24 / 2
L = L* = 12
Substituting L = 12 into equation (2), we have:
Profit = (35 * 12) - 12^2 - (11 * 12)
Profit = 144
Therefore, the number workers the firm will hire is 12; and the amount of profit it will earn is $144.
b. Compare this level of profits to those earned by the firm if it hired one fewer worker than L* and one worker more than L* to demonstrate that L* workers generate the most profit for the firm.
If it hired one fewer worker than L*
This implies that L = 12 – 1 = 11
Using equation (2) from part a above and substitute L = 11, we have:
Profit = 35L - L^2 - 11L
Profit = (35 * 11) - 11^2 - (11 * 11)
Profit = 143
If it hired one more worker than L*
This implies that L = 12 + 1 = 13
Using equation (2) from part a above and substitute L = 13, we have:
Profit = 35L - L^2 - 11L
Profit = (35 * 13) - 13^2 - (11 * 13)
Profit = 143
Therefore, the profit from when one fewer or more worker than L* workers is hired is equal to $143.
Since the profit from when one fewer or more worker than L* workers is hired is equal to $143 which is lower than $144 profit from hiring L* workers, this implies that L* workers generate the most profit for the firm.
Related Questions
Should a 16 year be able to contract? Why?
Answers
Slotkin Products purchased a machine for $65000 on July 1, 2020. The company intends to depreciate it over 8 years using the double-declining balance method. Salvage value is $5000. Depreciation for 2020 to the closest dollar is:___________. a. $32500
b. $8125
c. $14219
d. $16250
Answers
Answer:Depreciation for 2020 to the closest dollar is:_b. $8125
Explanation:
Straight-line depreciation rate is given as = 1 / Useful life
1 / 8 = 0.1250 or 12.50%
Also the Double-declining-balance depreciation rate = 2 x Straight-line depreciation rate = 2 x 12.50%
Double-declining-balance depreciation rate = 25%
Given That the
Cost of Machine = $65,000
Depreciation for 2020 = Cost of machine x depreciation rate x period ( July - December
$65,000 x 25 % x 6/12
= $8,125
A job analysis approach that utilizes an inventory of various types of work activities that can constitute any job is _________
Answers
Answer:
functional job analysis.
Explanation:
Functional job analysis can be regarded as the analysis used in the knowing information as far as a job is concerned , this could based on employee's behavior which could be used to give the decription of the job.It should be noted that job analysis approach that utilizes an inventory of various types of work activities that can constitute any job is functional job analysis.
Assuming no safety stock, what is the reorder point (R) given an average daily demand of 50 units, a lead time of 10 days, and 625 units on hand?
a. 550
b. 500
c. 715
d. 450
e. 475
Answers
Answer:
b. 500
Explanation:
Calculation for the what is the reorder point
Using this formula
Reorder point = d*L
where,
d represent average daily demand = 50
L represent Lead Time = 10 days
Let plug in the formula
Reorder Point = 50*10 = 500
Therefore Reorder Point will be 500
What is the term used to describe the dollar amount of a physical damage claim paid by the policyholder?A. Coinsurance clause.
B. Floater.
C. Deductible.
Answers
Answer:
C. Deductible.
Explanation:
Variable universal life insurance is insurance that provides permanent insurance coverage as whole life does; however the policyholder, not the insurance company, takes on the investment risk.
A Variable universal life insurance is a type of permanent life insurance policy which avails the holder the opportunity of investing the cash component of the plan (policy) for a much greater returns and as such the investment risk associated with the policy lies completely on the policy holder and not the insurance company.
Additionally, a group life insurance policy can be defined as a single contract plan that covers a group of people by providing life insurance coverage. An employer may opt for a group life insurance policy which would cover the lives of his or her employees.
Deductible is the term used to describe the dollar amount of a physical damage claim paid by the policyholder.
Mortgage loans that allow the borrower to switch among a variety of payment arrangements throughout the life of the loan are more commonly referred to as:________
a. option ARM loans.
b. hybrid ARM loans.
c. subprime loans.
d. alt-A loans.
Answers
Answer:
a. option ARM loans.
Explanation:
Mortgage loans that allow the borrower to switch among a variety of payment arrangements throughout the life of the loan are more commonly referred to as option ARM loans. This type of loans are adjustable and as such the borrower can make lower payments.
