Suppose the production process for running shoes is given by q = 10KL where q is the number of pairs of running shoes produced, K is the number of machine hours of sewing and, L is the number of person-hours of labor. 1. Derive the cost-minimizing demands for K and L as a function of output (q), wage rates (w), and rental rate on machines (r). 2. Write the total cost function for running shoes as a function of q, r, and w. 3. Suppose the producer wants to make 2000 pairs of running shoes. If the current wage rate is $25 per hour and the rental rate on machines is $50 per hour, find the cost- minimizing combination of inputs to make the desired quantity.

Suppose the production process for running shoes is given by q = 10KL where q is the number of pairs of running shoes produced, K is the number of machine hours of sewing and, L is the number of person-hours of labor. 1. Derive the cost-minimizing demands for K and L as a function of output (q), wage rates (w), and rental rate on machines (r). 2. Write the total cost function for running shoes as a function of q, r, and w. 3. Suppose the producer wants to make 2000 pairs of running shoes. If the current wage rate is $25 per hour and the rental rate on machines is $50 per hour, find the cost- minimizing combination of inputs to make the desired quantity.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Define the term Net Present Worth?
Question 1 Use the numbers below for questions #1-3. Filing Status: Single Total Income: $73, 883 Income Adjustments: $0 Itemized Deductions: $14,239 What is the Adjusted Gross Income for this individual?
what is income ?
who pays for government services?
What is the costliest local government service?
Evaluate the impact of age, and geographic location on personal income.
What is the Small Business Administration (SBA)?
From the Ontario government website www.ontario.ca/page/education-and-training What skills do you need to be successful in your career?
When a business sells good to A. Both on credits debtor is debted and is credited
How do federal, state, and city agencies use earned value data? Give descriptive reasoning for each one and provide examples of how each agency uses it?
Which of the following is not an important consideration when deciding when to collect social security: a. average life expectancy b. family history c. marital status d. family financial situation