The Return of Detroit City: Enpar manufactures engine parts for Ford using steel as an input. Enparoperates two plants, one in Detroit, MI and one in Greenville, SC. The production functions for thetwo Enpar plants are:Detroit:QD=20SD -0.25 SD²Greenville:QG= 53SG - 0.5 SG²where QD and QG are the outputs of engine parts (in units) from the Detroit and Greenville plants,respectively. Sp and SG are the amounts of steel for the two plants. The firm has 159 units of steelavailable.How much steel should be sent to Detroit?Enter as a value. ROUND TO THE NEAREST WHOLE NUMBER.

The Return of Detroit City: Enpar manufactures engine parts for Ford using steel as an input. Enpar operates two plants, one in Detroit, MI and one in Greenville, SC. The production functions for the two Enpar plants are: Detroit: QD=20SD - 0.25 Sp² Greenville: QG= 53SG-0.5 SG² where Qp and QG are the outputs of engine parts (in units) from the Detroit and Greenville plants, respectively. Sp and SG are the amounts of steel for the two plants. The firm has 159 units of steel available

The Return of Detroit City: Enpar manufactures engine parts for Ford using steel as an input. Enpar operates two plants, one in Detroit, MI and one in Greenville, SC. The production functions for the two Enpar plants are: Detroit: QD=20SD - 0.25 Sp² Greenville: QG= 53SG-0.5 SG² where Qp and QG are the outputs of engine parts (in units) from the Detroit and Greenville plants, respectively. Sp and SG are the amounts of steel for the two plants. The firm has 159 units of steel available

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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S1. A firm's production function is well described by the equation Input prices are $10 per labor hour and $20 per machine hour, and the firm sells its output at a fixed price of $10 per unit. a. In the short run, the firm has an installed capacity of K = 50 machine hours per day, and this capacity cannot be varied. Create a spreadsheet (based on the example below) to model this production setting. Determine the firm's profit-maximizing employment of labor. Use the spreadsheet to probe the solution by hand before using your spreadsheet's optimizer. Confirm that MRPL = MCL. C 1 2 3 4 5 6 7 8 9 10 11 12 13 A B Labor MPL Q = 2L .01L² + 3K-.02K². 20.0 1.600 MRPL 16.0 MCL 10.0 D OPTIMAL INPUTS E F Capital 50.0 MPK 1.000 MRPK 10.0 MCK 20.0 G H Output Price MR Revenue Ave Cost I Profit 136.0 10.0 Cost 1200.0 8.8 10.0 1360.0 160.0 b. In the long run, the firm seeks to produce the output found in part (a) by adjusting its use of both labor and capital. Use your spreadsheet's optimizer to find…
A firm's production function can be written as:Q = 5LKwhere Q represents output per day. The unit costs of inputs are $150 for labor (L) and$1,000 for capital (K). Determine the least cost combination of L and K when output isproduced at the rate of 1,000 tons per day. Determine the required outlay for 1,000 tons perday.
The Return of Detroit City: Enpar manufactures engine parts for Ford using steel as an input. Enpar operates two plants, one in Detroit, MI and one in Greenville, SC. The production functions for the two Enpar plants are:Detroit: QD= 18SD – 0.25 SD2 Greenville: QG= 43SG – 0.5 SG2 where QD and QG are the outputs of engine parts (in units) from the Detroit and Greenville plants, respectively. SD and SG are the amounts of steel for the two plants. The firm has 104 units of steel available.How much steel should be sent to Detroit?Enter as a value. ROUND TO THE NEAREST WHOLE NUMBER.
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