Short run production function

Assignment Help Microeconomics
Reference no: EM1370299

You manage the plant the mass produces engines by teams of workers using assembly machines. The technology is summarized by production:

q = 5KL

Where q is the number of engines per week, K is the number of assembly machines and L is the number of labor teams. Each assembly machine rents for r = 10,000$ per week and each team costs w = 5,000$ per week. Engine costs are given by the cost of labor teams and machines, plus 2,000$ per engine for raw materials. Your plant has a fixed installation of 5 assembly machines as part of its design at the current moment (short run).

a) Find out the short run production function?

b) Find out the total cost function for your plant to produce q engines (in terms of q only)?

c) What are average and marginal costs for producing q engines in the short run?

d) How many teams are required to produce 250 engines? What is the average cost per engine at this output?

Reference no: EM1370299

Questions Cloud

Explain good algorithms to solve character pathfinding : You are working on the new computer game. One of implementation problems you are trying to solve is character pathfinding. What algorithms would be good to use and explain why?
Explain what are the arguments for and against social : Explain What are the arguments for and against social responsibility on the part of businesses? Research the topic and discuss
Perform a decision-tree analysis : Decision analysis - Operations Management Perform a decision-tree analysis of this problem and Perform a decision-tree analysis of this problem and choose whether to or not to replace the transformer.
Explain how can the american legal system : Explain How can the American legal system and which is so devoted to protecting individual rights and justify itself morally if it jeopardizes
Short run production function : You manage the plant the mass produces engines by teams of workers using assembly machines. The technology is summarized by production: Find out the short run production function? Find out the total cost function for your plant to produce q engines ..
Determine profit maximizing level of production : Groovy Tuesday, a clothing maker, has found that their costs can be approximated by the equation: C = 500 + 2Q2. The consulting company they hired to estimate their current demand determined that demand is characterized by:
Explain ibm plan to give its it assets-intellectual property : Will IBM's plan to give away some of its IT assets and intellectual property also increase its support of open-source software products like Linux.
Effective management of a decision implementation plan : What are the steps for effective management of a decision implementation plan and how should managers monitor the progress of decision implementation?
Explain the project charter usually will include assumptions : Explain The project charter usually will include assumptions about the risks the project will face.

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd