Question

Consider an ice cream company with two stores. Each store has the same production function 2L^(0.5)*...

Consider an ice cream company with two stores. Each store has the same production function 2L^(0.5)* K^(0.5), where K is the number of ice cream machines and L is the number of workers. Store 1 has 4 machines, whereas Store 2 has I machine. a) If the ice cream company employs 20 workers then how many should it employ at each shop? b) Is it better to employ another worker, or purchase another ice cream machine for Store 2? Assume labour, capital, and output are perfectly divisible

Homework Answers

Answer #1

Please ask your query if any in comment.

PLEASE RATE THUMBS UP ??

THANKYOU


Please don't dislike the answer, feel free to ask your query if any in comment.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A firm has the following production function: q=5LK^0.5+2L^2K-L^3K What is its short-run production function if capital...
A firm has the following production function: q=5LK^0.5+2L^2K-L^3K What is its short-run production function if capital is fixed at K=9? What are the firm’s marginal product of labour and average product of labour in the short run? Show that the firm’s elasticity of output with respect to labour in the short run is a function of marginal product of labour and average product of labour. Calculate the short-run elasticity of output with respect to labour
2.   Bridgestone Company has the following production function for tires: Q = 20 K 0.2 L...
2.   Bridgestone Company has the following production function for tires: Q = 20 K 0.2 L 0.8, where K represents machine hours and L represents labor hours. They pay $ 15 per hour to rent their machines and $ 10 per hour to their workers. They have $ 12,000 to spend on capital and labor. A. Does this production function exhibit constant, increasing, or decreasing returns to scale? B. Does this production function exhibit diminishing marginal returns to capital and...
The Nataraj Metal Products Company (hereinafter referred to as the Nataraj), has it manufacturing plant at...
The Nataraj Metal Products Company (hereinafter referred to as the Nataraj), has it manufacturing plant at Arani and employs about 500 workers. It produces a variety of metal products such as brass knobs, steel frames, collapsible iron gates, chromium handles and so on. Orders for these are placed by building contractors in and around Madras but the volume of orders fluctuates, with the rainy season being the slowest period. The company is reputed for quality products delivered on time and...
The Boeing Company, headquartered in Chicago, Illinois, is one of the two major producers of aircraft...
The Boeing Company, headquartered in Chicago, Illinois, is one of the two major producers of aircraft in the global market. The other major producer is European Airbus. Boeing produces three models in Everett, Washington: 747s, 767s, and 777s. The planes are all produced in the same building. At any one time, there may be as many as six planes in various stages of production. Obviously the building has to be fairly large to accommodate such a huge undertaking. In fact,...
Chick-fil-A is dominating the U.S. fast-food market. Whereas McDonald’s, Subway, Burger King, and Taco Bell trudge...
Chick-fil-A is dominating the U.S. fast-food market. Whereas McDonald’s, Subway, Burger King, and Taco Bell trudge along at the top of the heap, Chick-fil-A has quietly risen from a South- east regional favorite to become the largest chicken chain and the eighth-largest quick-service food purveyor in the country. The chain sells significantly more food per restaurant than any of its competitors—twice that of Taco Bell or Wendy’s and more than three times what the KFC Colonel fries up. And it...
Analysis: This section should include the issue register as a bare minimum, but may include also...
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...
Amazon CEO Jeff Bezos’ 2020 letter to shareholders details the company’s plans to combat the coronavirus...
Amazon CEO Jeff Bezos’ 2020 letter to shareholders details the company’s plans to combat the coronavirus Amazon CEO Jeff Bezos just published his annual letter to shareholders, and the efforts his company is taking to address the COVID-19 crisis were front and center. He outlined the company’s plans to build a lab to test employees and the social distancing measures its implemented in its facilities among other initiatives. Other than the coronavirus pandemic, Bezos also discussed the retail giant’s efforts...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT