The Return of Detroit City: Enpar manufactures engine parts for Ford using steel as an input. Enpar operates two plants, one in Detroit, MI and one in Greenville, SC. The production functions for the two Enpar plants are: Detroit: QD=20SD - 0.25 Sp² Greenville: QG= 53SG-0.5 SG² where Qp and QG are the outputs of engine parts (in units) from the Detroit and Greenville plants, respectively. Sp and SG are the amounts of steel for the two plants. The firm has 159 units of steel available
Q: What is the dollar value of the invoices in exercise 13 if the dollar: a. depreciates 10 percent…
A: A currency's exchange rate in relation to the U.S. dollar (USD) is known as the dollar rate. The…
Q: In the presence of the rent control, consumers' surplus per month. The price ceiling on rent causes,…
A: The total surplus in a market is a computation of the total well-being of all contributors in a…
Q: What happens if the ATC is above the MR line? Draw what this would look like
A: The cost of a firm includes fixed costs and variable costs. Fixed costs remain fixed in the short…
Q: What is most striking to you in the contemporary development of Mexico?
A: Economic growth is a fundamental aspect of contemporary development in Mexico. The country has…
Q: Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The…
A: Monopolistic competition is one type of market condition where many sellers face the market demand…
Q: Refer to the diagram to the right: Using the appropriate drawing tool, shade in the region that…
A: A firm’s willingness to pay for each unit of labor it wishes to hire is shown by the labor demand…
Q: A supply curve for tomato production is given by Q = 35P - 5. Something causes the supply curve to…
A: Supply curve shows how much quantity is supplied by firms at a given price level.
Q: Jackson Corporation has accumulated minimum tax credits of $475,000 from tax years prior to 2019.…
A: The minimum tax credit is the amount of adjusted net minimum tax for all tax years reduced by the…
Q: Assume that the graphs show a competitive market for the product stated in the question. Price 0…
A: A good is said to be normal if its consumption will increase as income increases. Consumption of…
Q: A bike repair shop charges the competitive market price of $9 per bike repaired (P=$9). The firm's…
A: Perfect competition: A firm in the competitive market is a price taker because it has large number…
Q: Assuming real income is to be $350 million and the price index is 142 calculate nominal income.?
A: The real income of an person or a country is income adjusted for inflation. it is specific from…
Q: Develop a spreadsheet model to determine how much a person or a couple can afford to spend on a…
A: Total monthly gross income = $6000 Non-mortgage housing expense = $300 Monthly installment debt =…
Q: This graph shows the cost curves and marginal revenue curves for a firm. Cost, $ MC 120 80 75 25 b.…
A: In the long run, firms aim to operate at a point where they can earn profits. This point is known as…
Q: 7. Use of discretionary policy to stabilize the economy Should the government use monetary and…
A: Aggregate demand refers to the total demand for commodities and services made by all the economic…
Q: The avocado growing industry in Chile is perfectly competitive, and each producer has a long-run…
A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…
Q: Matt only derives utility from consuming milk shakes. Each week, Matt devotes his entire $20…
A: The utility is the satisfaction that is derived from the consumption of good. The utility level…
Q: a) Chose a tool the Central Bank (the Fed) might use to fight inflation. b) How would it be use? c)…
A: Most countries have a national bank which provides finance and other banking related services to its…
Q: The JSE tracked firmer global peers on Wednesday as anxiety surrounding the global banking sector…
A: In the AD-AS model, the aggregate demand curve represents the total demand for goods and services in…
Q: An automobile repair shop charges the competitive market price of $16 per bike repaired. The firm's…
A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…
Q: Thuy Anh runs a small flower shop in the town of Florabunda. She is debating whether she should…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: consider that the market demand for a textbook is given by P=100-2Q and the market supply is given…
A: Price ceiling is defined as the maximum price that the producer can charge for the product. The…
Q: Quantity (thousands) onsider the diagram above. If there is a sudden reduction in supply, which is…
A: Supply refers to the amount of goods or services that producers are willing and able for sale in a…
Q: Who was the founder of the Grameen Bank? Dr. Muhammod Yunus O Dr. Michael Kremer O Dr. Abhijit…
A: Grameen Bank is a microfinance institution based in Bangladesh that provides small loans, also known…
Q: On January 1, 2012, Albert invested $2,000 at 5 percent interest per year for three years. The CPI…
A: The cost of living is the sum of money necessary for maintaining a particular standard of living,…
Q: The shape of a firm's long-run O variable cost curve marginal revenue curve O fixed cost curve…
A: Over the long run, all inputs are variables and these inputs can be changed in same proportion. The…
Q: Please no written by hand solution Assume that the potential GDP of the economy of Arion is $1,160,…
A: The demand for final goods and services at the specified price level is known as the aggregate…
Q: 1. The market demand curve for mineral water is given by P = 15 - Q. If there are two firms that…
A: P=15-Q MC=3 There are 2 firms in the market In Stackelberg model Firm 1 is the leader
Q: You are a college sophomore who tutors fellow classmates in your free time for extra money. With…
A: Present value (PV) is a financial concept that represents the current worth or value of future cash…
Q: FIG 39.2 - MONETARY POLICY WITH FIXED EXCHANGE RATES & PERFECT CAPITAL MOBILITY Monetary policy is…
A: Monetary policy refers to the actions and decisions taken by a central bank or monetary authority to…
Q: [The soft drink industry is dominated by two cola firms- DEW and HEW. The market is worth $8…
A: In the soft drink industry, two major players, DEW and HEW, compete for market dominance. This…
Q: National saving equals private saving plus governm O A. GDP + NFP – C – G. B. GDP + C + G. C. C+ S +…
A: National saving is the total income that businesses, households, and the government save in an…
Q: Market demand is given as QD = 2000 - 4P Market supply is given as QS = 2P-160 Suppose the…
A: Demand curve is the downward sloping curve. Supply curve is the upward sloping curve. Equilibrium…
Q: Assume that the Eurozone and the USA are the only economies in the world. In the last year, the REAL…
A: States are able to concentrate their efforts on delivering items and services that are capable of…
Q: Q1. Considering a thorough review of the Uganda Revenue Authority (URA) Reforms and Policies. b)…
A: A) Incentives for boosting SMEs in Uganda in the put up-COVID-19 era by the Uganda revenue Authority…
Q: are there any diagrams to aid in the explanation?
A: A pro-cyclical tax policy is one in which tax revenues tend to move in the same direction as the…
Q: Infrastructure, such as public works and public services, is also referred to as social capital.…
A: Public services refer to a wide range of essential services provided by the government or other…
Q: O internal cost. O internal benefit. external cost. external benefit. ep .lassily
A: Internal and external costs & benefits are the economic concepts. The costs explain the expenses…
Q: y is negotiating its accession to the European Union (EU). Make use of economic theory and diagrams…
A: Economic integration refers to the process of combining economic activities and policies among…
Q: 7. When markets fail to allocate resources efficiently, the ultimate source of the problem is…
A: When markets fail to allocate assets correctly, the ultimate source of the problem is often…
Q: Quantity (corn cobs) 20 30 40 Price (dollars) 50 60 70 80 90 4.5 4.0 3.5 3.0 a. Draw Cathy's…
A: Note: As you have posted multiple questions or more than 3 subparts of the question. But as per the…
Q: re is a road between the suburbs and downtown. The road becomes congested at rush hour. As long as…
A: There is a road between the suburbs and downtown. As long as fewer than 99 people use the road…
Q: Price of ski permits($) 20 Sprivate 14 12 10 X 8 6 10 20 30 40 50 60 70 80 90 100 18 16 4 2 0 Skiers…
A: The social optimal level in economics refers to the point at which resources are allocated in a…
Q: A firm is currently hiring capital and labor so that MPL/PL<MPK/PK, if the firm wishes to maximize…
A: Marginal product of an input is the additional output produced by using additional unit of the input
Q: Table 13-1 ABC Bank Balance Sheet Assets Liabilities Reserves $25,000 Desired $20,000 Excess 5,000…
A: Banks provide a reliable and secure system of payment that guarantees a seamless flow of payments…
Q: SE IGN WE did not cover taxes yet. Consider the supply and demand diagram corresponding to this…
A: A product's quantity is considered to be at equilibrium when supply and demand are both equal.…
Q: 2. Monetarism Which of the following is a position held by monetarists? The short-run aggregate…
A: Monetarism emerged during the 1950s and 1960s through the contributions of economists like Milton…
Q: Question 11 Price 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 S D World Price…
A: Demand curve is the downward sloping curve. Supply curve is the upward sloping curve. Equilibrium…
Q: I can not get 7.2, 7.8 or 8.3 when I do the calculations. How did you get them?
