Reference no: EM131336034
Suppose that Gloucester Old Bank's customers can complete their transactions at a teller's window (involving labor) or at an ATM (involving capital). The production function for the bank's services is given as follows: Q = 4K + 6L, where Q is the number of customers served, K is the number of ATMs the bank has installed in town, and L is the number of tellers the bank has hired.
a. Suppose that Gloucester currently has 20 ATMs and 20 tellers. If 3 ATMs suddenly fail, how many additional tellers must the bank hire to maintain their original level of service?
b. Does your answer to (a) change if Gloucester originally only uses 17 ATMs? 30 ATMs?
c. What do production isoquants look like for Gloucester Old Bank? (Hint: Graph different combinations of tellers and ATMs that can serve an arbitrary number of customers, such as 200.)
d. How would you verbally describe the relationship between tellers and ATMs?
e. Suppose that installing and maintaining an ATM costs $20, and hiring a teller costs $32. What will happen to Gloucester's total number of customers served if it lays off 2 workers and installs 3 ATMs? What will happen to the bank's costs?
f. Using the idea developed in (e), if Gloucester Old Bank is interested in minimizing its costs, what strategy should it employ regarding its input mix?
|
Preference of the portrayal on film or on stage
: Compare and contrast one character citing a preference of the portrayal on film or on stage. Support your selection and with specific choices that the actors made in bringing their character to life.
|
|
What is involved with assessing competition
: What is involved with assessing your competition? Why is it important? How can strong competitors benefit a company? Discuss the advantages of being a market follower. When would you apply this strategy?
|
|
Write a paper on any aspect of african american experience
: Write a paper on any aspect of the African American experience covered in class and relate it to a current event found in a reliable media source or a personal experience that comes from your narratives at the beginning of the semester. The purpos..
|
|
Development of a mobile application
: As a project manager, you are going to prepare two project outlines for the development of a mobile application. One project outline uses a waterfall model, another uses an agile method.
|
|
Describe the relationship between tellers and atms
: Suppose that Gloucester currently has 20 ATMs and 20 tellers. If 3 ATMs suddenly fail, how many additional tellers must the bank hire to maintain their original level of service?
|
|
Theory and correlation of emotional intelligence
: Research has been done on the theory and correlation of emotional intelligence (EI) related to organizational success and long-term sustainability of a manager/leader in his or her career.
|
|
Develop a pico question based on the evaluation plan
: To prepare: Develop a PICO question based on the Evaluation Plan Focus Assignment completed last week. Reflect on why it is important that this question be answered. Identify the "who cares?" factor
|
|
What can baldor do to improve its situation
: Baldor, Inc. measures the marginal rate of technical substitution (MRTS) at MPL/MPK = 3. The prices of labor and capital faced by Baldor are such that currently W/R = 4.
|
|
Financing a new business corporation
: Write a 1-2 page essay considering the types of stock you might issue if you were financing a new business corporation. In addition consider whether you would market the stock, either privately or publicly.
|