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Labour Economics

Accounting Profits

A construction manager earning $70,000 per year working for a regional home builder decided to open his own home building company. He took $100,000 out of one of his investment accounts that had been earning 6% a year and used that money to start up the business. He worked hard the first year, hiring one employee (his only sal

Chemical Company Sales

The equation describing the sales trend of the Chemical Company is St=21.3+1.3t, where St is the sales (in millions of dollars per month) of the firm and t is time measured in months from January 1995. The firm's seasonal index of sales is: Jan 103 May 101 Sept 121 Feb 80 June 104 Oct 101

David Upton is president of Upton Manufacturing

Please read the problem below and respond to (a) and (b) illustrating the work of how the answer was derived. David Upton is president of Upton Manufacturing, a producer of Go-Kart tires. Upton makes 1,000 tires per day with the following resources: Labor: 520 hours at $13 per hour Solvent: 100 gallons at $5 per gall

Eric Johnson - billiard balls

For the problem below, please show the productivity change for each category and then determine the improvement for labor-hours, the typical standard for comparison. ----------------------------------------------------------------------- Eric Johnson makes billiard balls in his New England Plant. With recent increases in

Product Costing - DuPont's Kevlar

Product Costing In the text you used accounting data on DuPont's Kevlar product line to determine the total manufacturing cost to produce a pound of Kevlar. Similar data on DuPont's Teflon product line are provided below. Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $60.0

Capital Stock and PPF Shifts

Suppose that the country experiences an increase in its capital stock. How would the edgeworth box change? How would the production possibilities frontier change as a result? Could the could coutry now obligate more of both goods than before the increase in capital stock or more of only the capital intensive good. Explain.

Firm A plans to produce 500 units per day of good X.

Firm A plans to produce 500 units per day of good X. The firm can choose either of the following two input combination t produce 500 units per day. Process 1 Process 2 Labor 8 12 Capital 14 7 To obtain the services of labor and capital for a day, f

The Relative Marginal Products of Labor and Capital

A producer is hiring 20 units of labor and 6 units of capital (bundle A). The price of labor is $10, the price of capital is $2, and at A, the marginal products of labor and capital are both equal to 20. In equilibrium: a. MPL = MPK b. MPK will be more than 20 c. MPK will be less than 20 d. MPL will be 5 times MPK e. None o

source of capital

Fluffy's Cat Farms A Delaware Company Pro-forma and Actual Results (Income Statement) As of December 31 of the year indicated. 2005 (Actual) 2006 (Pro-Forma) Sales 100 250 Cost of Goods Sold 50 100 Gross Margin 50 150 Rent and Utilities 10 20 Selling General and Admin 20 50 Total Operating Expenses 30 70 Depreciat

Reservation Wage

I understand the definition of a reservation wage, but I am not sure how to essentially compute it. Here is a typical question I have come across: John's utility function is U(C, L) = C*L Where C is Consumption, and L is Leisure. The most Leisure John can get in a week is 168 hours. Regardless how many hours a week John w

Should We Purchase That New Copier?

Campus Print Shop is thinking of purchasing a new, modern copier that automatically collates pages. The machine would cost $22,000 cash. A service contract on the machine, considered a must because of its complexity, would be an additional $200 per month. The machine is expected to last eight years and have a resale value of $4

Management Compensation Labor Economics

An open-ended discussion question concerning managers' compensations in corporate headquarters and in geographic locations. There are no right or wrong answers. I simply want to see the question discussed from different points of view. Please give me your point of view with supporting arguments/explanations. See the attached

Marginal Product of Labour notes

A firm identifies the following relationship between the real wage it pays and the effort exerted by its workers: Real Wage Effort 8 7 9 10 12 15 13 17 16 19 17 20 The marginal product of labor for this firm is MP

Labour Variances & Labour Efficiency

Standard labor hours per unit of output: 2.8 standard labor rate per hour: 11.50 operations for the last month: actual hours worked: 6900 actual total labor cost: 80,385 actual output: 2300 units What is the labor variance for the month? What is the labor efficiency rate for the month?

Economics Output Maximization and Profit Maximization

What you are solving for in these problems is the optimal input combination based either on what I call Solution #1 and Solution #2; Solution #1 guarantees output maximization and Solution #2 guarantees profit maximization. Use them where appropriate. Use the optimization procedure to get answers not an Excel result. 1. T

Corporate diversity

How has the introduction of females and minorities in the corporate structure impacted the supply of labor and the economy?

Data analysis of a Listed Company

Maher Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $129 Units in beginning inventory 0 Units produced 3,700 Units sold 3,600 Units in ending inventory

Real wage overview

I need some assistance to the questions below. Please help. Thank you. During the economic expansion of the late 1990's, wages increased significantly for all types of workers. One possible explanation for this (other than favorable economic conditions which have increased the demand for labor) is that the productivity of la

Problem Set

2. Prime costs of a company are $3,000,000, manufacturing overhead is $1,500,000 and direct labor is $750,000. What is the amount of direct materials? a. $1,500,000. b. $750,000. c. $2,250,000. d. Cannot be determined from the information provided. 9. Which of the following is not typical of tradit

Overhead costs using traditional costing and ABC

Overhead costs using traditional costing and ABC. (See attached file for full problem description) (a) Predetermined... $xxx ÷ xxx hrs. = $xx.xx per machine hour (b) Manufacturing cost per stair under traditional costing: Direct materials $xxx,000 Direct labor  xxx,000 Overhead (xxx X $xxx) &#8194

VMPs of 10 workers in a hypothetical labor market

The following table describes the VMPs of 10 workers in a hypothetical labor market. Worker VMP/hour 1 $10 2 $20 .. 9 $90 10 $100 Further assume that Firm 1 pays a worker a piece rate and Firm 2 pays a time rate equal to $40/hour. (a) How do workers sort themselves across fir

Labor econ

Suppose that it is more difficult to monitor workers at larger firms than at smaller firms. According to the delayed payment compensation model, would workers at smaller firms have flatter or steeper age-earnings? Explain how an empirical test of this argument would be problematic.

Marginal Revenue and Marginal Cost of Job Search

Suppose that that marginal revenue and marginal cost of job search are MR=50 - 1.5w and MC = 5 + w. (i) What is the worker's asking wage? (ii) Would the worker accept a $15 wage offer? (iii) Would anything change if unemployment benefits were reduced such that the y-intercept of the MC curve increased four-fold. Show graphi

Labor economics

4. Suppose that a worker's skills can be summarized by the number of efficiency units she owns and the distribution of efficiency units in the population such that worker 1 has one efficiency unit, worker 2 has 2 efficiency units, and so on. There are 100 workers in the population of the country of Vin. In deciding whether to mo

Labor economics

3. Fleeing political tyranny in country X, assume that 100,000 residents of X leave the nation en masse to a nearby city (City A) in a bordering country (call it country Y) that is democratic. Researchers in Y are interested in how the influx of new labor into Y has affected the local labor market of city A. They have collected