Question

On a monthly basis when a factory employs L worker-hours of
labor, they can produce Q(L) = 7L + 40L^{1/6 - 1} scooters.
An investment in labor of K dollars gives them an employment level
of L(K) = 0.055K - 12,500/K worker-hours.

a. The factory currently invests 2,000 dollars in labor. At what rate is the number of scooters being produced changing with respect to the amount they invest in labor. Round your final answer in 2 decimal places and include units with your answer.

b. How many scooters are they producing when they invest 2,000 dollars in labor? Round your final answer to the nearest whole number and include units with your answer.

Answer #1

3. A firm employs labor and capital by paying $40 per unit of
labor employed and $200 per hour to rent a unit of capital. The
production function is given by: Q = 120L – 2L2 + 240K – 3K2, where
Q is total output.
a. At what level of labor (L) and capital (K) will output no
longer increase (the maximum number to labor and capital that a
firm would ever employ)?
b. Determine the firm’s optimal combination or...

Suppose that the output Q (in units) of a certain
company is
Q =
75K1/3L2/3,
where K is the capital expenditures in thousands of
dollars and L is the number of labor hours.
Find ?Q/?K when capital expenditures are $343,000
and the labor hours total 8000. (Round your answer to the nearest
whole number.)
?Q/?K = thousand units per
thousand dollars
Interpret ?Q/?K.
If labor hours remain at 8000 and K increases by $1000,
Q will increase about ____ thousand units....

The management of a factory finds that the maximum number of
units a worker can produce in a day is 30. The learning curve for
the number of units N produced per day after a new employee has
worked for t days is modeled by N = 30 1 − ekt . After 19 days on
the job, a worker is producing 18 units in a day. How many days
should pass before this worker is producing 25 units per...

1. A firm production function is given by q(l,k) =
l0.5·k0.5, where q is number of units of
output produced, l the number of units of labor input used and k
the number of units of capital input used. This firm profit
function is π = p·q(l,k) – w·l – v·k, where p is the price of
output, w the wage rate of labor and v the rental rate of capital.
In the short-run, k = 100. This firm hires...

At the beginning of the period, the Cutting Department budgeted
direct labor of $128,000, direct materials of $153,000 and fixed
factory overhead of $10,500 for 7,600 hours of production. The
department actually completed 10,400 hours of production. What is
the appropriate total budget for the department, assuming it uses
flexible budgeting?
Round your final answer to the nearest dollar. Do not round
interim calculations.
a.$295,368
b.$395,026
c.$291,500
d.$398,895
Production and sales estimates for March for the Robin Co. are
as...

Fancy Millwork has a factory that produces custom kitchen
cabinets. It has multiple product lines. Materials and labor for
the cabinets are determined by each job. To simplify the
assignment, we will assume the following average costs. The company
estimates that it will have 32,000 direct labor hours in total for
the kitchen cabinets. The materials include $2,000 for the wood and
other materials on a per job basis. It requires 40 hours of labor
on average for a custom...

Four Case Studies on Corporate Social Responsibility: Do
Conflict Affect a Company's Corporate Social Responsibility: Apple
Inc.
Apple’s profile
Apple Inc. (hereafter Apple) was established in 1977 and is
registered on the NASDAQ Global Select Market exchange. According
to its Form 10-K ‘Apple designs, manufactures and markets mobile
communications, media devices, personal computers and portable
digital music players, and sells a variety of related software,
services, peripherals, networking solutions, and third-party
digital content and applications’. Its products are sold through...

How can differential analysis be applied here to
determine if it would be profitable to invest in new equipment to
increase capacity for a constrained resource?
KRAYDEN’S CYCLE COMPONENTS INTRODUCTION: COMPANY, PRODUCT, AND
SUPPLY CHAIN
Krayden’s Cycle Components (KCC) is a high-end specialty
fabricator that manufactures one product with many variants. The
basic product is known as a rolling chassis, a key component used
in manufacturing motorcycles. While there are variations across the
industry, a rolling chassis typically consists of...

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