. Apple uses labour and machines to produce iPhones according to the production f y = L&M, where L is the number of units of labour used and M is the number of m The cost of labour is w₁ = 4 per unit and the cost of using a machine is wM = 16. faces a fixed cost of F = 25 for renting its factory. Given these input prices, Apple cl how much labour and machines to employ in order to minimize the cost of producin, given amount of iPhones y. Apple is therefore solving a cost-minimization problem.

. Apple uses labour and machines to produce iPhones according to the production f y = L&M, where L is the number of units of labour used and M is the number of m The cost of labour is w₁ = 4 per unit and the cost of using a machine is wM = 16. faces a fixed cost of F = 25 for renting its factory. Given these input prices, Apple cl how much labour and machines to employ in order to minimize the cost of producin, given amount of iPhones y. Apple is therefore solving a cost-minimization problem.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: The graph shows the U.S. productivity curve in 1960. Draw a point to show real GDP per hour of labor…

A: GDP, or Gross Domestic Product, is used to assess the economic performance of a country. It shows…

Q: An economist predicts that the cost of food will increase by 4% per year for the next several years.…

A: * SOLUTION :- (5) From the given information the answer is provided as below as ,

Q: A library has a bookshelf to store books on that is 55 meters long. A children's book will take up…

A: The objective of the question is to determine how many children's books and dictionaries can be…

Q: 7. Why are economists only interested in the spending on U.S. goods and services?

A: Economists aren't only interested in the spending on U.S. goods and services. But, the united states…

Q: Select one: O a. Producers in France would receive extra profit by adopting a labour-saving…

A: Labor refers to the physical and mental effort or work that individuals, employees, or workers…

Q: Labour 300 Labour 600 Labour 900 Physical Capital Year 1 800 Answer 800 800 Physical Capital Year 2…

A: Output per worker is a measure of productivity calculated by dividing the total output by the number…

Q: Draw a well labeled graph (similar to graph 10.3 on page 283 from textbook) showing the point of…

A: ***Since the student has asked to solve a specific part of the question, hence, the expert is…

Q: What is the answer for d and e?

A: Introduction ( General terms) The term "marginal private cost" (MPC) refers to the variation in a…

Q: I have worked on 1-3, but am stuck on 4-6, could you please assist? Suppose that the economy is…

A: The Solow Growth Model captures the dynamics of economic growth by considering the impact of labor…

Q: am. 131.

A: The objective of the question is to maximize the function f(x,y) = x - (x^2)/2 + y^2 subject to the…

Q: A company makes two types of calculators, one that uses batteries and one that is solar powered. The…

A: Given:The company makes two products - battery operated calculators and solar-powered calculators…

Q: A custom motorcycle company can produce more motorcycles if it has more workers. The company has…

A: When a corporation adds a single labour unit while maintaining the same level of production, the…

Q: If Q = 0.5 K² L², and we use 2 units of capital and 2 units of labour, what is the average product…

A: Average product = Total productLWhere L is labour

Q: An average worker in Zambia can mine a pound of copper in 30 minutes and produce a pound of tobacco…

A: A production possibility frontier (PPF) shows the maximum possible output combinations of two goods…

Q: 1. The production technology of a firm is given by the following equation: Y = 15K SN-5 Assume K…

A: A) Y=15*K^0.5*L^0.5 Given K=25, Y=15*25^0.5*L^0.5 Y=15*5*L^0.5 Y=75*L^0.5 L=1, Y=75*1^0.5=75 L=2,…

Q: Figure 11-4 Real GDP per hour worked, Y/L $17,000 16,400 16,000 15,000 $50,000 B E 60,000 70,000…

A: The production function shows the relationship with the input used and output produced.There is…

Q: of producing corn (just the value, no units) for each country in the table below. (In decimal…

A: According to the Ricado's comparative advantage theory of trade a country should produce and export…

Q: 13. Given the following data on population size and land area, which of the countries has the…