Bed Bug Inn has annual sales of $137,000. Earnings before interest and taxes are equal to 5.8 percent of sales. For the period, the firm paid $4,700 in interest. What is the profit margin if the tax rate is 34%?a. â2.43%.b. 1.56%.c. 3.33%.d. â5.29%.e. â6.11%.
Answers
Answer:
Net Profit margin = 0.015637 or 1.5637% rounded off to 1.56%
Option b is the correct answer
Explanation:
The profit margin which is also known as the Net Profit margin the amount of net profit after tax expressed as a percentage of the sales revenue. To calculate the net profit margin, we must first calculate the net profit after tax. Net Profit after tax can be calculated as follows,
We know that sales revenue is $137000 and Earnings before Interest and taxes (EBIT) are 5.8% of sales revenue, then the EBIT is:
EBIT = 137000 * 0.058 = $7946
If we deduct the interest expense from EBIT, we will get Net Profit before tax.
Net profit before tax = 7946 - 4700 = $3246
The tax expense is = 3246 * 0.34 = $1103.64
So, Net Profit after tax = 3246 - 1103.64 = $2142.36
Net profit margin = 2142.36 / 137000
Net Profit margin = 0.015637 or 1.5637% rounded off to 1.56%
Please help I have no clue how to do accounting
Answers
Answer:
the picture not working
Explanation:
Petrus Framing's cost formula for its supplies cost is $1,840 per month plus $12 per frame. For the month of March, the company planned for activity of 624 frames, but the actual level of activity was 631 frames. The actual supplies cost for the month was $9,650. The activity variance for supplies cost in March would be closest to:________
Answers
Answer:
$84 unfavorable
Explanation:
The computation of the activity variance for supplies cost is shown below:
Supplies cost for the standard one is
= $1,840 + (624 frames × $12 per frame)
= $9,328
And, the supplies cost for the actual one is
= $1,840 + (631 frames × $12)
= $9,412
So the activity variance is
= $9,328 - $9,412
= $84 unfavorable
As the standard cost is less than the actual one
You want to buy your dream car which will cost you $5900. If you could invest your entire savings of $3500 at an annual interest of12%, how long (in years rounded to two decimal places) would you have to wait until you have accumulated enough money to buy the car?
Answers
Answer:
t = 4.607742347 years rounded off to 4.61 years
Explanation:
To calculate the number of years it will take an investment of $3500 to grow to $5900 at an annual interest rate of 12%, we will use the formula for the future value of cash flows. The formula can be written as follows,
Future value = Present value * (1+i)^t
Where,
i is the interest ratet is the time in yearsPlugging in the values for future value, present value and i, we can calculate the t to be,
5900 = 3500 * (1+0.12)^t
5900 / 3500 = (1.12)^t
1.685714286 = 1.12^t
Taking log on both sides.
Ln(1.685714286) / Ln(1.12) = t
t = 4.607742347 years rounded off to 4.61 years
Employees at Smith's Club, a discount grocery chain, know that they have to stay on their toes at all times. Mr. Smith, the company founder, has been known to put on disguises and make unannounced visits to stores to make sure the staff is treating customers politely. This is an example of:________
a. a variable ratio schedule.
b. continuous reinforcement.
c. a variable interval schedule.
d. a fixed interval schedule.
e. a fixed ratio schedule.
Answers
Answer:
c. a variable interval schedule.
Explanation:
A variable interval schedule is the schedule in which the particular time amount would be passed i.e. non-predictable and this time amount would be changed or varies
Here in the given situation since it is mentioned that there is unannounced visits in order to check whether the staff is treating their customers in a polite way or not
Therefore the correct option is c.
3.
Jobs Boost as Lidl Unveils Plans for £20m Warehouse Expansion
The German supermarket giant Lidl has plans to expand its distribution centre in County Antrim and open additional stores across Northern Ireland. The company is already recruiting new employees to facilitate its growth and expansion plan. Throughout the build, it could be employing more than 100 construction workers as well.
Source: Belfast Telegraph, June 12, 2015
a. Which of Lidl’s decisions described in the news clip is a short-run decision and which is a long-run
decision?
b. Why is Lidl’s long-run decision riskier than its short-run decision?
