Reference no: EM13921625
Suppose the production function of PowerGuns Co. is given by Q = 25LK
where Q is the quantity of guns produced in the month, L is the number of workers em- ployed, and K is the number of machines used in the production. The monthly wage rate is $3,000 per worker and the monthly rental rate for a machine is $6,000. Currently PowerGuns Co. employs 25 workers and 40 machines. Assume perfect divisibility of labor and machines.
a. What is the current average product of labor for PowerGuns Co.? What is the current marginal product of machines? (Assume 1 unit increase in machines.)
b. Does PowerGuns' production function display increasing, decreasing, or constant returns to scale? Explain.
c. What is the total cost of the current production of PowerGuns in a month? What is the average cost to produce a shooting gun? Assuming the number of machines does not change, what is the marginal cost of producing one additional gun?
d. What is the law of diminishing returns? Does this production display this characteristic? Explain.
|
How chiropractors cure headaches
: Choose a specific issue from a career of interest (how chiropractors cure headaches). The purpose is to explore the issue and incorporate 4 reliable sources using MLA format
|
|
Prepare the necessary adjusting entry
: During the year, Able Co. purchased $39,600 worth of supplies, at the end of the year, the balance sheet showed a balance of $1,760 in the supplies account. Prepare the necessary adjusting entry.
|
|
Calculate the range of opportunity costs of capital
: The Titanic Shipbuilding Company has a noncancelable contract to build a small cargo vessel. Construction involves a cash outlay of $259,000 at the end of each of the next two years. Use the IRR rule to calculate the (approximate) range of opportunit..
|
|
Monopoly rights through the political process
: Question 1 When resources are used to secure monopoly rights through the political process: Question 2 Refer to the accompanying table, which represents the costs and production for a monopolist, to answer the questions that follow. The profit made..
|
|
What is current average product of labor for powerguns co
: What is the current average product of labor for PowerGuns Co.? What is the current marginal product of machines? (Assume 1 unit increase in machines.)
|
|
Assume that all interim entries were correctly recorded
: On January 1, 2018, Laird Corp. called the bonds. Assume that all interim entries were correctly recorded.
|
|
Insured personal casualty losses
: insured personal casualty losses (arising from one casualty). Wally also had $42,000 AGI for the year before considering the casualty.
|
|
Perfectly competitive industries advertise
: Question 1 Why would perfectly competitive industries advertise even though individual firms do not? Question 2 We could state correctly that the minimum characteristic necessary to distinguish among pricemaking firms is:
|
|
Discuss the meaning of perfect competition
: Discuss the meaning of perfect competition. Analyse the conditions in which the firm and the industry will be in equilibrium in the short and long run under perfect competition.
|