Reference no: EM131085129
A firm plans to produce 1,000 units per day of good X. The firm’s production engineer finds two technically efficient processes (i.e., input combinations of labor and capital) to produce 1,000 units per day:
Process 1 Process 2
Labor 10 8
Capital 20 25
a. If the production function for the existing technology is Q = f(L, K), where Q is the maximum possible output, L is the amount of labor used, and K is the amount of capital used, then f(10, 20) =__________ and f(8, 25) = ____________.
b. If the firm must pay $200 per day for a unit of labor and $100 per day for a unit of capital, which process is economically efficient?
c. If the firm must pay $250 per day for a unit of labor and $75 per day for a unit of capital, which process is economically efficient?
d. “No matter what input prices prevail, as long as the firm employs either process 1 or process 2 it will be technically efficient.” Evaluate this statement.
|
Wound for four poles
: A three-phase induction motor is wound for four poles and is supplied from a 50 Hz system. Calculate:
|
|
Money supply-velocity-the price level and real output
: The equation of exchange is an identity that relates the money supply, velocity, the price level, and real output. An identity is something that is true by definition.
|
|
Costs as either variable-fixed or quasi-fixed cost
: Jetways Airline flies passengers between New York and Miami, making one round-trip daily using a leased Boeing 737 aircraft. Consider the number of passengers served daily as the output for the airline. Identify each of the following costs as either ..
|
|
Calculate the voltage regulation for a load
: A three-phase, 600 MVA generator has a rated terminal voltage of 22 kV (line). The stator winding is star-connected and has a resistance of 0.014 Ω/phase and a synchronous impedance of 0.16 Ω/phase. Calculate the voltage regulation for a load havi..
|
|
Which process is economically efficient
: A firm plans to produce 1,000 units per day of good X. The firm’s production engineer finds two technically efficient processes (i.e., input combinations of labor and capital) to produce 1,000 units per day: If the firm must pay $200 per day for a un..
|
|
Phase voltage and the line voltage
: If the supply frequency is 50 Hz and the line current is 3 A determine (a) the phase voltage and (b) the line voltage.
|
|
Planning and controlling-making the right decisions on time
: There is a new small entrepreneurial solar power business in town. In today’s competitive environment, partners are struggling with a series of management and environmental issues. For example; finding the right target market that would respond the b..
|
|
Core of non-magnetic material
: A coil of 300 turns, wound on a core of non-magnetic material, has an inductance of 10 mH. Calculate: (a) the flux produced by a current of 5 A;
|
|
Levied on groceries or meals at fancy restaurants
: Would the DWL of a tax be larger if the tax (assuming the same size of tax per unit of product) were levied on groceries or meals at fancy restaurants? ? In order to minimize the DWL of a tax, should the government levy tax on groceries or meals at f..
|