6. The production function for a process is x = 16(e1 + e2) if e₁ and e2 are both greater than zero,if either equal zero, then x = 0. The effort exerted by team member i is e; and x is measured indollars. The sharing rule is that they split the yield of their joint effort in half. Team member i'sutility is given by u; = m; - 2e, where m is income. The marginal disutility of effort for teammember i is 4ei.(a) Find the efficient effort levels, production, and utility levels.(b) What is the outcome associated with their partnership (effort and income levels)?(c) What is the maximum amount that these two team members would be willing to pay someoneto monitor their effort levels? Assume that the monitor has a big enough whip to completelystop any shirking.

(b) The outcome associated with their partnership (effort and income levels).The outcome associated…

Answered: 6. The production function for a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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You are an efficiency expert hired by a manufacturing firm that uses Kand Las inputs. The firm produces and sells a given output. If w = $40, r= $100, MPL = 4, and MPK = 40 the firm: A.J is cost minimizing. B.) should use less Land more K to cost minimize.C.) should use more Kand less Lto cost minimize. D.j is profit maximizing but not cost minimizing.
Oregon Fiber Board makes roof liners for the automotiveindustry. The manufacturing manager is concerned aboutproduct quality. She suspects that one particular failure, tears in the fabric, is related to production-run size. An assistantgathers the following data from production records: a. Draw a scatter diagram for these data.b. Does there appear to be a relationship between run sizeand percent failures? What implications does this datahave for Oregon Fiber Board’s business?
O A firm producing a single product has three plants and four customers. The three plants will produce 3,000, 5,000, and 5,000 units, respectively, during the next time period. The firm has made a commitment to sell 4,000 units to customer 1, 3,000 units to customer 2, and at least 3,000 units to customer 3. Both customers 3 and 4 also want to buy as many of the remaining units as possible. The profit associated with shipping a unit from plant i to customer j is given in Table 82. Formulate a balanced transportation problem that can be used to maximize the company's profit. TABLE 82 To Customer ($) From 1 2 3 4 Plant 1 65 63 62 64 Plant 2 68 67 65 62 Plant 3 63 60 59 60
Football weights The Sears Cup was established in 1993to honor institutions that maintain a broad-based athleticprogram, achieving success in many sports, both men’sand women’s. Since its Division III inception in 1995, thecup has been won by Williams College in every yearexcept one. Their football team has a 85.3% winningrecord under their current coach. Why does the footballteam win so much? Is it because they’re heavier thantheir opponents? The table shows the average teamweights for selected years from 1973 to 1993.a) Fit a straight line to the relationship between Weightand Year.b) Does a straight line seem reasonable?c) Predict the average weight of the team for the year2003. Does this seem reasonable?d) What about the prediction for the year 2103? Explain.e) What about the prediction for the year 3003? Explain. Year Weight (lb) Year Weight (lb)1973 185.5 1983 192.01975 182.4 1987 196.91977 182.1 1989 202.91979 191.1 1991 206.01981 189.4 1993 198.7
Question 2 Mean reversion of profits for competitive industries suggests that Group of answer choices A. when there are profits, the competition of new firms will reduce that profit; and when there are losses, firms going out of business will reduce profits for businesses that remain B. when there are profits, the competition of new firms will reduce that profit; and when there are losses, firms going out of business will increase profits for businesses that remain C. profits will tend to increase over time D. when there are profits, the competition of new firms will increase that profit; and when there are losses, firms going out of business will reduce profits for businesses that remain Question 3 Mohammad is an accounting major. Upon graduation, he is not sure if he should accept a job offer in accounting from a bank or a law firm. He wants to work in whichever industry expected to have higher profits so he can earn a higher income. According to the indifference principle, Group of…
5.Each of Player 1 and Player 2 chooses an integer from the set {1, 2, ..., K}. If they choose the same integer, P1 gets +1 and P2 gets -1; if they choose different integers, P1 gets -1 and P2 gets +1. (a) Show that it is a NE for each player to choose every integer in {1, 2, ..., K} with equal probability, K1 . (b) Show that there are no NE besides the one you found in (a).
Assume you work for a company that redesigns existing products to improve them, from computer keyboards to bicycle helmets to tootbrushes. As a result, creativity is a key factor in whether your company succeeds in developing a product that is marketable. You need to staff a new team of 5 individuals, and you have a pool of 20 to choose from. For each person, you have information about the following characteristics: intelligence, work experience, conscientiousness, agreeableness, neurotism, openness to experience, and extraversion. Answer the following questions: 1. If you could form your perfect team for this context, what would it look like? In other words, what characteristics would you choose for each of the five members—a lot of work experience or a little; high, moderate, or low conscientiousness; and so on? Why? 2. How, if at all, would your choices change if the task required teams to make quick decisions that were not necessarily the most creative? Why?
2 Scenario Your client, InsureCorp, is an insurance company considering launching an 'income insur- ance' product in the nation of Motherland. Income insurance is a product that fully insures a household against changes in income caused by a major injury or illness. At present, no businesses are selling income insurance products in Motherland. Initial market research suggests that there are 15,000 households in Motherland interested in purchasing income insurance. Your client expects that the fixed cost of launching the income insurance product will be $25,000,000 per year, and that each policy issued to a customer will cost the company an additional $2,000 in sales commissions. 2.1 Your task Your client wants you to analyse the potential market for income insurance and report on the following: What is the maximum price the company can charge a household for an income insurance policy? What is the expected profit (or loss) for the company if it becomes a monopoly provider of income…
26 %24 林 5. Refer to the accompanying table below. The marginal cost of the 3rd unit of this activity is: Units of Activity Total Cost Total Benefit O$ 1. 2. 3. 092$ $210 4. $150 $220 $210 $225 6. Multiple Choice $25 $20 < Prev 9 of 27 Next to search 立 to F7 F10 F11 F6 F8 6F. F5 F4 & %23
You are an efficiency expert hired by a manufacturing firm that uses Kand Las inputs. The firm produces and sells a given output. If w = $40, r = $100, MPL = 4, and MPK = 40 the firm: A.) is cost minimizing. B.) should use less Land more K to cost minimize.C.) should use more Kand less Lto cost minimize. D.) is profit maximizing but not cost minimizing.
COMMUNICATION WITH THE MILLENIALS The Millennial (including Generation Y) have arrived in the workplace and they are brining new ways to communicate. Surreys report that the generation lives by computer and cellphone communication. Three out of four Gen-Yers use instant messaging (including [twitter tweets, 15% of them are logged on to instant messaging 24/7. Mot Gen-Yers either have a space on a social networks site such as Facebook or frequent these sites where they have friends. These digital natives also get most of their news from the Internet rather than from television or newspaper. "Employers re going to find this generation communicate differently. They IM (instant manager). Send text messages and can't live without cellphone", says Dave O Brien, regional manger of Berbee, a company that helps businesses with their information technology needs. Frank Albi president of Inacom, a technology and business consulting firm, agree " the way they ( millennials) exchange information is…
Firms with maintenance-orientation cultures have more positive performahce than those with performance-focused cultures. O True O False

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