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ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Refer to the table below. Assume that the company involved now finds that the learning rate is 71 percent. The 71 percent learning rate coefficient is −0.494109; that is b = −0.494109 in the formula Y = aXb.
Required: Using the formula, Y = aXb, compute the labor time and costs for 5, 6, and 7 units. (Round your intermediate calculations (except for coefficient) and final answers to 2 decimal places.)
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- c) The product function of a company is given by 1 v2 , where v is the number of units of fv) = the input factor. The company buys the input factor at a fixed price per unit given at 5 q =. Assume further that the company has fixed costs which in their entirety are sunk costs, and which is given by F= 100 . Show that the company's cost function is CO 20= y? +100 . d) Take as a starting point the information given in task (c), and assume that the company can sell finished goods in the market at a fixed price given by = 800 Formulate the company's profit function, and calculate which production volume maximizes corporate profits.arrow_forwardDuring the last few days the Superior Company has been running into problems with its computer system. The last run of the production cost schedule resulted in the incomplete listing shown below (listed as question numbers). From your knowledge of cost theory, solve for the values in the table to the corresponding questions below. Q TC TFC TVC ATC AFC MC 75 75 1 A 75 100 75 2 75 C 37.5 15 TC = total costs, TFC = total fixed costs, TVC = total variable costs, ATC = average total costs, AFC = average fixed costs, AVC = average variable costs, MC = marginal costs %3D What is the correct numerical value for A in the table? 100 O 75 O 200arrow_forwardBased on the graph below, how much is the marginal product of labour of the sixth worker, if Q5=67 units per period and Q6=88. Q in Units/period Q6 Q5 6. Lin Workers/period Ca15 units per peciodarrow_forward
- Assume a firms production function depends on labour hours (L) only and is given by F(L) = 5L0.8 Assume the hourly wage is $40. Then, the cost of producing 50 units, rounded to the nearest integer, is: 711 1134 541 112 1000 801 854arrow_forward8 The cost of lumber per million board feet (MBF) in January 2007 was $464.49 when the value of the ENR materials cost index (MCI) was 2583.52. If the cost of lumber increased in proportion to the MCI, what was the value of the index when the cost of lumber was $400 per MBF?arrow_forward
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