You've been hired by an unprofitable firm to determine whether it should shut down its unprofitable operation. The firm currently uses 70 workers to produce 300 units of output per day. The daily wage (per worker) is $100, and the price of the firm's output is $30. The cost of other variable inputs is $500 per day. Although
Please show me the steps involved to solve the attached problems. --- 10. For a given operation the fixed costs are 4,000,000. The semi-variable costs are 20% of the fixed costs plus $5.20 per unit. The variable costs are $16.00 per unit. The business unit is looking for a 15% markup. If the units sell for $28.00 per uni
A firms output level is 3,000 units. Their market price for its output is $1.00 per unit. Their production function is q=10*K^.5L^.5 K is fixed at 225 hours and L is 400 hours. the hourly wage rate is $6 and hourly rental rate for K is $8. Should the firm shutdown?
In general what would be the process to find this?
The marginal cost of mining a diamond is a constant $1,000. The following schedule shows demand for diamonds that are mined in South Africa and Russia. Price ($) Quantity 8,000 5,000 7,000 6,000 6,000 7,000 5,000 8,000 4,000 9,000 3,000 10,000 2,000 11,000 1,000 12,000 a. If Russia and South Africa formed a cart
Please help with the attached problems, such as: 3. Suppose that with the following time-dependent Cobb-Douglas production function ... solve for steady-state values of key variables. E.g. output per capita, capital-output ratio. (see attached image file) 4. Similar problem, with a different production function (Y = K, whi
Construct a production possibilities frontier for a nation facing increasing opportunity costs for producing food and video games. Explain how this curve represents the most efficient use of this nation's resources. Show how the frontier changes, given the following events: ? A new and better fertilizer is invented. ? Th
The production function for the personal computers of DISK Inc. is given by Q= 10 (K *L)^0.5. DISK's competitor FLOPPY Inc's production function is Q = 10K^0.6 L^0.4. (a) If K is limited to 9 units, in which company MP of labor greater? (b) What can you say about the MP of labor for a given K?
Need help on an optimal bundling strategy for the golf, luxury, and family options. Discuss profits under each alternative. Thanks. To: Corporate Strategy Analyst From: Marketing Department Subject: Customer Demand for Blue Jet The marketing department has extensively researched the habits of Blue Jet customers. We w
1. a.Can you please define opportunity cost? With the aid of a carefully labelled production possibility curve, could you illustrate the concept of increasing oportunity cost. Why does opportunity cost increase? b. i.What is the difference between elastic and inelastic demand. Please be precise. ii.If a restaurant incre
Q: Two small airlines provide shuttle service between Las Vegas and Reno. The services are alike in every respect except that Fly Right bought its airplane for $500,000, while Fly by Night rents its plane for $30,000 per year. Analyze which airline has lower costs, and explain your reasoning clearly. Be sure to include defin
See the attached file. 1. Explain what, if any, each of the following government actions will have on the output of a profit maximizing monopolist, assuming that none of the actions is so severe as to make the monopolist shut down. Use a graphical model to demonstrate each of the following effects. a. A license fee to be paid
1. Use the information supplied to completely evaluate the trend in productivity for the company that furnished the information (table shown below). 2. You have been presented with the approximate figures for service jobs in certain countries (as shown on the table below). You have also discovered that overal productivity inc
1. Verify that, for the neoclassical production function, the marginal product of capital and the marginalproduct of labor are in fact given by (respectively), ∂Y/∂K =f'(K) and ∂Y/∂L= f(k)- kf'(K) (Minimum requirement: a serious attempt at deriving these expressions.) the professor gave as a clue to k
The Stock Corporation makes two products, paper and cardboard. The relationship between p, the firm's annual profit (in thousands of dollars) and its output of each good is {see attachment}, where Q1 is the firm's annual output of paper (in tons) and Q2 is the firm's annual output of cardboard (in tons). a) Find the profit m
Define the following: functional organization, product organization, geographic organization, matrix organization, and network organization.
Can you please give me an example of a company that has made a strategic decision based on productivity and costs. Can you also explain to me how to incorporate the law of diminishing marginal productivity and the relationship between productivity and cost in relation to the organization?
1.What should Cosgrove recommend regarding next year's total output and price per unit of the incis-a-matic? (See attachment for all questions)
Here is the Scenerio- Labor is only variable input. Output is 4000 unit Marginal Product of labor is 10 Average Product of labor is 50 Price of labor is $150 Marginal product of capital is 40 Average product of capital is 60 Price of capital is $240 Total Fixed Cost is $16000. Output is 4000. Have to find out MC, AVC, AFC, ATC
Suppose Labor is a Variable Input. Capital and Land are the inputs that requires the longest time period before they can be adjusted. Explain the movement of the resources in both SHORT RUN and LONG RUN Labor Capital Land
Subject: Production and Cost in the Short Run Details: 1) 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 why? If not explain why not? In detail. 2) Explain
Category: Economics > Microeconomics Subject: Production and Cost in the Short Run Details: 1) 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 why? If not exp
Details: 1) 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 why? If not explain why not? In detail. 2) Explain why it would cost Pete Sampras or Venus Willi
If the total cost of producing 10 units is $100 and the marginal cost of the eleventh unit is $21, then which of the following is NECESSARILY true? A) Total variable costs of 11 units are $121. B) Total fixed costs are $79. C) The marginal cost of the tenth unit is more than $21. D) The average total cost of 11 units
See attachment please
12. Movement from frontier AE in the figure on the previous page to frontier A'E' would not be the result of A) an increase in the stock of capital. B) an increase in the labor force. C) an increase in all prices at the same rate at the same time. D) an increase in the supply of inexpensive energy. E) none of the
11. Of the following points, which point reflects the most efficient use of available resources in relation to frontier AE in the figure above? A) F. B) G. C) C. D) H. E) Cannot tell from the information provided PlS SEE ATTACHED FILE
(Please show work) 10. Support costs have increased in today's manufacturing environment because: (a) managers have let them get out of control (b) there is now a shift toward greater automation (c) fewer direct materials are being used in production (d) direct labor costs have increased
There are 2 countries, the U.S. and Mexico, that produce 2 goods, manufacturing and agriculture. Manufacturing output in the U.S. is a function of labor and capital inputs. Agriculture output in the U.S. is a function of labor inputs only. Manufacturing output in Mexico is a function of labor input only. Agriculture outp
In what ways does the invention and diffusion of double entry bookkeeping represent a process of productivity increase in the business activity of the 15th century