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

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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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