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A firm's product sells for $4 per unit in a highly competitive market. The firm produces output using capital (which it rents at $25 per hour) and labor (which is paid a wage of $30 per hour under a contract for 20 hours of labor services). Complete
the following table and use that information to answer these questions. (LOI, LO2,
LO5, LO6)
a. Identify the fixed and variable inputs.
b. What are the firm's fixed costs?
c. What is the variable cost of producing 475 units of output?
d. How many units of the variable input should be used to maximize profits?
e. What are the maximum profits this firm can earn?
f. Over what range of the variable input usage do increasing marginal returns exist?
8. Over what range of the variable input usage do decreasing marginal returns exist?
h. Over what range of input usage do negative marginal returns exist?
The population in country C decreases, due to a lower birth rate. At the same time, there is an increase in the cost of fertilizer, which is used to grow vegetables. Explain how the market for vegetables will be affected by these changes. Clearly indicate how the equilibrium price and equilibrium quantity will be affected by these changes. Make use of a combination of diagrams and verbal explanation to explain your answer. Note that your diagrams should be properly annotated and that marks will be deducted for any missing labels on your diagram.
Trial balance of GM as at 31 December 2021 Debit(RM) Credit(RM)
Sales 126,500
Purchases 99,850
Premises (cost) 100,000
Accum. depreciation at 1 Jan. 2021_Premises 25,000
Plant (cost) 18,000
Accum. depreciation at 1 Jan. 2021_Plant 2,300
Wages & salaries 8,900
Rent expense 7,500
Opening Inventories 5000
Closing inventories 12,500.
Capital at 1 Jan. 2021 80,000
Drawings 25,000
Carriage inwards 4,000
Account receivables & Account payables 27,500 16,000
Bad debts written off 5,000
Other revenue 2,000
Cash at bank 18,950
Bank loan 30,000
300,750 300,750
Add'l info at 31 December 2021:
i.Wages and salaries accrued amount to RM700.
ii. Rent prepaid amounts to RM300.
iii. Bank loan interest of 10 per cent per annum is outstanding.
iv. Provision for doubtful debt for account receivables of 2 per cent is to be made.
v. Depreciation is to be charged at 2 per cent of cost on the premises and 10 per cent of cost on the plant.
prepare Statement of Comprehensive Income for the year ended 31 December 2021
What would be the treatment of IFRS 9 on receivables considering a company that core operation is granting loans to customers.
The price elasticity of demand for urban transit fares has been estimated to lie between -0.1 and -0.6. Based on these results, what is the economic argument for raising transit fares? What political arguments might local governments and transit authorities encounter in opposition to these economic arguments?
Consider the market for ice cream . Using appropriate diagrams, explain how each of the following events will impact the equilibrium price and quantity of ice cream.
a. The population falls.
Explain why a perfectly competitive firm will not shut down in the short run when making losses. Illustrate the answer with an appropriate diagram
Due to substantial increases in prices in country A,the real income level of the population in country A decreases.show on a diagram how the decrease in the income level in country A will affect the demand of meat,which is a normal good.also indicate how equilibrium price an equilibrium quantity will change in country A.
Suppose the production function of a firm is given as X=0.5L ½ K½ price of labor and capital are given as $5 and $10 respectively, and the firm has cos out lay of$ 600
I. The profit maximizing level of L & K to employ.
II. The MRTSL,K at optimum
1.Ten years ago Diana Torres wrote what has become the leading Tort textbook. She has been receiving royalties based on revenues reported by the publisher. These revenues started at £1,700 in the first year, and grew steadily by 4.9% per year. Her royalty rate is 18% of revenue. Recently, she hired an auditor who discovered that the publisher had been underreporting revenues. The book had actually earned 10% more in revenues than had been reported on her royalty statements. Assuming the publisher pays an interest rate of 4.7% on missed payments, how much money does the publisher owe Diana?
