How is mrp computed, How is MRP computed

How is mrp computed

Reference no: EM13797086

Sullivan's Custom Cabinets operate in a perfectly competitive market and employs labor and capital. Labor costs $30 a day. Machines cost $36 a day. Currently, Sullivan's has six machines and the marginal revenue product of capital is $30. Output sells at $5 per unit. Sullivan's hires you as a consultant and provides you with the following production function.

Workers (days)	Total Output
1	9
2	17
3	24
4	30
5	35
6	39
7	42

Explain, in your own words, the meaning of MRP.
How is MRP computed?
Using the data presented, in the short run, how many workers would you recommend Sullivan's hire per day to maximize profits?
Explain how you arrived at this number.

Reference no: EM13797086

Questions Cloud

Different regression equations is their respective values : In essence, do you agree with each statement? Explain why or why not? The best test of the performance of two different regression equations is their respective values of the coefficient of determinations.

Relationships describe the economy of a random : The following relationships describe the economy of a random, fictitous country: Sketch the IS curve and LM curve for 1998 on a diagram and show the point where the interest rate and output are determined. Show what happens in the diagram if the mone..

Terms of cost, affordability, access, quality and safety : Analyze what the literature says about the impact of the policy, in terms of cost, affordability, access, quality, and safety.

Prison informants form the inmate population. : How should you continue to handle this inmate's reported intelligence information, and why?

How is mrp computed : How is MRP computed - Using the data presented, in the short run, how many workers would you recommend Sullivan's hire per day to maximize profits - how many workers would you recommend Sullivan's hire per day to maximize profits?

The business of healthcare and the use of resources : What the impact of this disease on society is, as it relates to the business of healthcare and the use of resources.

Determine the percent error of the three transitions : Determine three transitions from the energy level handout and compare to the JPL database. Determine the percent error of the three transitions

Remotely operated vehicles (rovs) and human occupied vehicle : What are some of the differences between ROVs? What are some of the differences between HOVs? How do these differences affect their use?

Process designs and supply chains : Create an MS PowerPoint Presentation in which you evaluate the current state of the process you selected in Week Two and summarize the proposed future state.

User Account

All Pages