Answers
Answer:
Lidi
a. Lidi's decisions:
1. short-term decision: The company is already recruiting new employees to facilitate its growth and expansion plan.
2. long-term decision: The German supermarket giant Lidl has plans to expand its distribution centre in County Antrim and open additional stores across Northern Ireland.
Throughout the build, it could be employing more than 100 construction workers as well.
b. Lidi's long-run decision is riskier than its short-run decision because increased uncertainty is involved in the long-run decision than in the short-run decision.
Explanation:
Short-run decisions are the decisions by Lidi that are current, usually within a year's horizon or covering a short period of about 12 calendar months. The long-run decisions are projections for the future, which are always shrouded with uncertainties because it difficult to predict with precision what happens in the long-run.
A project is expected to generate annual revenues of $117,700, with variable costs of $74,800, and fixed costs of $15,300. The annual depreciation is $3,850 and the tax rate is 35 percent. What is the annual operating cash flow?
a) $31,450
b) $27,600
c) $44,248
d) $59,548
e) $19,288
Answers
Low return investments are sometimes a better option than high return investments because :
Answer:
D.) They are less likely to cause the investor to lose money.
Explanation:
Its on ApX
Answers
Answer:
Low return investments are sometimes a better option than high return investments because :
Answer:
D.) They are less likely to cause the investor to lose money.
Explanation:
The above assertion depends on the risk appetite of the investor concerned. Another investor with high risk profile may prefer a high risk, high return investment to a low return investment. Risk cannot be removed from the return of an investment because there is a trade-off. The higher the risk involved in an investment, the higher the expected returns. The converse is also true. What decides the chosen option is the investor's risk appetite and the availability and type of investments.
Answer: They are less likely to cause the investor to lose money.
Explanation:
The zero coupon bonds of Mark Enterprises have a market price of $394.47, a face value of $1,000, and a yield to maturity of 6.87 percent based on semiannual compounding. How many years is it until this bond matures? a. 10.49 years b. 13.77 years c. 12.64 years d. 11.08 years e. 15.42 years
Answers
Answer:
13.77 years
Explanation:
The maturity period is the period taken for the Bonds' Market Price equals its Face Value.
Calculation of the maturity period :
PV = - $394.47
PMT = $0
YTM = 6.87 %
P/YR = 2
FV = $1,000
N = ?
Using a financial calculator to input the values as above, the number of periods interest is accrued on the bond (N) is 27.54 thus the number of years will be 13.77 (27.54 ÷ 12) .
The risk of employee opportunism, on behalf of agents, is exacerbated by the concept of:________
a. competitive advantage.
b. stakeholder analysis.
c. information asymmetry.
d. corporate governance.
Answers
Answer:
c. information asymmetry.
Explanation:
Information asymmetry also called Information failure, is a state of affairs wherever there is an imperfect information, this happens wherever one party has completely different information than the other party. It is also when the party possess greater economic transaction about than the other party. An example is concerning an automotive manufacturer and buyer, the owner is probably going to own full information regarding its service history and its chance to break-down than the buyer.
You have just landed in London with $ 790 in your wallet. Stopping at the foreign exchange? booth, you see that pounds are being quoted at $1.97/£. For how many pounds can you exchange your $790??
Answers
Answer:
£401.02
Explanation:
Exchange rate is defined as the rate at which one currency is exchanged for another.
In international trade exchange rate is used to determine how much a country will pay or recieve in export or import transactions.
In the given instance where the exchange rate is $1.97/£ it means that $1.97 is required to get £1.
So when we want to calculate the amount of pounds $790 can get
$1.97 = £1
$790 = x
Cross multiply
1.97 x = 790 * 1
x = 790 ÷ 1.97
x = £401.02
answers to the nearest whole dolar
Scenario #1: Raul
Raul is a saver. He sets aside $100 per month during his career of 40 years to prepare for retirement. He does not like
the idea of investing because he prefers to minimize his risk as much as possible, so he puts his money in a savings
account which earns 1.596 interest per year
1. What is the total balance in 2. How much of the total did
3. How much money did Raul
the account after 40 years?
Raul contribute himself?
make through compound
interest in this savings
account?
