Question
In: Economics
A firm produces a soft drink using two ingredients, sugar (S) and bubbly water (B) in...
A firm produces a soft drink using two ingredients, sugar (S) and bubbly water (B) in fixed proportions: 6 tablespoons of sugar per 12 oz of bubbly water.
a)What is the production function?
b)Does this production function exhibit constant, increasing, or decreasing returns to scale?
c)Write down the firm’s cost minimization problem and solve for the conditional factor demands.
Solutions
Expert Solution
A conditional
factor demand is the cost-minimizing level
of an input (factor of production) such as labor or
capital, required to produce a given level of
output, for given unit input costs (wage
rate and cost of capital) of the input factors.
Rahul Sunny answered 2 years agoRelated Solutions
Explain the difference between a soft drink containing sugar and a diet soft drink, in terms...
Explain the difference between a soft drink containing sugar and
a diet soft drink, in terms of density and concentration.
A small soft drinks company produces only two types of drink, Awefull (A) and Burpit (B)....
A small soft drinks company produces only two types of
drink, Awefull (A) and Burpit (B). The production manager
is concerned to get the best use of the bottling machinery at her
disposal, and has asked you to investigate the problem.
Essentially, the bottling process involves washing, filling and
capping. One bottle of Awefull takes an average of
0.8 seconds to wash, 0.9
seconds to fill and 1 second to cap. A
bottle of Burpit requires 1.2 seconds to wash,...
Thornton Cola Corporation produces a new soft drink brand, Sweet Spring, using two production departments: mixing...
Thornton Cola Corporation produces a new soft drink brand, Sweet
Spring, using two production departments: mixing and bottling.
Thornton’s beginning balances and data pertinent to the mixing
department’s activities for Year 2 follow:
Accounts
Beginning Balances
Cash
$
52,600
Raw materials inventory
14,200
Production supplies
100
Work in process inventory (360,000 units)
43,200
Common stock
$
110,100
Thornton Cola issued additional common stock for $55,000
cash.
The company purchased raw materials and production supplies for
$34,590 and $600, respectively, in...
Baird Cola Corporation produces a new soft drink brand, Sweet Spring, using two production departments: mixing...
Baird Cola Corporation produces a new soft drink brand, Sweet
Spring, using two production departments: mixing and bottling.
Baird’s beginning balances and data pertinent to the mixing
department’s activities for Year 2 follow:
Accounts
Beginning Balances
Cash
$
50,900
Raw materials inventory
14,700
Production supplies
100
Work in process inventory (370,000 units)
44,400
Common stock
$
110,100
Baird Cola issued additional common stock for $56,000
cash.
The company purchased raw materials and production supplies for
$38,590 and $600, respectively, in...
Fanning Cola Corporation produces a new soft drink brand, Sweet Spring, using two production departments: mixing...
Fanning Cola Corporation produces a new soft drink brand, Sweet
Spring, using two production departments: mixing and bottling.
Fanning’s beginning balances and data pertinent to the mixing
department’s activities for 2018 follow:
Accounts
Beginning Balances
Cash
$
46,000
Raw materials inventory
14,700
Production supplies
100
Work in process inventory (390,000 units)
46,800
Common stock
$
109,800
Fanning Cola issued additional common stock for $55,000
cash.
The company purchased raw materials and production supplies for
$30,390 and $700, respectively, in cash....
Weston Enterprises is an all-equity firm with two divisions. The soft drink division has an asset...
Weston Enterprises is an all-equity firm with two divisions.
The soft drink division has an asset beta of 0.64, expects to
generate free cash flow of $67 million this year, and anticipates
a 3% perpetual growth rate. The industrial chemicals division has
an asset beta of 1.07, expects to generate free cash flow of $47
million this year, and anticipates a 2% perpetual growth rate.
Suppose the risk-free rate is 2% and the market risk premium is
6%.
b. Estimate...
Weston Enterprises is an all-equity firm with two divisions. The soft drink division has an asset...
Weston Enterprises is an all-equity firm with two divisions.
The soft drink division has an asset beta of
0.690.69,
expects to generate free cash flow of
$ 72$72
million this year, and anticipates a
3 %3%
perpetual growth rate. The industrial chemicals division has an
asset beta of
1.081.08,
expects to generate free cash flow of
$ 56$56
million this year, and anticipates a
2 %2%
perpetual growth rate. Suppose the risk-free rate is
3 %3%
and the market risk...
Weston Enterprises is an all-equity firm with two divisions. The soft drink division has an asset...
Weston Enterprises is an all-equity firm with two divisions.
The soft drink division has an asset beta of
0.64, expects to generate free cash flow of $68 million this
year, and anticipates a 4% perpetual growth rate. The industrial
chemicals division has an asset beta of 1.11, expects to generate
free cash flow of
$75 million this year, and anticipates a 3% perpetual growth
rate. Suppose the risk-free rate is 4% and the market risk premium
is 4%.
a. Estimate...
1.) A can of soft drink consists of CO2 dissolved in water and a vapor space...
1.) A can of soft drink consists of CO2 dissolved in water and a
vapor space filled with CO2 and H2O vapor. Your goal is to find the
mole fraction of CO2 in the liquid mixture at 2 bar and 17 C.
a.) Write down the equation that describes the vapor-liquid
equilibria for water-vapor in this system and name the variables
involved
b.) Write down the equation that describes the vapor-liquid
equilibria for CO2 in this system and name the...
You are the manager of a local factory that produces plastic bottles for soft drink manufacturers....
You are the manager of a local factory that produces plastic
bottles for soft drink manufacturers. Your assistant presents the
following data to you that he’s researched:
Estimated life of assembly line: 4 years Initial investment
cost: $800,000
Estimated salvage value: none
Estimated Cash Flow Analysis
Year Expected Cash Flow
1 $350,000
2 240,000
3 220,000
4 105,000
$915,000
a) Your assistant thinks you should buy the new
assembly line based on the information he has gathered. You are not...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- THIS PROGRAM HAS TO BE WRITTEN IN C Single function to perform the parity computation on...
- Consider a buffer system consisting of Benzoic acid (pKa = 4.20) and sodium benzoate, a) Would...
- Decision Variables S T Minimize 1.8S + 2.20T Subject to: Potassium 5S + 8T >= 200...
- A neurologist needs to counsel a stroke victim and her husband about possible outcomes, treatment options,...
- Case Study: Personal Beliefs in the Workplace Don Shakow was a prominent professional who worked in...
- 1: Competency framework usage is the modern best practice in management. What is meant by competency...
- A 19.34 g mixture of sugar (C12H22O11) and table salt (NaCl) is dissolved in 231 g...
ADVERTISEMENT