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The Alex Corporation uses two inputs, A and B, to produce boats. The production function for boats is given byQ = A^0.5 x B^0.5, (or the square root of A multiplied times the square root of B)and the marginal products of A and B are given byMPa = 0.5Q/AMPb = 0.5Q/B
The prices of inputs are given by Pa = $10 and Pb = $10and the price of boats equals $30.
(a) If the Alex Co. has a total budget of $200 to spend on purchasing inputs, how many units of A and B should it hire?
(b)What will be its output, revenues, costs, and profits?
Suppose a company that uses two inputs. The quantity used of input 1 is denoted by x_1 and the quantity used of input 2 is denoted through x_2.
During the last ten-years, sales revenue has increased from 25 million to 65 million. Estimate the company's growth rate in sales using the constant growth model with annual compounding.
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Rochester Metro Area was hit with a major ice storm in 2003. Suppose that before ice storm of 2003, the weekly demand and supply for ice in the Rochester Metro Area were given by following equations:
Define and explain the terms decision management and decision control. Under what situations might it be optimal to make one individual responsible for both decision management and decision control?
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The article study for the demand, supply and the market equilibrium has been discussed. The article that has been review was published on August 2012.
The following table demonstrate yearly sales information for Landrover, Inc., over the ten-year 1998-2008 period:
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