1. Assume that we have a Cobb-Douglas type aggregate production function in the form: Y = KªL® Find output per labor; capital per labor (y=Y/L and k= KL). а. b. Briefly define what is derivative of y with respect to k or y' or dk Briefly explain why y' > 0 or = > 0.Is it possible that dy < 0? Why? с. dk dk d. Briefly explain why y" < 0. е. Find the elasticity of substitution between K and L. What does expansion path look like?

1. Assume that we have a Cobb-Douglas type aggregate production function in the form: Y = KªL® Find output per labor; capital per labor (y=Y/L and k= KL). а. b. Briefly define what is derivative of y with respect to k or y' or dk Briefly explain why y' > 0 or = > 0.Is it possible that dy < 0? Why? с. dk dk d. Briefly explain why y" < 0. е. Find the elasticity of substitution between K and L. What does expansion path look like?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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1.The company has three months (April. May and June) for subtracting the units for both NOOR-Company's and AL-SALAM company 2. The company should first satisfy AlNOOR company demand then AL-SALAM company demand. 3. Both production units will work in producing the units 4. Production Unit B will be busy during April 5. The company can work up to 24 hours per day 6. The profit should be at least $1500 Do you think that XYZ-Company should accept or reject the offer?
Which of the followilA a Interest payments b) Property taxes O Raw materials costs di Rental cost e) All the above are variable costs. 3500 at the end of 5 years. Yearly rental cost 4 A project has a basic cost of 5000 and a market value oft will be 2000 dollars and the vearly labor cost is $2000/labor where 15 labors works on this project The operating cost will be 1.15 dollars per hour. The project operates 7 hours every day (working 365 davs in year), taxes and insurances will be 1500 dollars every year. Find the Equivalent UniformAppual Ca of this project (Hint: EUAC-CR+yearly total expenses) using i-5% a) 37,960 b) 36,960 c) 41,000 d) 38.960 e) 35,600 5. A service system has a rental cost of 2000 dollars per year, the operating cost is 5 dollars per hour and the selling price is 7 dollars per hour. This system operates 8 hours per day 5 days a week. What is the o% reduction in breakeven point in hours (sensitivity) if the selling price increased by 20% a) 58% b) 41% c) 44% d) 51%…
PP.71 A small manufacturer of specialty welding equipment has developed a combination production plan for the next four quarters, as seen below. Supply/Demand Info Pre-Q1 Q1 4,620 4,620 Forecast (demand) Regular production Subcontract production Ending inventory Hired employees Fired employees Total employees 42 42 Q2 Q3 Q4 4,730 5,390 5,170 5.080 5.060 5.080 330 4 46 The table below shows additional relevant information: Capacity Information & Cost Variables Production rate (units/employee/quarter) Subcontractor capacity (units/quarter) Regular production cost/unit Holding cost'unit/quarter Hiring cost/employee Firing cost/employee Subcontract cost/unit 110 480 $85 $13 $820 $2,150 $119 110 110 46 46 What is the overall total cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total subcontract cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total holding cost for this production plan?…
Don’t solve in excel please . q.3
Exhibit 1. Solver Sensitivity Report. A В E F H 6 Variable Cells 7 Final Reduced Objective Allowable Allowable 8 Cell Name Value Cost Coefficient Increase Decrease $B$25 kg x1 $C$25 kg x2 9. 8. 300 200 300 10 4 500 1E+30 200 11 12 Constraints 13 Final Shadow Constraint Allowable Allowable 14 Cell Name Value Price R.H. Side Increase Decrease 15 ŞE$20 N 1320 600 720 1E+30 16 $E$21 P 1080 3.333333333 1080 1E+30 432 17 SE$22 K 60 13.33333333 60 90 60 Referring to Exhibit 1, if the right-hand side of the K constraint changes to 30, then the objective function value: will decrease by 13.3333 will decrease by 400. O will decrease by 133.3333. O will remain the same.
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38. Last year, the Montvilo family spent $1,745.10 for electricity. They are optingto use balanced billing for next year. What will their monthly payment beunder balanced billing? A. $1,745.10B. $290.85C. $174.51D. $145.43
7 A budget is essentially a quantitative statement for ___________ period of time. a. Present b. Past c. All of these d. Future
Aspen Company has sales of $2,000,000, cost of goods sold of $200,000, and selling and administrative costs of $500,000. Aspen Company's gross margin is: A. $1,800,000. B. $1,500,000. C. $1,300,000. D. $1,700,000.
4 (Using the same problem) A vendor for the local ballpark food stand is questioning whether to stock his concession with a large or small inventory. He believes that it will depend upon the size of the crowd. He has developed a payoff matrix for the various alternatives (stocking decision) and states of nature (size of crowd). What is the Expected Monetary Value (EMV)? Alternatives Large Inventory Small Inventory Probability A) $68,400 O B)-$20,000 O C) $10,000 O D) $51,500 O E) $78,400 Large Crowd $220,000 $90,000 .20 PROFIT ($) Average Crowd $50,000 $70,000 .50 Small Crowd -$2,000 -$5,000 30
Q: Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $B$5 consider Cake (C) 0 -0.5 4.5 0.5 1E+30 $C$5 consider Dozen Cookies (D) 10 0 10 1E+30 1 what does the value minus .5 for the reduced cost of C mean (other than it is the change in thevalue of the coefficient in the objective function so that the solution includes a positive amountof C)?