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Two machining operations, A (3 minutes per part) and B (10 minutes per part), are performed sequentially to manufacture a part. Machines A and B produce 5% and 6% defective items, respectively. The factory operates 8 hours each day, 5 days per week, 4.2 weeks per month. Every day each machine needs 0.30 hour for being set up. Find the machine fraction for each type (A and B) if we need to handle a demand of 1000 items per month. Use a machine-up factor equal to 85% for each machine.
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Assume the production function for a rm is given by the equation Q = L √K. Graph the isoquants corresponding to Q = 10, Q = 20, and Q = 50. Do these isoquants exhibit diminishing
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