We frequently hear the following terms used by businesspersons. what

Chapter 9

#6. We frequently hear the following terms used by businesspersons. What does each mean in economic terminology?

 

A. spreading the overhead.

B. A break-even level of production

C. The efficiency of mass production.

 

#2. Dimex Fabrications Co., a small manufacturer of sheet-metal body parts for a major U.S. automaker, estimates its long-run production function to be

                       Q= -0.015625K3L3 + 10 K2 L2

where Q is the number of body parts produced daily, K is the number of sheet-, metal presses in its manufacturing plant, and L is the number of labor-hours per day of sheet-metal workers employed by Dimex. Dimex is currently operating with eight sheet-metal presses.

a. What is the total product function for Dimex? The average product function? The marginal product function?


b. Managers at Dimex can expect the marginal product of additional workers to fall beyond what level of labor employment?

c. Dimex plan to employ 50 workers. Calculate total product, average product, and marginal product

 

#3. The chief economist for Argus Corporation, a large appliance manufacturer, estimated the firm’s short-run cost function for vacuum cleaners using an average variable cost function of the form

AVC = a + bQ + cQ2

where AVC dollars per vacuum cleaner and Q number of vacuum cleaners produced each month. Total fixed cost each month is $180,000. The following results were obtained:

DEPENDENT VARIABLE: AVC   R-SQUARE F-RATIO P-VALUE ON F

              OBSERVATIONS: 190   0.7360        39.428      0.001

VARIABLE                PARAMETER      STANDARD   T-RATIO   P-VALUE
                                  Estimate               Error


INTERCEPT                 194.93                  54.65             .512         0.0029
  Q                                -0.0305              0.00789          23.866         0.0014
Q2                                 0.0000024        0.00000098     2.449          0.0262

a. Are the parameter estimates a, b, and c statistically significant at the 2 percent level of significance?


b. Do the results indicate that the average variable cost curve is U-shaped? How do you know?


c. If Argus Corporation produces 8,000 vacuum cleaners per month, what is the estimated average variable cost? Marginal cost? Total variable cost? Total cost?


d. Answer part c, assuming that Argus produces 10,000 vacuum cleaners monthly.


e. At what level of output will average variable cost be at a minimum? What is minimum average variable cost?

 







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Enjoy 10% OFF today with the coupon code: best10