Answer:
Marginal Revenue Product=150
Marginal Resource Cost= 100
Explanation:
Marginal revenue product (MRP) is the change in total revenue that results from a unit change of some type of variable input.
Marginal Revenue Product= Revenue Change
/Additional Input
Marginal resource cost (MRC) is the change in total cost that results from a unit change of some type of variable input.
Marginal Resource Cost= Cost Change
/Additional Input
In this situation we must calculate the change of revenues (MRP) and cost (MRC) when we add a new vehicle.
We are increasing our delivery fleet in 1 unit
First calculate the change in total revenue
Total revenue= 1,500 packages * $0.10 in revenue=150
Marginal Revenue Product=$150/1=150
The Cost change is $100,
so Marginal Resource Cost= $100/1=100
Demand should be right since its the public's demand what gets put out in the market for them to consume.
Answer:
B. allows businesses to operate without much government
interference.
Explanation:
The free enterprise system is an economic model where government participation is minimal. The private sector owns the majority of factors of production. The laws of supply and demand determine market prices, the type, quality, and quantity of goods to be availed for sale.
The government's role is mainly regulatory. Buyers and sellers have the freedom to choose what to sell or buy. Profits are a big motivation to do business under the free enterprise system.
Answer:
See below
Explanation:
Given the above information, we can compute variable manufacturing overhead efficiency variance to be;
= (SA - AQ) × SR
Where
Standard quantity = SQ = 19,000
Actual Quantity = AQ = 7,600
Standard Rate = SR = $1.9
Variable manufacturing overhead efficiency variance
= [(19,000 × 0.3) - 7,600] × $1.9
= (5,700 - 7,600) × $1.9
= $3,610 U
Answer:
The total cost of operating a truck would be $18000 as calculated below.
Explanation:
The total costs of operating the truck is a combination of fixed costs of $5500 per year and variable of $0.50 per mile ,hence the total cost function is given as:
TC=5500+0.50X
Where represents the number of miles driven per year.
Since X=25000 miles
TC=$5500+($0.50*25000)
TC=$5500+$12500
TC=$18000
The understanding here is that wages paid to the two employees working with the truck is already embedded in the fixed costs of $5500 per year, otherwise that would been given as a distinct cost entirely.
