Acme container corporation produces egg

Assignment Help Basic Computer Science

Reference no: EM13903109

Acme Container Corporation produces egg cartons that are sold to egg dis- tributors. Acme has estimated this production function for its egg carton division:

Q = 25L^0.5K^0.5

where Q = output measured carton lots, L = labor measured in person hours, and K = capital measured in machine hours. Acme currently pays a wage of $10 per hour and considers the relevant rental price for capital to be $40 per hour. Determine the optimal capital-labor ratio that Acme should use in the egg carton division

Reference no: EM13903109

Questions Cloud

Explain how a pie chart can be constructed : Explain how a pie chart can be constructed. If a data value had relative frequency r, at what angle would the lines defining its sector meet?

How firm should evaluate performance of planning department : Outline an effective control system for the planning department's activities that is, how the firm should evaluate the performance of the planning department.

Compare and contrast cobb''s essay with staples'' : Compare and contrast Cobb's essay with Staples'

Represent relative frequency line graph : Represent these data in a frequency table a relative frequency line graph.

Acme container corporation produces egg : Acme Container Corporation produces egg cartons that are sold to egg dis- tributors. Acme has estimated this production function for its egg carton division

Analysis of zara operation/business model in particular it : Analysis of Zara operation/business model in particular IT in light of economic theory of efficiency of organisations

Compute the variances between actual and flexible budget : Using sales dollars as a basis for analysis, compute the variances between actual, flexible budget, and master budget for all costs including cost of sales.

Access and refer to the december : Access and refer to the December 31, 2011, annual report for KTM at www.KTM.com.

Explain changes to report that would make cost information : Identify and explain changes to the report that would make the cost information more meaningful to the production managers.

User Account

All Pages