You are a manager at Glass Incorporated—a mirror and window supplier. Recently, you conducted a study of the production process for your single-side encapsulated window. The results from the study are summarized in the following table and are based on the 8 units of capital currently available at your plant. Each unit of labor costs $60, each unit of capital is $20, and your encapsulated windows sell for $12 each. Given this information, what is your optimal labor and output decision? Labor: Output: Given these decisions, what will be your profit?
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Labor:
Output:
Given these decisions, what will be your profit?
$
(1) Labor L |
(2) Capital K |
(3) Output Q |
---|---|---|
0 | 8 | 0 |
1 | 8 | 10 |
2 | 8 | 30 |
3 | 8 | 60 |
4 | 8 | 80 |
5 | 8 | 90 |
6 | 8 | 95 |
7 | 8 | 95 |
8 | 8 | 90 |
9 | 8 | 80 |
10 | 8 | 60 |
11 | 8 | 30 |
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- Suppose you manage a business that produces high-end dog food. The business produces 3,000 dog food cans per day, and can sell each can at $2.00/can regardless of how much is produced. Your firm currently employs 20 workers, each of whom earns $15/hour and work 8 hours per day. Inputs, like the meat for the food and the metal for the can, cost $1.00/can. Your overhead expenses, including rent, property taxes, insurance, etc., which does not vary with the number of cans produced, equals $250 per day. a. (3) Calculate your company’s current daily profit. You’re considering whether to hire additional workers to produce additional cans. Each worker would be paid $15/hr. and material costs remain constant at $1.00/can. You estimate the 21st employee would produce an additional 200 cans per day, and the number of additional cans from each additional worker would be decreasing by 40 (a 22nd employee could produce an additional 160 cans per day, a 23rd employee could produce an additional…You are a manager at Glass Inc.—a mirror and window supplier. Recently, you conducted a study of the production process for your single-side encapsulated window. The results from the study are summarized in the following table and are based on the 8 units of capital currently available at your plant. Each unit of labor costs $60, each unit of capital is $20, and your encapsulated windows sell for $12 each. Given this information, what is your optimal labor and output decision?Q#3: XYZ construction are manufactures of slabs and are the major suppliers for orange train in Lahore. XYZ is manufacturing two types of slabs. The cost for these two types of slabs are $175 and $225, respectively. XYZ current production capacity is 200 slabs (both types). Because of the urgency of the need, government of the Punjab would pay the manufacture a bonus of $50,000 plus an additional $25 for each of the unit greater than 200. Determine the function which determine the sales of the number of slabs provided of each type by XYZ construction. What is the expected profit if XYZ is manufacturing 150 slabs of type 1, and 250 slabs of type IL
- The Cobb-Douglas production function for a particular product is N(x,y) = 40x0.6.0.4, where x is the number of units of labor and y is the number of units of capital required to produce N(x, y) units of the product. Each unit of labor costs $40 and each unit of capital costs $120. Answer the questions (A) and (B) below. (A) If $300,000 is budgeted for production of the product, determine how that amount should be allocated to maximize production, and find the maximum production. (B) Find the marginal productivity of money in this case, and estimate the increase in production if an additional $50,000 is budgeted for the production of the product. (A) If $300,000 is budgeted for production of the product, determine how that amount should be allocated to maximize production, and find the maximum production. Production will be maximized when using units of labor and units of capital.You are a manager at Glass Inc. — a mirror and window supplier. Recently, you conducted a study of the production process for your single-side encapsulated window.The results from the study are summarized below and are based on the 8 units of capital currently available at your plant. Workers are paid $ 60 per unit, per unit capital costs are $ 20, and your encapsulated windows sell for $ 12 each. Given this information, optimize your human resource and production decisions. Find a profit you earn. Labor Output 0 0 1 10 2 thirty 3 60 4 80 5 90 6 95 7 95 8 90 9 