Ask Question, Ask an Expert


Ask Business Economics Expert

Compute Total cost and marginal cost given the details.

A labour analyst once argued:

If you worked 2,000 hours last year at a wage of $10 per hour and capable to produced 10,000 units of output, your output per hour is 5 units - total output divided by total hours worked. If you average six units an hour this year, your productivity (output per hour) has increased twenty percent. Assuming the unit price is $7.50, the same as last year, and you still get paid $10 per hour, your employer's labour cost per unit has decreased from $2 to $1)67 per unit. He gets added profits on each unit, so he can afford to share extra profits with his workers.

Let's put specific numbers to the scenario Discussed above. Suppose the company's initial investment in capital is $50,000 and the cost of the investment is 10% each year. Material costs are $5 per unit, and the labour cost is $2 per unit when producing 10,000 units at 5 units per hour. If the company invests a new technology, suppose the capital investment is $70,000 with the same cost of capital. The company now pays $5.25 per unit because the supplier of these materials is doing more finishing work thereby reducing the labour requirements for assembly. In this case, labour costs are $1.67 per unit and 12,000 units are capable to produce. The price per unit remains $7.50 in both scenarios. Does the labour analyst's argument hold? describe why or why not, and use data to prove your point.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M917330

Have any Question? 

Related Questions in Business Economics

You will analyze one economics article of your choice the

You will analyze one economics article of your choice. The analysis is due before the end of Week 5. Your instructor will select several of the best analyses for presentation to the class. If the selected article is not ...

American eaglet sells surfing equipment in los angeles la

American Eaglet sells surfing equipment in Los Angeles (LA) and Honolulu (Hon). The demand functions for each of these two groups are QLA = 600 – 2.5PLA QHon = 800 – 4.0PHon where Q is the number sold and P is the price ...

On august 30 2012 shares of stock in eli lilly were selling

On August 30, 2012, shares of stock in Eli Lilly were selling for $45.00 per share. On August 30, 2016, the shares were priced at $78.35. If you bought shares four years ago for $45.00 per share and sold them now for $78 ...

Discuss the concept of a ldquotwilight of white ethnicity

Discuss the concept of a “twilight of white ethnicity". How does this concept match with your experiences of race and ethnicity in the United States? Do you believe “whiteness” will disappear as a racial and/or ethnic ca ...

During a recession the manager for best buys wants to

During a recession the manager for Best Buys wants to increase sales volumes of both flat screen TVs and DVD players to help that department reach its sales goal; however, a recent market research department analysis sho ...

1 you were planning to spend saturday working at your

1. You were planning to spend Saturday working at your part-time job, but a friend asks you to go skiing. Which of the following are included in the true cost of going skiing? Check all that apply. 1. The rental of any s ...

Q1at a management luncheon two managers were overheard

Q1: At a management luncheon, two managers were overheard arguing about the following statement: "A manager should never hire another worker if the new person causes diminishing returns." Is this statement correct? If so ...

Describe the ldquonatural rate of unemploymentrdquo and the

Describe the “natural rate of unemployment” and the estimates for the U.S. What are some of the possible ways in which we could reduce the natural rate of unemployment?

Assignmentmarcetta wong amp palmirotto investment company a

Assignment Marcetta, Wong & Palmirotto Investment Company, a corporation dedicated to brokerage, is General Manager Faye Sherry Stull, besides being the main official which is in charge of the portfolios of the rich and ...

On the other hand nimrod is just as capable a hunter as

On the other hand, Nimrod is just as capable a hunter as ever; it takes him an average of only 2 hours to catch a deer. His fishing has suffered in the same way Grok's has, so that it also will take him 4 hours to catch ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate