Answer:
increased
Explanation:
The correct answer is that the equilibrium wage increased as the equilibrium quantity of labor increased.
Answer:
Statement of Cost per equivalent unit
Particulars Materials Conversion
Cost of beginning work in process $8,130 $9,128
Add: Costs added during the month <u>$226,500</u> <u>$284,232</u>
Total cost A $234,630 $293,360
Number of equivalent units B <u> 9,900 </u> <u> 9,400 </u>
Cost per equivalent unit (A/B) <u>$23.70 </u> <u>$31.21 </u>
Answer: Third
Explanation:
Diminishing returns to labor refers to the phenomenon where every additional worker leads to an increase in production at a decreasing rate.
Using the scenario described, when there was only one employee the company could mow 4 lawns a day. They added a 2nd worker and that figure went to 9 lawns a day which is an increase of FIVE.
When they added a 3rd worker, the figure again went up but only to 12 which is an increase of THREE only as opposed to the last increase of FIVE.
After the third worker therefore, there was an increase but at a smaller rate.