80 10 60Suppose that a paving company produces paved parking spaces (q) using a fixed quantity of land (T) and variable quantities of cement (C) and labor (L). The firm is currently paving 1,000 parking spaces. The firm's cost of cement is $4,200.00 per acre covered (c) and its cost of labor is $9.00/hour (w). For the quantities of C and L that the firm has chosen, MPC = 70 and MP = 3. Is this firm minimizing its cost of producing parking spaces? O A. No since MPc does not equal MP, O B. No since w does not equal c. MPL does not equal MP. O C. No since O D. Yes since MP, xc equals MP, x w. Does the firm need to alter its choices of C and L to decrease cost? O A. Yes, they need to increase C which would cause MP, to increase and MP. to decrease. O B. Yes, they need to increase L which would cause MP, to decrease and MP, to increase. O C. Yes, they need to increase C which would cause MP, to decrease and MP, to increase O D. Yes, they need to increase L which would cause MP, to increase and MP,…
- The Cobb-Douglas production function for a particular product is N(x,y) = 80x0.6.0.4, where x is the number of units of labor and y is the number of units of capital required to produce N(x, y) units of the product. Each unit of labor costs $40 and each unit of capital costs $60. Answer the questions (A) and (B) below. (A) If $150,000 is budgeted for production of the product, determine how that amount should be allocated to maximize production, and find the maximum production. (B) Find the marginal productivity of money in this case, and estimate the increase in production if an additional $50,000 is budgeted for the production of the product. C (A) If $150,000 is budgeted for production of the product, determine how that amount should be allocated to maximize production, and find the maximum production. Production will be maximized when using units of labor and units of capital.Marah is deciding whether or not to open a lemonade stand. She expects to sell 20 cups of lemonade for $1 per cup. She already made a sign that cost her $10 and will have $15 worth of additional costs for cups and lemonade mix if she decides to open the stand.You are a manager at Glass Incorporated—a mirror and window supplier. Recently, you conducted a study of the production process for your single-side encapsulated window. The results from the study are summarized in the following table and are based on the 8 units of capital currently available at your plant. Each unit of labor costs RM 60, each unit of capital is RM 20, and your encapsulated windows sell for RM 12 each. Labor L Capital K Output Q Marginal Product of Labor MPL Average Product of Labor APL Average Product of Capital APK Value Marginal Product of Labor VMPL 0 8 0 1 8 10 2 8 30 3 8 60 4 8 80 5 8 90 6 8 95 7 8 95 8 8 90 9 8 80 10 8 60 11 8 30…
- You are a manager at Glass Incorporated—a mirror and window supplier. Recently, you conducted a study of the production process for your single-side encapsulated window. The results from the study are summarized in the following table and are based on the 8 units of capital currently available at your plant. Each unit of labor costs RM 60, each unit of capital is RM 20, and your encapsulated windows sell for RM 12 each. Labor L Capital K Output Q Marginal Product of Labor MPL Average Product of Labor APL Average Product of Capital APK Value Marginal Product of Labor VMPL 0 8 0 1 8 10 2 8 30 3 8 60 4 8 80 5 8 90 6 8 95 7 8 95 8 8 90 9 8 80 10 8 60 11 8 30…The Cobb-Douglas production function for a particular product is N(x,y) = 60x0.7 0.3, where x is the number of units of labor and y is the number of units of capital required to produce N(x, y) units of the product. Each unit of labor costs $40 and each unit of capital costs $120. Answer the questions (A) and (B) below. (A) If $800,000 is budgeted for production of the product, determine how that amount should be allocated to maximize production, and find the maximum production. Production will be maximized when using units of labor and units of capital.The Cobb-Douglas production function for a particular product is N(x,y) = 80x0.6y0 4, where x is the number of units of labor and y is the number of units of capital required to produce N(x, y) units of the product. Each unit of labor costs $40 and each unit of capital costs $100. If $500,000 is budgeted for production of the product, determine how that amount should be allocated to maximize production. Production will be maximized when using units of labor and units of capital.