Reference no: EM13116128
Managerial Economics and Quantitative Analysis
QUESTION #1
After two quarters of increasing levels of production, the CEO of Canadian Fabrication & Design was upset to learn that, during this time of expansion, productivity of the newly hired sheet metal workers declined with each new worker hired. Believing that the new workers were either lazy or ineffectively supervised (or possible both), the CEO instructed the shop foreman to "crack down" on the new workers to bring their productivity levels up.
a) Explain carefully in terms of production theory why it might be that no amount of "cracking down" can increase worker productivity at Canadian Fabrication & Design?
b) Provide an alternative to cracking down as a means of increasing the productivity of the sheet metal workers.
QUESTION #2
Dimex Fabrication Company, a small manufacturer of sheet-metal body parts for a major U.S automaker, estimates its long-run production function to be:
Q = -0.015625K3L3 + 10K2L2
Where "Q" is the number of body parts produced daily, "K" is the number of sheet-metal presses in its manufacturing plant, and "L" is the number of labor-hours per day of sheet-metal workers employed by Dimex. Dimex is currently operating with eight sheet-metal presses.
a) What is the total product function for Dimex? The average product function? The marginal product function?
b) Managers at Dimex can expect the marginal product of additional workers to fall beyond what level of labor employment?
c) Dimex plans to employ 50 workers. Calculate the total product, average product and marginal product.
QUESTION #3
Suppose your company produces one product and that you are currently at an output level where your price elasticity is 0.5. Are you at the optimal output level for profit maximization? How can you tell?
|
Compounding interest-amount of payments
: The first payment will be due in 6 months, the second in 18 months and the third in 30 months. What is the size of these payments if money is worth 10% compounded quarterly and a focal date of 18 months is used for evaluation purposes?
|
|
Find correlation coefficient between the two variable
: (12,50), (6, 36), (20,60), (5,24), (38,70), (3,24), (8, 42), (20,65), (10, 40), (15, 60). Your best guess of the correlation coefficient between the two variables is?
|
|
Mortgage-interest and amortization
: A house worth $70,000 is purchased with a down payment of $20,000 and a mortgage amortized over 20 years. If the interest rate is 14% compounded semi- annually;
|
|
Find out the centripetal force experienced by the ball
: If the string makes an angle of 29? with the vertical, find out the centripetal force experienced by the ball. The acceleration of gravity is 9.8 m/s2 .
|
|
What is the total product function for dimex
: Explain carefully in terms of production theory why it might be that no amount of "cracking down" can increase worker productivity at Canadian Fabrication & Design?
|
|
Application of linear eqautions
: An art dealer sold two artworks at $1520 thereby making a profit of 25% on the first work and 10% on the second, where as if he had approached any exhibition he would have sold them together for $1535 with a profit of 10% on the first and 25% on t..
|
|
What is the minimum amount of ethanol needed
: The solubility of compound A in ethanol is 0.80g per 100.0mL at 0oC and 5.00g per 100.0mL at 78oC. What is the minimum amount of ethanol needed to recrystallize a 12.00g sample of compound A.
|
|
Find books tested to estimate to break the binding
: How many books should be tested to estimate with 95% to within 0.1 lb, the average force required to break the binding? Assume that sd is known to be 0.8 lb.
|
|
Illustrate what is the tension in the cable nearest the work
: A window washer of mass 86 kg stands at a distance d from the midpoint of the scaffold. The tension in the cable nearest the worker is twice the tension in the other. Illustrate what is the tension in the cable nearest the worker? What is the tens..
|