Question

A automer service call center uses customer service I reprezentatives (L) and rents computer software Ck to serve customer calls. The produchor technology technology lineal is servicing each customer call requires exactly I hour of the representative's time or exactly 30 minutes (or half hour of runrung the sytware application. Let Q represent the number of customers served in a Ioday. The hourly wage and rental role for L and K are W = p 10, r = 840 ... las Draw the isoquant that represents this production technology by Write down the corresponding production sunction I Q=f(L,K les What is the cast -minizing input combination, Į and k por serving Q customers ? dy what is the wst function, c(Q) ? es what is the Marginal Cost MC ? Manufacturers outsource austomer service calls to call kenters. let p be the price charged by the call center from manufacturers for servicing the manufacturers Teustomers. Buppose there is a perfectly competitive market for call. benters. The daily market demand for austomer service non manufacturers is; Q= 300 - dp. f what is the equilibrium price & a How many customers are served daily & in the short run, the call center is forad to utilize Is exishng employees. Hence I = Llo) Whore pt is the output obtain in part g) above and on Is the input demand function obtained in par To what is shart-run cuot function for any output level o the um will adjust its inputs to produce a new lo is what & the new price - quantity equilibrium & i output level QLQ question des car servicing eac. time or exactly 30 mit η Λίνος g) and I) to k) for the new prou yourself. Very Important for Exan.

Answer 1

A-4) 1 hour of consi 1 hour of consumer representative time 12 or hay an hour of software application (k). Wa $10 re $40. las This is the case of twear Troquants where the inputs are perfect substitutes of each other. Thus, the Troquante can be represented as a Is, I and I represent the Isoquants of the firm. (6) O= (h+k ar dz L+ 2K. Haber) co To compute cost minimizing techord I MRTS & W teattal) !" MRTS 20/24 - 5 euro en Әarak MRT ker = 10 = ; MRTS > we thus, the firm will only employ labor and o writs of capital Thus, cost minimizing combination, and k*₂0. A Labortu d Total cost = Output produced x a lite o taber a toto exw Marginal cost = aTE 10.2 wage rate. &