N
4. Identify one way Raul could have increased the total amount of money he made over the 40 years. Explain
your reasoning.
Answers
100 * 12 = 1200
1200 + 1.596 = 1201.596
1201.596 * 40 = $48,063. 84
If the company follows a strict residual dividend policy and makes distributions in the form of dividends, what is its expected dividend payout ratio for this year?
Answers
Answer: 89%
Explanation:
Calculate the dividend pay-out ratio.
Company has a capital structure of 30% which means that 30% of the capital budget of $88 million has to come from retained earnings;
= 30% * 88
= $26.4 million will come from retained earnings
The amount left for dividends will therefore be;
= 240 - 26.4
= $213.6 million
Dividend Payout ratio;
= Dividend / Net income
= 213.6/240
= 89%
The replacement cost of an inventory item is below the net realizable value and above the net realizable value less the normal profit margin. The original cost of the inventory item is below the net realizable value less the normal profit margin.Under the lower of cost or market method, the inventory item should be valued at:___________
A. Net realizable value.
B. Net realizable value less the normal profit margin.
C. Original cost.
D. Replacement cost.
Answers
Answer:
D. Replacement cost.
Explanation:
As we know that the inventory should be recorded at the cost or market value whichever is lower
Given that
Original cost is less than the net realizable value subtract the profit margin
So we assume the following figures
Original cost $10
Net realizable value 9
Replacement cost 8
NRV less normal profit margin 7
As if we compare the original cost and replacement cost so the lower value is of replacement cost
hence, the same is to be considered
Therefore the correct option is D.
Which of the following is an example of a positive-sum game?A. Working with someone to build a house. B. A war between two countries. C. Racing against someone to get in line at the grocery store before them. D. Buying an apple at a store.
Answers
Answer:
working with someone to build a house
Explanation:
Out of all of the options listed the one that is an example of a positive-sum game is working with someone to build a house. This is because you are collaborating with another individual equally and all decisions and actions affect both of you equally. Therefore, if you win/profit you would both be winning/profiting at the same time, the same goes for losses. In such a game you one would not profit without the others profiting as well.
Bonita Industries purchased equipment for $46400. Sales tax on the purchase was $2784. Other costs incurred were freight charges of $696, repairs of $406 for damage during installation, and installation costs of $774. What is the cost of the equipment?a. $12,000.00.
b. $13,530.00.
c. $12,600.00.
d. $13,110.00.
Answers
Cost Of the Equipment = $ 51,060
Explanation:
Equipment = $46400.
Add
Sale tax= $ 2784
Freight charges $696
Repairs $406
Installation costs $774
Cost Of the Equipment = $ 51,060
The cost of equipment includes all charges that makes it ready for use. These maybe the installation charges the sales tax paid, freight charges any repairs on damage during installation.
All costs incurred to make the equipment operational are included in the cost of the machinery.
How,in practice,is cost-benefit analysis of public goods,such as city-funded fireworks displays,usually carried out?
A) through surveys of people attending fireworks displays
B) through surveys of people who live near fireworks displays
C) through public elections of local officials
D) through debates at community forums
E) through the passage of municipal regulations
Answers
Answer:
C) through public elections of local officials
Explanation:
The Cost–benefit analysis is also sometimes known as the benefit–cost analysis. It is the systematic approach in estimating the weaknesses and the strengths of the alternatives that is used to determine the options which provides the best method or approach to achieve the benefits while preserving a savings.
It is used to maximize the social welfare. It is for the optimal quantity of any public good. The cost benefit analysis of the public goods like the firework displays should be carried out by a public election of the local officials.
Apr. 15. Received $800 from Jean Tooley and wrote off the remainder owed of $1,200 as uncollectible. Aug. 7. Reinstated the account of Jean Tooley and received $1,200 cash in full payment.
Required: Journalize the above transactions, using the direct write-off method of accounting for uncollectible receivables. Refer to the Chart of Accounts for exact wording of account titles.
