Production of three different quantities of ditches

Assignment Help Business Economics

Reference no: EM13741229

Suppose that for a firm that digs ditches for laying cable or pipeline, backhoes and backhoe operators are pure complements in production, being used on a one-for-one basis. Draw the isoquants (on a graph with backhoe, “K”, and backhoe operators, “E”, on the axes) for the production of three different quantities of ditches. Do they have a “funny” shape? a) Now consider one such ditch-digging firm that has five backhoes but employs six backhoe operators. Can you explain why this might make sense? (Hint: think about whether/how the marginal product of the sixth backhoe operator could be positive) b) Now suppose you see another ditch-digging firm that has seven backhoes but employs six backhoe operators. How could this make sense?

Reference no: EM13741229

Questions Cloud

What are the costs and benefits of bribery to a business : That legislation may not always stop bad behavior but if properly enforced, it may make violators sorry what they did and serve as an example to deter others. The FCPA was intended to stop bribery or at least stop companies that are either based o..

Organizational development and training program : Imagine a customer service call center has recently hired you, as an HR advisor, to make recommendations to their organizational development and training program.

Innovations in employee benefits : Determine how innovations in employee benefits can improve the overall competitive compensation strategy of the organization.

Discuss the process of adjustment to the new equilibrium : Use a money supply and demand diagram to answer the following problem: Everything else being the same, what is the effect of an increase in interest rates on the price level? Discuss the process of adjustment to the new equilibrium.

Production of three different quantities of ditches : Suppose that for a firm that digs ditches for laying cable or pipeline, backhoes and backhoe operators are pure complements in production, being used on a one-for-one basis. Draw the isoquants (on a graph with backhoe, “K”, and backhoe operators, “E”..

Discuss the motivational methods : Write a 1,050- to 1,400-word paper in which you discuss the motivational methods you would use when introducing such a significant change to your organization. Address the following:

Under a situation of majority voting : How can a small special-interest group win, since the benefits flow only to a small group, under a situation of majority voting?

What are the characteristics of perfect competition : What are the characteristics of perfect competition? Why does this type of fast-food restaurant tend to display characteristics of perfect competition? Imagine you are running a firm with the characteristics of a perfectly competitive firm. Describe ..

Management information system-automating inventory : Write a 3 page paper that addresses how a management information system for automating inventory management, invoice generation, receiving processes, requiring customer order fulfillment, and having Web-based self-services would help her business ..

User Account

All Pages