I'm sorry but I updated the information as Timed out because I ran out of time.
But if you want I can keep the same deal for these others and give a bonus!!!
Business Week, in an article dealing with management wrote, " When he took over the furniture factory three years ago..." [the manager] realized almost immediately that it was throwing away at least $100,000 a yr. worth of wood scrap. Within a few weeks he set up a task force of managers and workers to deal with the problems. And withn a few months, they reduced the amount of scrap to $7,000 worth [per year]. "Was this necessarily and economical efficient move?
The MorTex Company assembles garments entirely by hand even though a textile machine exists that can assemble garments faster than a human can. Workers cost $50 per day, and each additional laborer can produce 200 more units per day (i.e., marginal product is constant and equal to 200). Installation of the first textile machine on the assembly line will increase output by 1800 units daily. Currently the firm assembles 5400 units per day.
a) The financial analysis department at MorTex estimates that the price of a textile machine is $600 per day. Can management reduce the cost of assembling 5400 units per day by purchasing a textile machine and using less labor? Why or Why not?
The production engineers at Impact Industries have derived the expansion path shown in the following figure. The price of labor is $100 per unit
A.) What price does Impact Industries pay for capital?
B.) If the manager at Impact decides to produce 180 units of output, how much labor and capital should be used in order to minimize total costs?
C.) What is the total cost of producing 120, 180 and 240 units of output in the long run?
D.) Impact Industries originally built the plant (i.e. purchased the amount of capital) designed to produce 180 units optimally. In the short run with capital fixed, if the manager decides to expand production to 240 units, what is the amount of labor and capital that will be used? (Hint: How must the firm expand output in the short run when capital is fixed?)
E.) Given your answer to part D, calculate average variable, average fixed, and average total cost in the short run.
Y U capital
X U labor
y50, x8= 240
Read more: http://www.justanswer.com/questions/ll14-ecOnothe-production-engineers#ixzz0Hs4RtQQF&C
b) The Textile Workers of America is planning to strike for higher wages. Management predicts that if the strike is successful, the cost of labor will increase to $100 per day. If the strike is successful, how would this affect the decision in part (a) to purchase a textile machine? Explain.