nsider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm’s capacity. If he adds one more worker, the firm’s total monthly revenue will increase from $50,000 to $62,000. If he adds one more tractor, monthly revenue will increase from $50,000 to $58,000. Each additional worker costs $4,000 per month, while an additional tractor would also cost $4,000 per month. Instructions: Enter your answers as a whole number. a. What is the marginal revenue product of labor? $ The marginal revenue product of capital? $ b. What is the ratio of the marginal revenue product of labor to the price of labor (MRPL/PL)? : What is the ratio of the marginal revenue product of capital to the price of capital (MRPC/PC)?

Q: manufacturer produces certain items at a labor cost per unit o P 315, material cost per unit IS P…

A:

Q: Rodriguez operates a variety store that provides an annual revenue of $500,000. Each year, he pays…

A: Revenue, also known as a sale, is an increase in equity that results from the sale of a product or…

Q: Mary Graham has worked as a real estate agent for Piedmont Properties for 15 years. Her annual…

A: The given information:

Q: Tanim quits his engineering job, where he was earning a salary of $70,000 per year, to start his own…

A: Answer - Need to find- Sunk cost    Sunk cost = It is the cost that is not recoverable by the owner…

Q: Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per…

A: The opportunity cost refers to the value or cost of the next best alternative among all available…

Q: The following process is used to assemble bicycles. The process is fully automated, and the capacity…

A: Process capacity is commonly represented in "hours" and refers to the output capacity of employees…

Q: Julia and Ralph need to decide which one of them will take time off from work to complete the rather…

A: From the situation given here, we see that Julia and Ralph both have daily jobs to do for which they…

Q: Marginal Product Variable Cost Labor Output Fixed Cost so $5 1. 100 100 $5 $5 2 250 $10 $5 3 350 $15…

A: First, we will calculate Total Cost by adding Fixed Cost+Variable Cost. Then, we can calculate…

Q: Marginal revenue of a product is the incremental revenue of selling an additional unit of that…

A: Following is the given values:  The revenue from selling 20 units = 15000  The revenue from selling…

Q: Andie is considering leaving her job as attorney to pursue her passion by starting a dog grooming…

A: Economic Costs  is always considered to be the sum of accounting cost and opportunity costs.

Q: 13. A company finds that it can sell out a certain product that it produces, at the rate of Tk. 2…

A: Total profit is the difference between the total production cost and the total revenues received by…

Q: A young chef is considering opening his own sushi bar. To do so, he would have to quit his current…

A: Implicit cost is the opportunity cost.

Q: Assume you are pursuing a bachelor’s degree and you have 40 hours to divide between work and school…

A: Opportunity cost is the cost of next best alternative. It is the foregone benefit that could have…

Q: Hau Lee Furniture, Inc., spends 60% of its sales dollars in the supply chain and has a current gross…

A: Here, we calculate the given as follow;

Q: Rodriguez operates a variety store that provides an annual revenue of $550,000. Each year, he pays…

A: Here we calculate the Implicit cost , Explicit cost and Accounting profit , Economic Profit by using…

Q: The division of a large office services company that makes high-end copiers recently signed a…

A: Ans. Usually, a long term natured contract is signed taking into consideration that marginal…

Q: If you know that when Bombardier, a hypothetical firm in Montreal produces 10 units of output, total…

A: Here, given information is: Total output: 10 units Total cost: $1,030 Average fixed cost: $10 To…

Q: company has determined that its prodor for a product can be described by linear function. The profit…

A: Definition of Breakeven - The level of output at which profit levels is zero or the total cost is…

Q: Total Fixed Total Variable Average Fixed Average Output Cost Cost Total Cost Cost Variable Cost…

A: * SOLUTION :-  * The marginal cost of 4th unit of good is = $ 12.5

Q: Average Total Cost ($ per tablet) Number of Factories Q=100 Q=200 Q=300 Q=400 Q=500 Q=600 1 400 300…

A: Given information Q Factory1 Factory 2 Factory 3 100 400 540 720 200 300 350 400 300 200…

Q: b. Five Sales Executives have been told by their company Heavy Machines Limited (HML) that each…

A: Ans

Q: 8. Engineers sometimes rely on the "0.6 rule," which states that the increase in cost is given by…

A: "0.6" Rule states that increase in capacities of equipment  leads to less than one to one increase…

