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
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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
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A firm produces Planes and Boats using the same machines and
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TC = xH + yS - zHS
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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
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P =
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where P is the number of automobiles it produces per
year, x is the number of employees, and y is the
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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
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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
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How did Ford’s approach to employee relations impact employees?
Do you think it was to their advantage or disadvantage for 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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the line. The light bulbs are packed in boxes of 12, and the line
produces several thousand boxes of bulbs per day. To develop
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Boxes
0
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1
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2
3...
The ...Northwest ...Division of ...Kebalo Electric.. produces ..hydroelectric ...power. The power plant has seven machines that...
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..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
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You manage a pension fund that will provide retired workers with lifetime annuities. You determine that...
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How much market value of each of the zeros will be
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(Enter your answer in...
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