Question
In: Economics
Consider a company that assembles electric toasters using labor and robots. Suppose that in 1950, robots...
Consider a company that assembles electric toasters using labor and robots. Suppose that in 1950, robots were so crude that they were useless in the assembly of toasters, so that toasters had to be assembled entirely by hand. Draw an isoquant map illustrating this situation. Now suppose that as a result of progress in robot design and manufacture, robots can be used as a substitute for labor. Draw an illustrative isoquant map.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
1. a) Suppose a manufacturing company can use either Humans or Robots to produce output (Q)...
1. a) Suppose a manufacturing company can use either Humans or
Robots to produce output (Q) (consider Humans and Robots to be
substitutes). The Marginal Product of Humans is 10 units of output
per hour and the Marginal Product of Robots is 32.5 units of output
per hour. Humans cost $7 per hour and Robots cost $20 per hour.
What is the firm's Total Cost Function?
b) Suppose the firm is producing 50 units of
output. Using a graph, draw...
Suppose you are in the photocopying business, and are using labor (L) and capital (K), in...
Suppose you are in the photocopying business, and are using
labor (L) and capital (K), in the form of copy machines. You can
hire workers for $150 a week and lease copy machines for $300 a
week.
(a) Suppose your current total cost of production is $3,000. Use
the information above to depict the isocost you are currently
operating on, carefully labeling the relevant intercepts (put L on
the x-axis and K on the y-axis).
(b) You are producing 10,000...
5. You are using regression analysis to estimate the equity beta for an electric utility. Suppose...
5. You are using regression analysis to estimate the equity beta
for an electric utility. Suppose the risk-free rate of return is
zero, and you run the CAPM regression, obtaining a constant term
equal to 0.5 and a slope parameter equal to 0.8. Have you
implemented the CAPM regression correctly? Explain why or why
not.
Consider a country with 500 adult population in 2018. Suppose in the year 2018, the labor...
Consider a country with 500 adult population in 2018. Suppose in
the year 2018, the labor force
participation rate is unknown but the employment rate is 60%.
Suppose further that in the year 2019,
the labor force participation is 75%, and the employment rate is
80%. If the labor force participation
rate increased from 2018 to 2019 and the total number of people
unemployed remained the same, what
must be true of the total adult population size in 2019?
(a)...
Consider the Solow growth model with population growth and growth in the efficiency of labor. Suppose...
Consider the Solow growth model with population growth and
growth in the efficiency of labor. Suppose that 2 countries A and B
have the same production function given by Yt = Ktα(LtEt)1−α, the
same rate of growth of E (g), the same depreciation rate of
physical capital (δ) and the same saving rate s. The initial level
of E, E0, is lower in country A than in country B.
(a) Compare the steady-state levels of output per effective
worker of...
Kim Kwon Digital Components Company assembles circuit boards by using a manually operated machine to insert...
Kim Kwon Digital Components Company assembles circuit boards by
using a manually operated machine to insert electronic components.
The original cost of the machine is $90,100, the accumulated
depreciation is $36,000, its remaining useful life is five years,
and its residual value is negligible. On May 4 of the current year,
a proposal was made to replace the present manufacturing procedure
with a fully automatic machine that has a purchase price of
$187,400. The automatic machine has an estimated useful...
Boyer Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic...
Boyer Digital Components Company assembles circuit boards by
using a manually operated machine to insert electronic components.
The original cost of the machine is $82,900, the accumulated
depreciation is $33,200, its remaining useful life is five years,
and its residual value is negligible. On May 4 of the current year,
a proposal was made to replace the present manufacturing procedure
with a fully automatic machine that has a purchase price of
$172,400. The automatic machine has an estimated useful life...
Differential Analysis for Machine Replacement Kim Kwon Digital Components Company assembles circuit boards by using a...
Differential Analysis for Machine Replacement
Kim Kwon Digital Components Company assembles circuit boards by
using a manually operated machine to insert electronic components.
The original cost of the machine is $90,600, the accumulated
depreciation is $36,200, its remaining useful life is five years,
and its residual value is negligible. On May 4 of the current year,
a proposal was made to replace the present manufacturing procedure
with a fully automatic machine that has a purchase price of
$188,400. The automatic...
Differential Analysis for Machine Replacement Kim Kwon Digital Components Company assembles circuit boards by using a...
Differential Analysis for Machine Replacement
Kim Kwon Digital Components Company assembles circuit boards by
using a manually operated machine to insert electronic components.
The original cost of the machine is $68,700, the accumulated
depreciation is $27,500, its remaining useful life is five years,
and its residual value is negligible. On May 4 of the current year,
a proposal was made to replace the present manufacturing procedure
with a fully automatic machine that has a purchase price of
$142,900. The automatic...
Differential Analysis for Machine Replacement Kim Kwon Digital Components Company assembles circuit boards by using a...
Differential Analysis for Machine Replacement
Kim Kwon Digital Components Company assembles circuit boards by
using a manually operated machine to insert electronic components.
The original cost of the machine is $59,200, the accumulated
depreciation is $23,700, its remaining useful life is five years,
and its residual value is negligible. On May 4 of the current year,
a proposal was made to replace the present manufacturing procedure
with a fully automatic machine that has a purchase price of
$123,100. The automatic...
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