Your automobile assembly plant has a Cobb-Douglas production function given byq = x0.4y0.6, where q is the number of automobiles it produces per year, x is the number of employees, and y is the daily operating budget (in dollars). Annual operating costs amount to an average of $28,000 per employee plus the operating budget of $365y. Assume that you wish to produce 3,000 automobiles per year at a minimum cost. How many employees should you hire? (Round your answer to the nearest employee.)x - Incorrect: Your answer is incorrect. employees

Your automobile assembly plant has a Cobb-Douglas production function given byq = x0.4y0.6, where q is the number of automobiles it produces per year, x is the number of employees, and y is the daily operating budget (in dollars). Annual operating costs amount to an average of $28,000 per employee plus the operating budget of $365y. Assume that you wish to produce 3,000 automobiles per year at a minimum cost. How many employees should you hire? (Round your answer to the nearest employee.)x - Incorrect: Your answer is incorrect. employees

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis

Section: Chapter Questions

Problem 9TY

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Your automobile assembly plant has a Cobb-Douglas production function given by =x0.4 0.6, q = x where q is the number of automobiles it produces per year, x is the number of employees, and y is the daily operating budget (in dollars). Annual operating costs amount to an average of $29,000 per employee plus the operating budget of $365y. Assume that you wish to produce 4,000 automobiles per year at a minimum cost. How many employees should you hire? (Round your answer to the nearest employee.) X employees X =
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Consider the following cost function (C): C= 0.25q3 - 4q? + 75q + F. The equation for average cost (AC) is: AC = |. (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a superscript can be created with the ^ character.) The equation for variable cost (VC) is: Vc=. (Properly format your expression using the tools in the palette.) The equation for marginal cost (MC) is: MC =. (Properly format your expression using the tools in the palette.)
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You start creating personalized iPhone cases. Suppose the quantity of cases demanded each month is related to the price by the equation p- 1600 - 20g where p is the price per case in dollars and q is the mumber of cases. Your total cost to manufacture q cases is given by 10g? + 30 180 – 2g C(9) = (a) Find the average cost function (simplify where possible). (b) Find the total profit as a function of q. (c) Find your marginal profit at a demand level of 60 cases per month and write a sentence interpreting what your answer means in terms of your busi- ness. Include units.
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