Question

Question 2 (Technology). A local factory making greeting cards employs only workers and machines. Let x1 represent workers and x2 represent machines. The firm’s production function is: f(x_1, x_2)=10*min(x_1, 1/2x_2)

a) Draw an isoquant representing a quantity of 100 units and an isoquant representing a quantity of 200 units. Label two points on each isoquant.

b) Suppose the firm wants to produce 300 cards. The price of an hour of labor is $20 and the price of a machine hour is $30 per hour. What will be the firm’s costs?

c) Suppose you notice the firm is using 45 worker hours and 100 machine hours. What could you recommend to the firm in order for them to decrease costs without decreasing output? How much money would you save the firm?

Answer #1

LeBron
Factory
Number
of
Workers
Number
of
Machines
Output
(chairs
produced
per hour)
Marginal
Product of
Labor
Cost of
Workers
Cost of
Machines
Total
Cost
?1
?2
?5
?2
?2
?10
?3
?2
?20
?4
?2
?35
?5
?2
?55
?6
?2
?70
?7
?2
?80
Refer to Table above.
First, complete the missing information in the Table
above.
1.Each worker at the
LeBron Chair Factory costs $12 per hour. The cost of each machine
is $20 per day regardless...

1. In the short run, the firm ________ change the number of
workers it employs but ________ change the size of its plant.
A) can; can B) can; cannot C) cannot; can D) cannot; cannot
2.Jill runs a factory that makes lie detectors in Little Rock,
Arkansas. This month, Jill's 34 workers produced 690 machines.
Suppose Jill adds one more worker and, as a result, her factory's
output increases to 700. Jill's marginal product of labor from the
last worker...

Question 2 A car engine manufacturer has the
following production goals for the next year:
Engine
Quantity
Machine Req’s
V6
2000
6hrs
V8
1500
10hrs
V12
100
20hrs
If all three engines can be produced by the same machines and
each of the manufacturer’s machines operate for 2400 hours per
year, how many machines are required for the above product mix?
Question 3
A manufacturing operation has three stages:
•Stage 1 Capacity: 400 units/hr
•Stage 2 Capacity: 300 units/hr
•Stage...

1) Xavier opens up a lemonade stand for two hours. He spends $10
for ingredients and sells $60 worth of lemonade. In the same two
hours, he could have mowed his neighbor’s lawn for $40.
What is Xavier’s accounting profit?
What is Xavier’s economic profit?
2) A commercial fisherman notices the following relationship
between hours spent fishing and the quantity of fish caught:
Hours
Quantity of fish (in
pounds)
0
10
18
24
28
30
What...

Analysis: This section should include the issue register as a
bare minimum, but may include also why-why diagrams, a Pareto
chart, a waste table and/or value-added analysis table. Flow
analysis or simulation of this case study might be possible but
might require making a lot of assumptions given the provided
data.
The first part of the project:
Introduction
Walmart has continued to retain
the top position on the Fortune 500 list for a consecutive fifth
year. The brand has...

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