Production analyses and calculation with MS EXCEL (ready spreadsheet)
Production analyses and calculation with MS EXCEL (ready spreadsheet)
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Production Costs: What They Are and How to Calculate Them
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FRQ #4: Labor and ProductionAssume that a firm produces output using 100 of fixed inputs. The only variable input is labor, which can be obtained at a wage rate of11. The firm can sell all of the output it produces at a market price of 3.Number of EmployeesTotal Product (Quantity)Marginal ProductMarginal Revenue ProductMarginal Factor Cost0 1 2 3 4 5 6 70 10 25 35 42 46 48 47a) Explain how the law of diminishing marginal returns is demonstrated in this example.b) Using marginal analysis, identif
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A factory costs 800,000. You reckon that it will produce an inflow after operating costs of 170,000 a year for 10 years. If the opportunity cost of capital is 14 %, what is the net present value of the factory? What will the factory be worth at the end of five years? | Numerade
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