A: Population density=PopulationLand area

Q: 3. Write the following system of equations in the matrix form AX = B₁ Y 1 C where X = Y=C+I+Go…

A: The system of equations:In the above system of equations, the endogenous variables are Y, C, and…

Question

can you explain the solution for part b like for example how did they get M=y^2/2 and L=2y^2

15. Apple uses labour and machines to produce iPhones according to the production
y = LAM, where L is the number of units of labour used and M is the number of me
The cost of labour is w₁ = 4 per unit and the cost of using a machine is wWM = 16.
faces a fixed cost of F = 25 for renting its factory. Given these input prices, Apple cl
how much labour and machines to employ in order to minimize the cost of producin,
given amount of iPhones y. Apple is therefore solving a cost-minimization problem.
Solution: a) We have the technical rate of substitution is equal to the ratio of input
{M}
= so that L = 4M and
LM
prices: MPL
WL. Here, that implies:
MPM WM
Apple will use 4 workers for each machine.
PERDRY
I
=
b) We have y LM and L= 4M. Solving them together gives: M =
and L = 2y².
=

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: State the given information:

VIEW

Step 2: Explain the answer:

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Suppose your Chaffey college tuition per semester is $4,000 and your extra expenses with the college during the year (books, ather materiais, gas, meals, etc) sum $3,000. If you were not attending college, you could work at firm X and get an annual salary of $ 5,000. What is your opportunity cost of attending college in one year? In your calculations assume that you are taking 2 semesters in a year
fast urgent
Please Answer My question Mathematics Economics.... Because I Know The Tutor Can Answer 3 Sub Parts... Please Answer My Question 1 A,B,C
An open system is one in which neither the heat and work nor the mass of the working substance crosses the boundary of the system O True O False.
In ‘standing on shoulder’ effect in the production of ideas existing technology can be productive in the production of new technology just as it is in the production of final goods. True or False
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
Give me correct and accurate answer otherwise i give downvote Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Problem 2 In class, we argued that if people could accumulate human as well as physical capital, the production function would look like the "AK" production function. (a) If the production function is AK and the savings rate is constant at rate "s", and the rates of depreciation and population growth are 8 and n respectively, what would the growth rate of the economy be? (b) What would be the macroeconomic consequences of increasing the savings rate in this economy? Explain using the model and intuitively. (c) What would be the consequences of an increase in fertility in this economy? Are these consequences good or bad? Is this answer unambiguous? (d) How are human and physical capital different from one another in the way they evolve from period to period? (e) Does human capital have an upper limit? If it does, what is the resulting production function when this is reached and the growth rate of the economy? If it doesn't have a limit, what is the resulting growth rate of output as it…
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
In economics, the terms efficient, effective and productive are often known. Question: a. Explain the difference between each of these terms. Explain with examples b. How many types of efficiency are there? Explain the difference between each! c. If the results of the rice production model are as follows: Qp = 0.031 + 0.046 Land Area + 0.092 Seed + 0.198 TK + 0.728 Fertilizer + 0.222 Perticide. Explain the results of the analysis related to the concept of efficiency for each variable and return of scale
Joe, Tanya, Fred and Susan are old friends from high school, now working in various boring office jobs in the city. One night, Susan invites everyone to her house for dinner and a chat. During dinner, and while the 4 friends were complaining about how much they hated their jobs, they start throwing some ideas around for starting their own business. At one point, they tell each other: “Man, as soon as this business makes money, I’m quitting my office job. We are going to be rich!” The 4 friends agree to start a cupcake business together. They are very excited and start writing down a business structure on a napkin. It reads: “Susan and Fred will do the baking and decorating, Joe and Tanya will do the paperwork side of things including booking market stalls, asking Bunnings if they can sell cupcakes on Sat mornings, create a Facebook page & website for the business and manage the money side of things.” They also agree that they would split all profits and losses evenly. For the…