There is a cupcake company. It produces cupcakes using workers and machines. Each week it produces...
You manage a plant that mass-produces engines by teams of workers using assembly machines. The technology is summarized by the production function qequals=2020KL where q is the number of engines per week, K is the number of assembly machines, and L is the number of labor teams. Each assembly machine rents for requals=$50 comma 00050,000 per week, and each team costs wequals=$4 comma 0004,000 per week. Engine costs are given by the cost of labor teams and machines, plus $5...
You manage a plant that mass produces engines by teame of workers using assembly machines. The chrologie summarized by the production function - 10KL Where is the number of engines per week. Kis the number of assembly machines, and is the number of labor teams. Each assembly machinerents for re$10,000 per week, and each team costs w $8,000 per week Engine costs are given by the cost of labor teams and machines, plus $1,000 per engine for raw materials. Your...
Charlie's Cupcakes is a company that produces cupcakes. The company uses a factory to produce many cupcakes per day. Factory workers mix the ingredients and package the cupcakes to sell them to customers. 1. List the direct and indirect materials needed to make the cupcakes. 2. Which workers would be considered direct labor? Which workers would be considered indirect labor? 3. What other manufacturing overhead costs would be incurred in this production process?
You manage a plant that mass-produces engines by teams of workers using assembly machines. The technology is summarized by the production function q=20KL where is the number of engines per week, K is the number of assembly machines, and L is the number of labor teams. Each assembly machinerents for $30,000 per week, and each team costs w = $6,000 per week. Engine costs are given by the cost of labor teams and machines, plus $2,000 per engine for raw...
Michael, Dwight and Jim run a paper company. Each week, they need to produce 1000 reams of paper to ship to their customers. The paper’s long run production function is Q=min (4K, L) where K is quantity of capital rented and L is quantity of labor hired. The weekly cost function is C=10K+2L. What is the minimum cost of producing 1000 reams of paper?
Question 2: You own and operate a cupcake store that is adjacent to a muffin shop; all that sep- arates the two businesses is a wall. Your cost function is C(g) 36-2 +, where q represents the number of cupcakes produced and the 36 represents what the salary you pay your head baker. The muffin shop next door has cost function C(a) 364 where q represents the number of muffins produced and which also employs a head baker at a...
Priyanka's company has the production function Q=100K^0.5L^0.5, where Q measures output, K measures machine hours, and L measures labor hours. Suppose that the rental rate of capital is R=$30, the wage rate is W=$15, and the firm wants to produce 5,000units of output. Use the Lagrange method to find the optimal input mix. What the optimal level of K & L?
1. Suppose cars are produced using workers and machines as perfect complements. The production func- tion for producing cars is: F(K, L) = min(2K,5L) (a) Setup the short run cost minimization problem when K = 10. (2 points) (b) Solve for the short run optimal amount of labor Lsr() and short run minimized cost Csr(w,r,q). Circle your answer. (4 points) (c) Now suppose the car factory can freely choose capital (K) and labor (L). Setup the long run cost minimization...
Clear View is a manufacturer of glass. It uses inputs of labor L (workers per week) and capital K (machines per week) to manufacture output (tonnes per week) using the technology Q=10/LVK. The wage is 900 ($ per worker) and the cost of capital is 1600 ($ per machine). In the long-run, what is the firm's cost of producing an output Q = 120 (tonnes per week)? A. 61,200 ($ per week) B. 14,400 ($ per week) 50,000 ($ per...
Tiffany's company has the production function Q=2K^0.5L^0.5, where Q measures output, K measures machine hours, and L measures labor hours. Let the wage rate be W, and suppose that the rental rate of capital is R=$20 and the firm wants to produce 400 units of output. Use the Lagrange method to find the demand curve for labor as a function of the wage rate. Your answer will have L on the left hand side of the equation. On the right...