User Account

All Pages

What is the total cost of producing 1000 sneakers

Assignment Help Business Management
Reference no: EM131258621

Nike produces its sneakers using labor (L) and capital (K). Nike has the following production function Q = 50K1/5L1/4. The wage rate (PL) is $2 and the price of capital (PK) is $5. Nike wants to produce 1000 sneakers at the lowest possible cost.

(a) Use the Lagrangian Method to find the cost-minimizing quantity of capital and labor to produce 1000sneakers? Round your answers to two decimal places. Assume Nike uses fractional inputs.

(b) What is the total cost of producing 1000 sneakers?

(c) Calculate λ. What is the economic interpretation of this value?

(d) Suppose that the price of labor doubles to PL = $4. Assume all other variables are held constant.Find the new cost-minimizing quantity of capital and labor.

Reference no: EM131258621

Questions Cloud

Combatting global warming : How has economics been used recently to assist in combatting global warming (via increasing renewable energy use, etc)?
Find the firm fixed costs : Melody Music Store has a total cost function of TC = 500 + 10Q + 5Q^2 (a) Find the firm's fixed costs (FC) and variable costs (VC). (b) Find the firm's average fixed cost (AFC), average variable cost (AVC), and average total cost (ATC
Describe your unique selling proposition : Brielf describe two (2) products (goods or services) offered at a business you are familiar with. Next, identify two (2) major competitors and describe the two (2) products they offer that compete with yours.
Describe some ramifications of the bullwhip effect : Describe some ramifications of the bullwhip effect ? Describe causes of the bullwhip effect and their associated remedies.
What is the total cost of producing 1000 sneakers : (a) Use the Lagrangian Method to find the cost-minimizing quantity of capital and labor to produce 1000sneakers? Round your answers to two decimal places. Assume Nike uses fractional inputs. (b) What is the total cost of producing 1000 sneakers?..
How bullwhip measure can be used to analyze supply chains : Describe how the bullwhip measure can be used to analyze supply chains? - Describe some potentially useful categories to include in a factor-weighting analysis for supplier selection?
Do you think that most companies take this slower approach : Do you think that most companies take this slower approach, or are more anxious to get into the market? Please find some examples.
Derive an equation for the isocost line : A firm uses labor (L) and machines (K) to produce some output. The cost of labor is $40 per unit and the cost of using a machine is $10. (a) Derive an equation for the isocost line.
Estimate its soil-water partition coefficient normalized : Naphthalene has a log Kow of 3.36. Estimate its soil-water partition coef-ficient normalized to organic carbon and also the 95% confidence interval of your estimate.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd