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ECP 3703 Managerial Economics

Homework #3

Fall 2013

Professor T. Levy

Due date: October 28th, 2013 in class

1. In the Elwyn Company, the relationship between output (Q) and the number of hours of

skilled labor (S) and unskilled labor (U) is

Q = 300S + 200U - 0.2S^2 - 0.3U^2

The hourly wage of skilled labor is $10, and the hourly wage of unskilled labor is $5. The firm

can hire as much labor as it wants at these wage rates.

a. Elwyn’s chief engineer recommends that the firm hire 400 hours of skilled labor and 100

hours of unskilled labor. Evaluate this recommendation.

b. If the Elwyn Company decides to spend a total of $5,000 on skilled and unskilled labor, how

many hours of each type of labor should it hire?

2. Specialty Steel has carefully measured production in its new plant to determine whether it is

technically efficient in production. It has found that, for its two inputs K and L, it has the following

marginal products: MPK = 15 units and MPL = 22 units. The inputs are hired in perfectly competitive

markets, and the firm faces input costs of PK = $7.50 and PL = $10 per unit. You have been hired as a

consultant to assist Specialty in increasing profitability. What do you recommend about production

planning? Explain.

3. A firm uses two inputs to produce a final good. If the price of one of the inputs increases and

the price of the other remains the same, how will this affect the firm’s production isoquants? Its

isocost line? Its use of the two inputs?

4. Given the total cost equation: C = 32 + 2Q^2, derive equations for

a. Average total cost.

b. Average variable cost.

c. Marginal cost.

d. Average fixed cost

e. What level of Q yields the minimum level of total average cost of production?

 



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Students will be assessed on their knowledge of the concepts covered in the course and their capacity to apply that knowledge to improve business decision making.

 

Individual Project 

Each student will identify a company and conduct a research project on the company’s management problem.

Some suggested companies are:  Qantas, Fosters.  You may however choose any company from any country. 

A business can be thought of as a stream of decisions:

What product should we make

What price should we charge

How should we get the product to market

How should we communicate with potential customers about the product

What regions should we operate in

What partners should we have

What market segments exist and which ones should we target

Who should we employ

How much training should we deliver

Who should we promote

What IT supplier should we use

What advertising agency should we use

Where should the office be located

And many more.

You should not be limited by this list.

 

Sourcing both secondary and primary data, analysing and then drawing realistic conclusions, it will be presented in a report format and then the key issues and findings are to be presented.

 

Finally submit a 500 word report utilising the concepts and models covered in the lectures to analyse, discuss, identify alternatives and make recommendations to improve the performance of the organisation.

plz check if doable

price is fix i dont negiocate 

i need within 

I have paper called Human-Computer Interaction in my computer since course. AND it has an assignment with 4 phases. now I want to do my first Phase 1 which is about Understanding users & interaction

Q1: Capital formation refers to the:

U.S. governments

state and local governments

households

corporations

Q2: Which of the following borrowing sectors is the most important on an annual basis for

raising funds in the credit markets?

financial investment

real investment

contractual investment

voluntary investment

Q3: What type of investment occurs when claims to wealth in the form of financial assets are

purchased or when debt obligations are repaid?

individuals

business firms

financial intermediaries

governments

Q4: Which one the following four basic economic units consistently represents a savings surplus

unit?

Q5: The short-term accumulation of financial assets on the part of business corporations:

are held in short-term, safe, and liquid debt obligations

add to the level of long-term savings of the economy as a whole

do not enter the monetary stream to fund consumers, government, or other businesses

are held in the form of long-term obligations of the federal government

Q6: Private financial intermediation generally represents an important annual source of funds

supplied to credit markets. Which of the following intermediaries has failed to supply funds

during one or more recent years?

commercial banks



thrift institutions

insurance and pension funds

other financial intermediariesent years?

Q7: Government-held reserves which are invested primarily in the in the obligations of federal,

local, and state governments include:

life insurance

pension funds

retirement funds

money market funds

Q8: What type of investment occurs when claims to wealth in the form of real assets are

created or acquired?

financial investment

real investment

contractual investment

voluntary investment

Q9: Which of the following is the most liquid form of savings?

cash balances

time deposits

insurance reserves

securities

Q10: Which of the following represent the most important instrument used to raise funds in the

credit markets?

corporate bonds

tax-exempt obligations

consumer debt

mortgages



Q11: If interest rates increase because of a previously unanticipated inflation rate risk:



long-lived debt instruments will decline more than short-lived debt instruments

long-lived debt instruments will decline less than short-lived debt instruments

neither set of debt instruments will decline

all other things being equal, both should decline equally

Q12: Which of the following is not considered to be a basic theory used to explain the term



structure of interest rates?

expectations theory

loanable funds theory

liquidity premium theory

market segmentation theory

Q13: The relationship between interest rates or yields and the time to maturity for debt

instruments of comparable quality is called

the yield to maturity

the term structure of interest rates

the maturity risk premium

the expectations hypothesis

Q14: Which of the following interest rates are not determined in the money market?

U.S. Treasury bill rate

prime rate

commercial paper rate

federal funds rate

Q15: Which of the following costs serves to compensate the lender for loss of liquidity?

administrative costs of making the loan

cost of paying for the risk involved

cost to offset the likelihood of inflation

cost for use of money during the period of the loan



Q16: ______________ occurs during economic expansions when demand for goods and services



is greater than supply.

Administrative inflation

Speculative inflation

Cost-push inflation

Demand-pull inflation

Q17: When referring to a “downward sloping” yield curve:

as maturities shorten, interest rates decline

as maturities shorten, interest rates rise

as maturities lengthen, interest rates remain the same

as maturities lengthen, interest rates rise

Q18: The basic sources of loanable funds are:

short-term funds and currency

current savings and the creation of new funds through the expansion of credit by depository

institutions

contractual savings and commercial bank credit

bank loans and the creation of new funds through the contraction of credit by depository

institutions

Q19: Inflation caused by an increase in the money supply is called:

demand-pull inflation

cost-push inflation

administrative inflation

a combination of administrative and speculative inflation

Q20: Which of the following characteristics of most debt instruments do not cause bond prices to vary inversely with changes in financial market interest rates?

coupon rates

maturity dates



par redemption values

bond rating

Certain populations are more susceptible to the negative health effects of air pollutants. Discuss your opinion on how we should balance the economic considerations of stringent air pollution control measures with the protection of the most susceptible populations, such as children and those with respiratory ailments. one short answer



Certain populations are more susceptible to the negative health effects of air pollutants. Discuss your opinion on how we should balance the economic considerations of stringent air pollution control measures with the protection of the most susceptible populations, such as children and those with respiratory ailments.