Shows the derivative function of: TC = 4Q² + 2Q + DC(Q) + FC, where TC = Total Cost, DC = Depreciation cost of capital for each Q production, and FC = Fixed Cost.
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Shows the derivative function of:
TC = 4Q² + 2Q + DC(Q) + FC,
where TC = Total Cost, DC =
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Solved in 2 steps
- 1. The Primary Metals production function in Table 7.4 of the MMH textbook, holding nonproduction workers constant, can be roughly expressed as Q = 100*L.08*K.37. Use this function to answer the following. Suppose a firm wishes to produce 1200 units of Q. Use an Excel Spreadsheet to find the MRTSLK in adding a 10th unit of Labor. Conduct your analysis using an Excel Spreadsheet and changing Labor by 1, 2, 3, etc., that is, use integer values of L only. In absolute value terms, the MRTSLK when we add the 10th unit of L is ______. A. 114.9. B. 18.4. C. 11.6. D. 7.5. E. 3.6. 2. This is a continuation of the previous problem. Suppose a Primary Metals company’s ratio of PL to PK is 1.40. What is the optimal (cost minimizing) combination of L and K that should be employed by the firm to produce Q = 1200? Conduct your analysis using an Excel Spreadsheet and changing Labor by 1, 2, 3, etc., that is, use integer values of L only. Use a Spreadsheet and not Excel Solver. The optimal L = _____…Consider the following Cobb-Douglas production function for the bus transportation system in a city: Q = Lβ1Fβ2Bβ3 Where L = labour input in worker hours F = fuel input in gallons B = capital input in number of buses Q = output measured in millions of bus miles Suppose that the parameters (α, β1, β2 and β3) of this model were estimated using annual data for the past 25 years. The following results were obtained: β1 = 0.45, β2 = 0.20 and β3 = 0.30 a. Determine the (i) labour, (ii) fuel, and (iii) capital-input production elasticitiesParadise Pottery had the following costs in May when production is 800 ceramic pots: materials, $8,700; labor (variable), $2,900; depreciation, $1,100; rent, $900; and other fixed costs, $1,500. If production changes to 900 units, how much will the total variable costs and total fixed costs be, respectively?
- The profit function in dollars for a product is given -x^3+76x^2-380x-2800 where x is the number of units produced and sold. If break even occurs when 10 units are produced and sold find a quadratic factor of the profit function and find a number of units other than 10 that gives break even for the product.Show that the two-input CES production(attached) has DRS, CRS, or IRS depending on whether B (beta) is smaller than, equal, or greater than 1.Identify which of the following costs are fixed,which are variable, and which are mixed.• Maintenance costs of vehicles used in supplyinggoods.• Direct labor cost.• Wages paid to machine operators.• Depreciation of factory buildings.• Salaries paid to quality control inspectors.• Advertising expenses.• Costs of direct materials.• Employee fidelity insurance.• Cost of electric power.• Sales taxes.
- Identify whether each of the following costs of Granite Construction, Inc., would be classified as direct labor, direct materials, manufacturing overhead, or as selling, general, and administrative costs. Hourly wages paid to backhoe operators. Crankcase oil used in construction machinery. PVC pipes used in a municipal sewer construction project. Depreciation of bulldozers and other construction equipment. Advertising costs. Steel beams used in the construction of an office building. Salaries paid to foremen responsible for supervising multiple construction projects. Legal costs. Gasoline used in trucks that haul construction equipment to various job sites. Hourly wages paid to masons and carpenters. Costs for accounting and tax services. The CEO’s salary. Rivets, screws, nuts, and bolts.Consider the following binary linear programming formulation of a capital budgeting problem. Projects x3 and x4 are a. Mutually exclusive b. x3 is contingent on x4 c. x4 is contingent on x3 d. Not relatedConsider the following costs: Direct materials......................................... P33,000 Depreciation on factory equipment........... P14,000 Factory janitor’s salary............................. P23,000 Direct labor............................................... P28,000 Utilities for factory.................................... $9,000 Selling expenses........................................ P16,000 Production supervisor’s salary.................. P34,000 Administrative expenses........................... P21,000 What is the total amount of manufacturing overhead included above?
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