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,...
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Harley-Davidson has its engine assembly plant in Milwaukee and
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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
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The automobile assembly plant you manage has a Cobb-Douglas
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year, x is the number of employees, and y is the
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A manufacturing company receives orders for engines from two
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Henry Ford paid the workers in his automobile assembly plant more than most employers at the...
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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
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(Enter your answer in...
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