According to the Wall Street Journal, Mitsubishi Motors recently announced a major restructuringplan in an attempt to reverse declining global sales. Suppose that as part of the restructuring planMitsubishi conducts an analysis of how labour and capital are used in its production process. Priorto restructuring Mitsubishi’s marginal rate of technical substitution is 0.15 ( in absolute value). Tohire workers. Suppose that Mitsubishi must pay the competitive hourly wage of US$ 15. In thestudy of production process and markets where capital is procured, suppose that Mitsubishidetermine that its marginal productivity of capital is 0.5 small cars per hour at its new targetedlevel of output and that capital is procured in a highly competitive market. The same studyindicates that the average selling price of Mitsubishi’s smallest car is US$ 9500. Determine therate at which Mitsubishi can rent capital and marginal productivity of labour at its new targetedlevel of output. To minimize costs…

Item 3 Kanesha is an entrepreneur and has recently opened her first coffee shop, The Coffee Cat. She pays $2,400 rent each month, $3,200 for employee payroll, and $900 for supplies. She was planning on selling several of her own tables and chairs on Craigslist for $300, but instead she brought them to The Coffee Cat. Additionally, she quit working as an accountant where she was earning $53,000 per year to open up the shop. Based on this information, identify:   Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box.   a. Explicit costs. check all that apply 2 Payroll Tables and chairs Supplies Accounting wages given up Rent b. Implicit costs. check all that apply 4 Accounting wages given up Tables and chairs Payroll Rent Supplies Calculate annual:   Instructions: Enter your responses as a whole number.   c.…

In 2018 Giles inherited a storefront from his uncle and so he left his job as a school librarian (which paid $50,000 per year) to open a novelty shop called the Magic Box. Giles was able to make an assortment of trinkets using $20,000 worth of materials that he sold for a total of $60,000. In addition, he purchased another $170,000 worth of goods and resold them for $190,000. He pays $5,000 per year for electricity. In order to decorate his shop, he purchased $2,000 worth of memorabilia to hang on his walls using a loan from the bank that charges 10% interest. At the end of the year, he sold off the same memorabilia to another store for $1,000. While he knows he could have rented out his inherited storefront to Jamba Juice for $20,000 per year, he chose not to. Because of his use of the storefront, it went down in value from $500,000 to $490,000 (and it would not have lost this value if it was being used by Jamba Juice). 1. How much revenue did Giles’s business generate?2. Giles is…

Suppose you manage a business that produces high-end dog food. The business produces 3,000 dog food cans per day, and can sell each can at $2.00/can regardless of how much is produced. Your firm currently employs 20 workers, each of whom earns $15/hour and work 8 hours per day. Inputs, like the meat for the food and the metal for the can, cost $1.00/can. Your overhead expenses, including rent, property taxes, insurance, etc., which does not vary with the number of cans produced, equals $250 per day. a. (3) Calculate your company’s current daily profit. You’re considering whether to hire additional workers to produce additional cans. Each worker would be paid $15/hr. and material costs remain constant at $1.00/can. You estimate the 21st employee would produce an additional 200 cans per day, and the number of additional cans from each additional worker would be decreasing by 40 (a 22nd employee could produce an additional 160 cans per day, a 23rd employee could produce an additional…

6. Which of the following are true (check all that apply) Note: IRTS=increasing returns to scale, CRTS=constant returns to scale, DRTS=decreasing returns to scale a. if the production function exhibits IRTS, then the cost function will exhibit economies of scale b. if the production function exhibits IRTS, then the cost function will exhibit diseconomies economies of scale c. if the cost function exhibits diseconomies of scale, then the producing function exhibits DRTS d. if the production function exhibits CRTS, then the cost function will exhibit constant economies of scale e. if the production function exhibits DRTS then the cost function will exhibit diseconomies of scale

A bitcoin miner, Alex, needs only electricity (E) and computer (K) to mine bitcoin. Assume that the production function for his bitcoin business is of Cobb-Douglas type,?(?,?)=???? with?+?< 1, resulting in strictly convex isoquants and is the same in South Korea and USA. Suppose that, similar to the podcast, the price per unit of electricity is higher in South Korea than in USA. Suppose that the price of a computer is the same in both countries. i. Determine whether it is more expensive to mine one bitcoin in South Korea than in USA based on the above assumptions by using appropriate diagram and explain your answer. Please keep electricity on the horizontal axis and computer on the vertical axis while drawing your diagram.

Last year, Jarod left a job that pays $80,000 to run his own bike-repair shop. Jarod’s shop charges $65 for a repair, and last year the shop performed 4,000 repairs. Jarod’s production costs for the year included rent, wages, and equipment. Jarod spent $60,000 on rent and $120,000 on wages for his employees. Jarod keeps whatever profit the shop earns, but does not pay himself an official wage. Jarod used $25,000 of his savings to buy a machine for the business. His savings were earning an annual interest rate of 6 percent.  1.  What is Jarod’s annual accounting profit? What is Jarod’s annual economic profit?

Your product sells for $5 per unit, labor costs $5 per unit, and the rental price of capital is $20 per unit. Complete the following table, and then answer the accompanying questions.  (1) (2) (3) (4) 5 6   L K Q MPL P VMPK   0 5 0         1 5 10         2 5 30         3 5 60         4 5 80         5 5 90         6 5 95         7 5 95         8 5 90         9 5 80         10 5 60         11 5 30             b. Which inputs are fixed inputs? Which are the variable inputs?c. How much are your fixed costs?

A commercial fisherman notices the following relationship between hours spent fishing and the quantity of fish caught: Hours       Fish (pounds) 0                     0 1                    10 2                    18 3                    24 4                    28 5                    30 What is the marginal product of the 4th hour spent fishing?     Question 8 options:   8   4   6   2