Question
In: Economics
You manage a plant that mass-produces engines by teams of workers using assembly machines. The technology...
You manage a plant that mass-produces engines by teams of workers using assembly machines. The technology is summarized by the production function q=5KL
where q is the number of engines per week, K is the number of assembly machines, and L is the number of labor teams. Each assembly machine rents for r=$40,000 per week, and each team costs w=$5,000 per week. Engine costs are given by the cost of labor teams and machines, plus $4,000 per engine for raw materials. Your plant has a fixed installation of 5 assembly machines as part of its design.
a. How many teams are required to produce 100 engines? To produce 100 engines, ____labor team(s) are required.
b. You are asked to make recommendations for the design of a new production facility. What capital/labor (K/L) ratio should the new plant accommodate if it wants to minimize the total cost of producing at any level of output q?
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
You manage a plant that mass produces engines by teams of workers using assembly machines. The...
You manage a plant that mass produces engines by teams of
workers using assembly machines. The technology is summarized by
the production function Q = 5KL where Q is the number of engines
per week, K is the number of assembly machines, and L is the number
of labor teams. Each assembly machine rents for r = $10,000 per
week and each team costs w= $5,000 per week. Engine costs are given
by the cost of labor teams and machines,...
Harley-Davidson has its engine assembly plant in Milwaukee and its motorcycle assembly plant in Pennsylvania. Engines...
Harley-Davidson has its engine assembly plant in Milwaukee and
its motorcycle assembly plant in Pennsylvania. Engines are
transported between the two plants using trucks, with each trip
costing $800. The motorcycle plant assembles and sells 450
motorcycles each day. Each engine costs $600, and Harley incurs a
holding cost of 20% per year. Assume that Harley has 365 operating
days. a) How many engines should Harley load onto each truck? What
is the cycle inventory of engines at Harley? b)...
Harley-Davidson has its engine assembly plant in Milwaukee and its motorcycle assembly plant in Pennsylvania. Engines...
Harley-Davidson has its engine assembly plant in Milwaukee and
its motorcycle assembly plant in Pennsylvania. Engines are
transported between the two plants using trucks, with each trip
costing $1,000. The motorcycle plant assembles and sells 300
motorcycles each day. Each engine costs $500; Harley incurs a
holding cost of 20 percent per year. How many engines should Harley
load onto each truck? That is the Total Inventory Cost? What is the
Annual Ordering Cost? What is the Annnual Holding Cost...
A firm produces Planes and Boats using the same machines and workers. The multi product total...
A firm produces Planes and Boats using the same machines and
workers. The multi product total cost of producing Planes units
H and Boats units S is given by
TC = xH + yS - zHS
where x, y, and z are positive.
What is the marginal cost of Planes? Boats?
Does this multi-product cost equation exhibit economies or
diseconomies of scale? How about economies or diseconomies of
scope?
The automobile assembly plant you manage has a Cobb-Douglas production function given by P = 30x0.5y0.5...
The automobile assembly plant you manage has a Cobb-Douglas
production function given by
P =
30x0.5y0.5
where P is the number of automobiles it produces per
year, x is the number of employees, and y is the
daily operating budget (in dollars). Assume that you maintain a
constant work force of 120workers and wish to increase production
in order to meet a demand that is increasing by 60 automobiles per
year. The current demand is 800 automobiles per year. How...
A manufacturing company receives orders for engines from two assembly plants. Plant I needs at least...
A manufacturing company receives orders for engines from two
assembly plants. Plant I needs at least 45 engines, and plant II
needs at least 32 engines. The company can send at most 140engines
to these assembly plants. It costs $30 per engine to ship to plant
I and $40 per engine to ship to plant II. Plant I gives the
manufacturing company $20 in rebates toward its products for each
engine they buy, while plant II gives similar $10 rebates....
Henry Ford paid the workers in his automobile assembly plant more than most employers at the...
Henry Ford paid the workers in his automobile assembly plant
more than most employers at the time. He also took an interest in
their well-being outside of work. Agents helped workers organize
their homes, manage their debt, and buy homes.
How did Ford’s approach to employee relations impact employees?
Do you think it was to their advantage or disadvantage for the
company to take such an active interest in their lives? If you were
running a company, what practices of...
A plant manager is interested in developing a quality-control program for an assembly line that produces...
A plant manager is interested in developing a quality-control
program for an assembly line that produces light bulbs. To do so,
the manager considers the quality of the products that come from
the line. The light bulbs are packed in boxes of 12, and the line
produces several thousand boxes of bulbs per day. To develop
baseline data, workers test all the bulbs in 100 boxes. They obtain
the following results:
Defective Bulbs/Box
Boxes
0
68
1
27
2
3...
The ...Northwest ...Division of ...Kebalo Electric.. produces ..hydroelectric ...power. The power plant has seven machines that...
The ...Northwest ...Division of ...Kebalo Electric.. produces
..hydroelectric ...power. The power
plant has seven machines that can harvest hydroelectric power on
a continuous
process such that the capacity of the plant is 5,000 machine
hours per month. The
plant produces three types of electric power. Energy type
"Standard" is not easily
stored, energy type "Super" is easier to store and send to more
remote regions, and
energy type "Bad" has no external market. However, energy type
"Bad" is easily
transferred...
You manage a pension fund that will provide retired workers with lifetime annuities. You determine that...
You manage a pension fund that will provide retired workers with
lifetime annuities. You determine that the payouts of the fund are
essentially going to resemble level perpetuities of $4 million per
year. The interest rate is 10%. You plan to fully fund the
obligation using 5-year and 15-year maturity zero-coupon bonds.
Requirement 1:
How much market value of each of the zeros will be
necessary to fund the plan if you desire an immunized position?
(Enter your answer in...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- You are tasked with assessing the health department’s intervention program in preventing recurrence of acute alcohol...
- Compare the MOSFET, JFET , and BJT and identify the reasons these devices behave differently. What...
- How would you use SAS Enterprise Miner to create a neural network model of your example?
- Explain the use of neural networking modeling in predictive analytics.
- Current Market Mix of Netflix, as detail as possible, please.
- This is all one question, thank you so much in advance! You must evaluate a proposal...
- X Company is considering the purchase of a new processor that costs $200,000. Shipping and setup...
ADVERTISEMENT