Question
In: Economics
Gren Plant Holdings farm manager argued that if he increased all four inputs on his farm...
- Gren Plant Holdings farm manager argued that if he increased all four inputs on his farm by 1 percent, output would increase by 1 percent. The extension worker argued that the elasticities of the output for each of the four inputs was less than one-fourth; therefore, he said that the farm managers output should increase by more than 1 percent. A graduate of University of Boston of Agriculture Economics sided with the extension worker because, she said …” My thesis research shows that the farm has a linearly homogenous production function.” This just added to the confusion. Can you straighten this out? Evaluate each of the three statements (by different people) with respect to their logical consistency. Given that the farms production function was homogenous of degree one, who was correct?
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
Exercise 6.8: The plant manager of manard Services has received five projects from his managers. He...
Exercise 6.8: The plant manager of manard Services has
received five projects from his managers.
He uses a
MARR of 9% to make project decisions. Find NPW, NFW, and EUAQ for
the projects.
Year
Project U
Project V
Project W
Project X
Project Y
0
($211,345)
($6,000)
($425,000)
($578,000)
($821,000)
1
$5,000
$1,500
$5,000
$85,000
$85,000
2
$8,800
$16,500
$13,800
$234,600
$85,000
3
$15,488
$18,150
$38,088
$647,496
$234,600
4
$27,259
$19,865
$44,182
$751,095
$272,136
5
$47,976
$21,862
$51,251
$871,271
$315,678...
Bob the Farmer grows vegetables at his farm in South Dakota. He grows his vegetables for...
Bob the Farmer grows vegetables at his farm in South Dakota. He
grows his vegetables for sale to food companies. On November 1, he
sells his vegetables to Granny’s Pie Company for $65,000, inclusive
of 13% VAT. Granny’s Pie Company uses his vegetables to produce
savory meat and vegetable pies (they’re huge in the UK). After the
production of the pies is complete, Granny’s Pie Company sells the
pies to Winn Dixie Grocery Stores for $140,000, inclusive of 13%
VAT....
Bob the Farmer grows vegetables at his farm in South Dakota. He grows his vegetables for...
Bob the Farmer grows vegetables at his farm in South Dakota. He
grows his vegetables for sale to food companies. On November 1, he
sells his vegetables to Granny’s Pie Company for $65,000, inclusive
of 13% VAT. Granny’s Pie Company uses his vegetables to produce
savory meat and vegetable pies (they’re huge in the UK). After the
production of the pies is complete, Granny’s Pie Company sells the
pies to Winn Dixie Grocery Stores for $140,000, inclusive of 13%
VAT....
The owner of a trout farm routinely measures the lengths of his trouts. He randomly took...
The owner of a trout farm routinely measures the lengths of his
trouts. He randomly took 31 trouts last Friday from his pond and
measured their lengths. The mean length was 26.1 centimeters with a
standard deviation of 1.8. Estimate the true mean length of all
trouts in his farm using a 90% confidence interval.
(a) The limits of the confidence interval are calculated by
x¯±tsn‾√x¯±tsn , where
x¯=
t= (Round to 3 decimal places.) Please explain how to find...
Billie Whitehorse, the plant manager of Travel Free’s Indiana plant, is responsible for all of that...
Billie Whitehorse, the plant manager of Travel Free’s Indiana
plant, is responsible for all of that plant’s costs other than her
own salary. The plant has two operating departments and one service
department. The camper and trailer operating departments
manufacture different products and have their own managers. The
office department, which Whitehorse also manages, provides services
equally to the two operating departments. A budget is prepared for
each operating department and the office department. The company’s
responsibility accounting system must...
Billie Whitehorse, the plant manager of Travel Free’s Indiana plant, is responsible for all of that...
Billie Whitehorse, the plant manager of Travel Free’s Indiana
plant, is responsible for all of that plant’s costs other than her
own salary. The plant has two operating departments and one service
department. The camper and trailer operating departments
manufacture different products and have their own managers. The
office department, which Whitehorse also manages, provides services
equally to the two operating departments. A budget is prepared for
each operating department and the office department. The company’s
responsibility accounting system must...
The plant manager of Spectra Products Manufacturing Plant has just reviewed a draft of his year-end...
The plant
manager of Spectra Products Manufacturing Plant has just reviewed a
draft of his year-end financial statements. The plant manager
receives a year-end bonus of 8% of the plant's operating income
before tax. The year-end income statement provided by the
controller was disappointing to say the least. After reviewing the
numbers, the plant manager demanded that his controller go back and
"work the numbers" again. He insisted that if he didn't see a
better operating income number the next...
(10 marks) A farmer has discovered that on his farm, he can get 30 bushels of...
A farmer has discovered that on his farm, he can get
30 bushels of corn per acre if he applies no fertilizer. When he
applies N pounds of fertilizer to an acre of land, the marginal
product of fertilizer is 1−N/200 bushels of corn per pound of
fertilizer.
(a) If the price of corn is $3 a bushel and the price of
fertilizer is $p per pound (where p < 3), how many pounds of
fertilizer should be use per...
George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he...
George Kyparisis makes bowling balls in his Miami plant. With
recent increases in his costs, he has a newfound interest in
efficiency. George is interested in determining the productivity of
his organization. He would like to know if his organization is
maintaining the manufacturing average of a 3% increase in
productivity. He has the following data representing a month from
last year and an equivalent month this year:
Last Year
Now
Cost Per Input Unit
Units Produced
1 comma...
A tornado struck the only manufacturing plant of Toledo Farm Implements (TFI) on June 1. All...
A tornado struck the only manufacturing plant of Toledo Farm
Implements (TFI) on June 1. All work-in-process inventory was
destroyed, but a few records were salvaged from the wreckage and
from the company’s headquarters. If acceptable documentation is
provided, the loss will be covered by insurance. The insurable
value of work-in-process inventory consists of direct materials,
direct labor, and applied overhead. The following information about
the plant appears on the April financial statements at the
company’s downtown headquarters.
Materials inventory,...
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