6. Use the information given here to answer the following questions:Manufacturing:Sales revenue PM QM = 150Payments to labor=W-LM=100Payments to capital=Rx K = 50Agriculture: largsib e diw gairde vilSales revenue = PA-QA = 150g to song orb og ands andPayments to labor=W.LA = 50seogqu2.01Payments to land=RT T=100admul zboog own soubHolding the price of manufacturing constant, suppose theincrease in the price of agriculture is 20% and the increase in thewage is 10%.a. Determine the impact of the increase in the price of agricul-ture on the rental on land and the rental on capital.bas ebens nib. Explain what has happened to the real rental on land and thereal rental on capital.rurgiël od zelimia dosts & al

Rental on Land is the payment made for the use of land. It is a part of the produce which is paid…

a. Determine the impact of the increase in the price of agricul- ture on the rental on land and the rental on capital. videla odl bas ebenso ai b. Explain what has happened to the real rental on land and the real rental on capital.

a. Determine the impact of the increase in the price of agricul- ture on the rental on land and the rental on capital. videla odl bas ebenso ai b. Explain what has happened to the real rental on land and the real rental on capital.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Explicit and Implicit Cost Analysis

The entire idea of the cost of production or production cost is applied corresponding or we can say that it is related to money cost. Money cost refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factors of production or factor services.

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Step 1: Introduce the concept of rental on land & rental on capital.

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Step 2: a. Determine the impact of increase in the price of agriculture on the rental on land and capital.

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Step 3: b. Explain what has happened to the real rental on land and the real rental on capital.

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Week 5 Chapter 5: Production Process and Costs For this week read Chapter 5. Answer the following questions Question ·Bottom of Form XYZ restaurant sells donuts at $2 per unit. It uses capital (which it rents at $5 per hour under a contract for 5 and labor (which is paid a wage of $150 per hour of labor services). Complete the following table and use that information to answer the following questions. K L Q MPL APL VML FC VC TC 5 0 0 0 5 1 50 50 50 50 25 150 175 5 2 125 75 62.5 150 25 300 325 5 3 225 100 75 200 25 450 475 5 4 375 150 93.7 300 25 600 625 5 5 450 75 90 150 25 750 775 5 6 450 0 75 0 25 900 925 5 7 400 -50 57.14 -100 25 1050 1075 5 8 425 -75 53.12 -150 25 1200 1225 5 9 450 -25 50 -50 25 1350 1375 5 10 500 -50 50 -100 25 1500…
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The idea of "economic rent" can be applied to resources other than land. What is economic rent? O The additional "pay" the owner of a resource can earn greater than its "supply price." It's when supply is greater than demand. |0|0|0 O It applies to apartment rent in large cities where rents are outrageous. OIt refers to ridiculously high taxes on entrepreneurs.