ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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6

Suppose the process of producing lightweight panas by Poly's Parkas is described by the
4-30-40
where is the number of parkas produced, Kthe number of computerized attching-machine
hours and the number of person-hours of labor. In addition to capital and labor $30 worth of
massed in the production of each parka
Note that
and
30(08XL-40) 0.20
By meaning ost subject to the production function, derive the cost minimizing demands for K
and Las a function of output ( wage rates (w), and rental rates on machines
The cost-minimizing
demands for K and L are
OA K=0.0440
OB K=0.0440
Oc. K=0.0110
K=0.0110
300-40
OD. K=0
0.2
02
0.8
0.8
+40 and L=0.0440
+40 and L 0.011g
and L 0.011q
and L=0.044q
OE none of the above.
Use these resus to derive the total cost function that comes
constant 530 per un
The total cost function (1)
OA TC-00540
OBTC-0.055 (+304
OCTC=0.055(w/92,
OP TC-000-40-30
OE none of the above
02
oc
08
0.2
+40
OA TC-31011640
OB TC-130 640
OC TC-10119-640
0070 31311
OF TC-310114
Does the Michnology exhibe decreasing, constant or increasing retums to scale?
The firm should use
worker hours
The fim should use
machu
What are the marginal and average costs at this level of producten?
Marginal cost is $ per unit of output
Average cos
This process requires odled workers, who eam $15 per hour. The rental rate on the machines
used in the process is $32 per hour At these factor prices, what are total costs as a function
of q
Totalcals (TC)
-40
w and the
This technology extr
Pully's Parka plan to produce 5000 parkas per weh. At the factor prices given above how
many workers should the tim hire and how many machines should it rent? (Enter your ramaining
respons rounded to two decimal places)
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Transcribed Image Text:Suppose the process of producing lightweight panas by Poly's Parkas is described by the 4-30-40 where is the number of parkas produced, Kthe number of computerized attching-machine hours and the number of person-hours of labor. In addition to capital and labor $30 worth of massed in the production of each parka Note that and 30(08XL-40) 0.20 By meaning ost subject to the production function, derive the cost minimizing demands for K and Las a function of output ( wage rates (w), and rental rates on machines The cost-minimizing demands for K and L are OA K=0.0440 OB K=0.0440 Oc. K=0.0110 K=0.0110 300-40 OD. K=0 0.2 02 0.8 0.8 +40 and L=0.0440 +40 and L 0.011g and L 0.011q and L=0.044q OE none of the above. Use these resus to derive the total cost function that comes constant 530 per un The total cost function (1) OA TC-00540 OBTC-0.055 (+304 OCTC=0.055(w/92, OP TC-000-40-30 OE none of the above 02 oc 08 0.2 +40 OA TC-31011640 OB TC-130 640 OC TC-10119-640 0070 31311 OF TC-310114 Does the Michnology exhibe decreasing, constant or increasing retums to scale? The firm should use worker hours The fim should use machu What are the marginal and average costs at this level of producten? Marginal cost is $ per unit of output Average cos This process requires odled workers, who eam $15 per hour. The rental rate on the machines used in the process is $32 per hour At these factor prices, what are total costs as a function of q Totalcals (TC) -40 w and the This technology extr Pully's Parka plan to produce 5000 parkas per weh. At the factor prices given above how many workers should the tim hire and how many machines should it rent? (Enter your ramaining respons rounded to two decimal places)
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