A: In this case, we have to discuss the quantity demanded in the predicted changes. That means quantity…
Q: Suppose the following graph shows what prevailed on the foreign exchange market in 2015 with…
A: The value of one currency in another currency's terms is known as the nominal exchange rate. It also…
Q: If the demand for pizza falls, pizza suppliers will suffer economic losses and some firms will…
A: In economics, a market is an amalgamation of systems, organizations, infrastructures and relations…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- The Return of Detroit City: Enpar manufactures engine parts for Ford using steel as an input. Enpar operates two plants, one in Detroit, MI and one in Greenville, SC. The production functions for the two Enpar plants are:Detroit: QD= 18SD – 0.25 SD2 Greenville: QG= 43SG – 0.5 SG2 where QD and QG are the outputs of engine parts (in units) from the Detroit and Greenville plants, respectively. SD and SG are the amounts of steel for the two plants. The firm has 104 units of steel available.How much steel should be sent to Detroit?Enter as a value. ROUND TO THE NEAREST WHOLE NUMBER.Consider the following Cobb-Douglas production function for the bus transportation system in a city: Q = Lβ1Fβ2Bβ3Where 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 = 0.30a. Determine the (i) labour, (ii) fuel, and (iii) capital-input production elasticities .b. Suppose that labour input (worker hours) is increased by 2 percent next year (with the other inputs held constant), determine the approximate percentage change in output. c. Suppose that capital input (number of buses) is decreased by 3 percent next year (which, certain older buses are taken out of service). Assuming that the other inputs are held constant, determine the approximate percentage change in output. d. What type of returns to scale appears…E4 ACME Corporation produces a variety of products for its diverse customer base, including the jet-powered pogo stick and jet-propelled tennis shoes, both of which are essential for catching roadrunners. Currently, they produce 40,000 engines per year that are used in the production of these two products. As the production manager for thisproduct line, you have determined that last year’s costs to produce the engines included: $99,600 in direct material expenses, $298,800 in direct labor expenses, $224,100 in variable overhead costs (i.e. power to operate the equipment), and $116,200 in fixed overhead costs (i.e. utilities to keep the factory operational). ACME plans to produce these engines only for the next 6 years. If they produce the engines in-house, they anticipate that direct material costs will increase at a rate of 5% each year. Further, they anticipate that labor costs will increase at a rate of 6% per year and variable overhead costs will increase at a rate of 3% per year.…
- 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 elasticitiesShow 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.
- Coffee RoasteryFocused on keeping its entire supply chain green, the roastery carefully selects the suppliers from whom it sourcescoffee beans. It works directly with farms and farm cooperatives, who are accredited as treating their farmers andemployees fairly and ethically. Approximately 50% of the roastery’s output is used by BB’s academy and coffee bars,ensuring a continued green chain across its businesses. In 2020, the coffee roasting unit produced 4500 tonnes andcontributed 15% of BB’s total revenue. The sustainability positioning has differentiated BB from its peers, and helpedit earn collaborations with socially responsible corporates. Best of all, there is now capacity to expand production toaround 18,000 tonnes at the roastery and start exporting roasted coffee beans to other countries.At present, the roastery is roasting 100% Arabica beans. The average wholesale price BB is able to sell the Arabicabeans for in 2021 is US$3.10, down from US$4.42 in 2014. However, projections…Shunda is a calculator assembly company, purchase a full set of the calculator parts, assembled into a calculator to sell in the market. In recent years, the price of the calculator has remained steady at 60 yuan/units, the basic data of the input and output of shunda in 2013are listed in the table below: Hourly wage is 6 yuan per hour, price of parts is 25 yuan per set, power consumption is paid by 0.6 yuan per watt, the extract depreciation of equipment is 3 yuan per hour, and Shunda spends fixed costs 10000 yuan per month to pay all of the regular fee According to the above data, is it possible to estimate the production function and cost function (TC, TVC, AC and AVC)?firm decides to invest X units of capital in Project A and Yunits of labour in Project B. iv. The expected return for each unit of investment is $500 in Project A and $1500 in Project B. However in order to meet the expectations of the firm's ethical and environmental policy values of X and Y must satisfy the constraint x+y-5x-6y= 210. How many units of each type should firm buy in other to maximize total volume? What is the implication of a unit change in investment in capital and (or) Labour Economic Analysis?
- At the beginning of the year, managers at King Industries estimated $420000 in manufacturing overhead, 20000 direct labor hours and 50000 machine hours. Actual manufacturing costs at the end of the year were $425000 in manufacturing overhead. During the year, 22000 direct labor hours and 47000 machine hours were incurred. If overhead is applied based on direct labor hours, what is the predetermined overhead rate for the coming year? $21.00 per direct labor hour $8.40 per direct labor hour $19.09 per direct labor hour $9.04 per direct labor hourSally Statistics is implementing a system of statistical process control (SPC) charts in her factory in an effort to reduce the overall cost of scrapped product. The current cost of scrap is $X per month. If a 75% learning curve is expected in the use of the SPC charts to reduce the cost of scrap, what would the percentage reduction in monthly scrap cost be after the charts have been used for 6 months? (Hint: Model each month as a unit of production.)Whimsical Toys A US-based designer and manufacturer of wimsical, high quality, wooden toys is looking to expand manufacturing capacity to service its growing domestic demand. The company currently owns one manufacturing facility in North Carolina and is considering either building onto this facility or sourcing some of its production from Mexico. If it sources from Mexico, the company must further consider whether to own this facility or outsource this fraction of its production to another company. Labor cost as a % of total bill of materials cost at the North Carolina site is currently 30% for a typical wooden toy and the average wage of workers in the plant is $27/hour. The average wage of workers doing similar work in Mexico is $4.50/hour. If the labor costs remain the same as described above, what percent of product cost results in no cost difference between production in US and Mexico? a. 0% b. 18% c. 20% d. 22%