Answers
Answer:
Date Account Titles and Explanation Debit Credit
15 Apr Cash $800
Bad debt expenses $1,200
To accounts receivables $2,000
(To writeoff bad debts)
07 Aug Accounts receivables $1,200
To bad debt expenses $1,200
(For reinstatement of earlier written off)
07 Aug Cash $1,200
To account receivables $1,200
(For receipt of cash from customers)
Blossom Corp. will pay dividends of $5.00, $6.25, $4.75, and $3.00 in the next four years. Thereafter, management expects the dividend growth rate to be constant at 7 percent. If the required rate of return is 15.50 percent, what is the current value of the stock?
Answers
Answer:
Present value = $35.00326585 rounded off to $35.00
Explanation:
Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the stock, we will use the following formula,
Present value = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n +
[(Dn * (1+g) / (r - g)) / (1+r)^n]
Where,
r is the required rate of return g is the constant growth rate in dividends n is the number of years
Present value = 5 / (1+0.155) + 6.25 / (1+0.155)^2 + 4.75 / (1+0.155)^3 +
3 / (1+0.155)^4 + [(3 * (1+0.07) / (0.155 - 0.07)) / (1+0.155)^4]
Present value = $35.00326585 rounded off to $35.00
General Electric manufactures turbines and provides the following annual data. How many turbines were transferred to finished goods during the year?
Beginning Work in Process (30% complete, $1,300) 220 units
Ending inventory of work in Process (70% complete) 420 units
Total units started during the year 3,400 units
a. 3,392 uns.
b. 3,400 units.
c. 3.200 uniks.
d. 3,848 units.
Which is associated with process cost accounting but is not normally associated with job cost accounting?
A. Determining cost of goods sold.
B. Identifiable units of production.
C. Use of Job Cost Sheet.
D. Equivalent units of production.
Answers
Answer:
a. 3,200 units
D. Equivalent units of production.
Explanation:
The computation of the number of units transferred to finished goods is as follows:
= Opening work in progress+ Total units started during the year - Closing work in progress
= 220 units + 3,400 units - 420 units
= 3,200 units
The equivalent unit of production deals with the process costing but not with the job costing
In the case of process costing, the work in process should be considered
While on the other hand, the job costing, the production does not held on a continuous basis
sales journal.
7. Which of the following is recorded in the sales journal?
O return of merchandise purchased for cash
O sale of merchandise for cash
O sale of merchandise on account
O return of merchandise purchased on account
Answers
Firms colluding: a. Earn short run normal profits. B. Increase competition by firms through advances in technology. C. Earn short run economic losses. D. Earn short run economic profits
Answers
Answer:
D. Earn short run economic profits
Explanation:
A cartel can be defined as a formal agreement reached (collusion) in an oligopolistic industry between two or more business firms that are saddled with the responsibility of producing goods and services in order to make price and output decisions such as price regulation, total level of output or supply, allocation of customers, market shares, territory allocation, division of profits, collusive bidding etc.
This ultimately implies that, when a group of independent firms in an oligopolistic industry collude by reaching a formal agreement to regulate supply, as well as manipulate or regulate prices, they do so to increase their profits and market dominance.
Hence, firms colluding earn short run economic profits.
hiii can someone pretty pls help me with this :D
Select an industry of your choice. Use online sources to find the most recent data available on the following aspects related to the industry that you select:
-economic indicators
-employment statistics
-top three competitors in the industry, by sales volume
Answers
Employment statistics.
You would need these if you are going to work in a business. After all, an business needs workers!
Calculate the value of x (the implied forward rate on one-year maturity Treasuries to be delivered in one year). A. 6.53 percent. B. 10.83 percent. C. 5.75 percent. D. 6.925 percent. E. 1.017 percent.
Answers
Answer:
The value of X is A. 6.53 percent.
The value of Y is B. 10.83 percent
Explanation:
Note: See the full question as attached as picture below
Spot 1 Year Spot 2 Year Forward 1 Year (1-year maturity)
Treasury 3.0% 4..75% x
BBB Corporate Debt 7.5% 9.15% y
The formula to calculate the forward rate is: F1.1 = [(1+S2)² / (1+S1)] - 1
For treasury
F1.1 = [(1+4.75%)² / (1+3.0%)] - 1
F1.1 = 1.09725625 / 1.03 - 1
F1.1 = 6.53%
For BBB Corporate Debt
F1.1 = [(1+9.15%)² / (1+7.5%)] - 1
F1.1 = 1.19137225 / 1.075 - 1
F1.1 = 10.83%