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Which term refers to the cost a firm incurs for labor?
Wages A+
The cost of a firm that vary with the level of production are called?
variable cost
Which cost amounts can be found in a firm's accounting records?
sunk cost
Is it true that Retained earnings have no cost to the firm?
Yes
Is it common for a service company to charge eighteen percent on everything even their labor?
No. 18% is very low. Most companies will want to make 35 - 50% Gross Profit on parts and 65 - 80% on labor. So you would charge $100 for a part which costs $60; and charge $100 for an hour's labor when you pay the employee $25/hr. Even a law firm or accounting firm will mark up labor by more than 18%, although their gross profit on labor (hours) will not be as high as other industries.
Which term refers to the cost a firm incurs for labor?
Wages A+
What term refers to the cost a firm incurs for capital goods?
Interest
Which term refers to the cost a firm incurs for capital goods?
interest
Which term refers to the cost of a firm incurs for capital goods?
Interest
What happens if a company over invests in net working capital?
If a firm over invest in net working capital, it incurs cost in the form of opportunity cost.
What demand curve indicates the firm incurs a loss?
It's when the MR is not equal to MC. The firm in this case is unable to produce output the equals marginal revenue to marginal cost.
When the firm attains minimum average variable cost how many units of labor is it using?
When a firm attains minimum average variable cost, the number of units of labor it is using depends on the average product.
What is Efficient scale?
Scale efficiency is the potential productivity gain from achieving optimal size of a firm
What is labour intensity?
Labor intensive refers to the combinations of factor inputs for a firm. If a firm produces a good that is labor intensive it means that the number of units of labor is high relative to the number units of capital (or whatever other factor of production there is). For example, education and teaching is very labor intensive, as the teaching field needs a lot of people to educate and handle the administration of education. It is also not likely that the teaching sector will not shift to ever be capital intensive. Any firm that produces a good that is intensive in any factor is vulnerable to shocks or changes in the cost of that factor. If the price of labor increases it will greatly hinder the ability the firm's ability to produce that good.
What is firm equilibrium?
Firm equilibrium refers to a situation where a firm achieves a balance between its costs and revenues, maximizing profits. This is attained when the firm produces the level of output where marginal cost equals marginal revenue. It represents the point of optimization for the firm.
How can firm increase efficiency labor?
60 %
What steps does the firm need to take to reconcile labor supply and labor demand?
Labor supply, and demand is what determines the cost of Labor. Firms must consider their margin, pricing policy, improvement costs to raise productivity, market share, and competition, to arrive at a labor level reconciliation. Or The first step a firm needs to take to reconcile labor supply and labor demand is to analyze what problems need to be resolved. The goal is to have the labor supply, which is made up of the hours employees work, equal the labor demand, which is the work that needs to be done. Some firms hire outside consultants to do this for them.
