How does this alter the isocost and isoquant graph

Assignment Help Business Economics

Reference no: EM13149351

You need to expand production, either in the US or in China. Currently, your average American workers produce 100 units per hour and Chinese workers produce only 16 units per hour. But your American workers will cost you $20 per hour and your Chinese workers cost you $3 per hour. a.Graph as much this information as possible as isocost and isoquant information. b.Where should you expand production? c.Looking ahead into the near future, you forecast that your American workers will cost you $25 per hour, but demand for labor in China will drive up costs per worker there to $5 per hour. How does this alter the isocost and isoquant graph? d.Given these forecasts, where should you expand production?

Reference no: EM13149351

Questions Cloud

Financial statement presentations relating to contract : The income to be recognized each year is based on the proportion of costs incurred to total estimated costs for completing the contract. The financial statement presentations relating to this contract at December 31, 2010, follow:

Indifference curve analysis to explain : How do you use indifference curve analysis to explain the price ; income and substitution effects and to demonstrate the delegation of the demand curve for different types of goods

Find minimum number of attendance days to receive discount : Students that are in the top 5% will receive a 20% off coupon at the "Crazy" cafeteria. What is the minimum number of attendance days that you should have in order to receive such discount?"

Target cost for the new price : What is the target cost for the new price if target operating income is 20% of sales. What is the change in operating income for the year if $18.00 is the new price and costs remain the same?

How does this alter the isocost and isoquant graph : demand for labor in China will drive up costs per worker there to $5 per hour. How does this alter the isocost and isoquant graph? d.Given these forecasts, where should you expand production?

Explain a system comprised of chloroform : A system comprised of chloroform, 1,4-dioxane, and ethanol exists as a two-phase vapor/liquid system at 50 degrees C and 55 kPa.

What level of protein structure must an enzyme have : What level of protein structure must an enzyme have to be regulated allosterically? Please provide an explanation for your answer.

Basics of determining operating profit : A firm operated at 90% of capacity for the past year, during which fixed costs were $320,000, variable costs were 60% of sales, and sales were $1,000,000. Operating profit was:

Evaluate the institutionalist economists : Evaluate the institutionalist economists. Determine which economist you feel made the most significant contribution to economic theory. Justify your selection.

User Account

All Pages