Q: Assume you are selling pizzas at $3 per pizza Your fixed costs (rent, salaries, and utilities) are…

A: At Break Even Point, total revenue is equal to total cost. A firm neither earns profit nor incur…

Q: A friend of yours has been thinking about quitting her regular day job and going into business for…

A: The opportunity cost is the value that could have been derived from the decision forgone. When…

Q: 1-16 Ray Bond sells handcrafted yard decorations at county fairs. The variable cost to make these is…

A: The production level at which the costs are equal to the revenues for a product is known as the…

Q: What happen when you add Total Fix Cost and Total Variable cost that is divided by their quantity.…

A: Production cost is the monetary value that is used to acquire factor of production to produce goods…

Q: Consider two different cost structures for the same firm. The first bas higher variable costs per…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: 50. If all inputs are trebled and the resultant output is doubled, this is а case of A. O Constant…

A: Returns to scale is a long-term concept which tells the response of output when the number of inputs…

Q: Which of the following is true of effective employee evaluation and feedback? O It should be…

A: When we are considering the evaluation of employees then it is very necessary to evaluate the…

Q: David, who works as a financial analyst, has a bachelor's degree in economics and is thinking of…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: Calculate Jessie’s accounting profit and economic profit. In your opinion, should Jessie proceed…

A: Accounting profits = Revenue - Total explicit costs.  Economic profit = Revenue - ( explicit…

Q: A company handles an apartment building with 50 units. Experience has shown that if the rent for…

A: To maximize profit, the company needs to ensure that the marginal revenue of selling one more…

Q: You are thinking about opening a business. If you do, you will have to leave your current job, which…

A:

Q: The total cost (CT) of Holdins-up is CT = 4q2 + 4q + 16CT = 4q2 + 4q + 16. Get the fixed cost (CF)…

A: Total cost function: CT = 4q2 + 4q + 16 Total cost is the sum of variable cost and fixed cost.

Q: 10. When a firm produces 50,000 units of output. its total cost equals OMR 65 million. When it…

A: The marginal cost refers to the amount of an additional cost incurred in the process of increasing…

Q: Marah is deciding whether or not to open a lemonade stand. She expects to sell 20 cups of lemonade…

A: Even though a firm is facing loss in the short run, it can operate when the price of goods is…

Q: A profit-maximizing firm will: O reduce employment if VMPL exceeds MCL. O expand employment if the…

A:

Q: .Which of the following is an example of a fixed cost? A. cost of employees who work overtime B.…

A: In general, a firm incurs various costs in the daily business and these costs can be classified as…

Q: Recently, the owner of a Trader Joe’s franchise decided to change how she compensated her top…

A: The income of the owner initially can be calculated as follows: The income of the owner after a…

Q: What is the principal goal of a firm like CorpCo? As a managerial economist how would you define an…

A: "Since you have asked multiple questions,we will solve first question for you .IF you want…

Q: I asked this question it was not answered and I was charged please issue me a refund and answer this…

A: The explicit cost is the general and direct payments that are made to the others in the course of…

Q: Jessie, a pharmacist, is planning on opening her own pharmacy. Jessie Pharmacy is expected to…

A: Accounting profit  = Total revenue - Explicit costs   Economic profit = Total revenue - Explicit…

Q: You are a newspaper publisher. You are in the middle of a oneyear rental contract for your factory…

A: The cost of the factory rent was $500,000 per month and the wage cost includes $1 million. These two…

Q: Aoife has been working as a nurse in the local public hospital and earning an annual salary of…

A: Costs are the expenses that firms incur in the production of goods and services. A firm can incur…

Q: Sandra lives in Melbourne and runs a business that sells guitars. In an average year, she receives…

A:

Q: exter set up a computer repair business out of his home office. Based on the square footage of his…

A: Fixed cost for payment of mortgage expenses =$400 per month  Monthly internet bill =$45 Monthly…

Q: Susan Jones has a job as a pharmacist earning $45,000 per year, and she is deciding whether to take…

A: Economic value added, often abbreviated as economic profit, is a way of quantifying the…

Accounting and Economic Profit analysis

One comes across the concept of Profits in the context of business and in analyzing the results of business activity. Profits of a business can be accounting profits, and they can also be economic profits. So how does one understand the concept of accounting versus economic profits?