Mercantile Metalworks, LLC. manufactures wire carts for grocery stores. The production manager at Mercantile wishes to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Mercantile Metalworks, LLC. manufactures wire carts for grocery stores. The production manager at Mercantile wishes to estimate an empirical production function for the assembly of carts using the following time-series data for the last 22 days of assembly operations. L is the daily number of assembly workers employed, and Q is the number of carts assembled (completely) for that day. Mercantile pays its assembly workers AED160 per day in wages and benefits. Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Number of workers L 15 21 24 32 36 38 18 18 EX 41 36 44 40 21 27 20 15 36 14 24 25 32 21 Number of carts assembled Q 75 897 1,280 1,251 1,315 2,837 590 129 1,572 2,005 1,024 2,165 1,534 835 906 102 1,424 111 868 916 1,341 806 a) Use a computer regression package, such as the excel Solver of Excel, to estimate the following short-run cubic production function: Q = AL³ + BL² b) What are the estimated total, average, and marginal product functions from your regression results in Part a? c) Beyond what level of labor employment does the law of diminishing returns set in? Beyond what level of output? Mercantile Metalworks, LLC. manufactures wire carts for grocery stores. The production manager at Mercantile wishes to estimate an empirical production function for the assembly of carts using the following time-series data for the last 22 days of assembly operations. L is the daily number of assembly workers employed, and Q is the number of carts assembled (completely) for that day. Mercantile pays its assembly workers AED160 per day in wages and benefits. Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Number of workers L 15 21 24 32 36 38 18 18 EX 41 36 44 40 21 27 20 15 36 14 24 25 32 21 Number of carts assembled Q 75 897 1,280 1,251 1,315 2,837 590 129 1,572 2,005 1,024 2,165 1,534 835 906 102 1,424 111 868 916 1,341 806 a) Use a computer regression package, such as the excel Solver of Excel, to estimate the following short-run cubic production function: Q = AL³ + BL² b) What are the estimated total, average, and marginal product functions from your regression results in Part a? c) Beyond what level of labor employment does the law of diminishing returns set in? Beyond what level of output?
Expert Answer:
Related Book For
Operations management processes and supply chain
ISBN: 978-0136065760
9th edition
Authors: Lee J Krajewski, Larry P Ritzman, Manoj K Malhotra
Posted Date:
Students also viewed these accounting questions
-
Using the following time series data of U.S. new car sales ($ millions), respondto the following items. Find Monthly Retail Trade Report, then select Time Series/Trend Charts to find the data for...
-
The production manager at Sunny Soda, Inc., is Interested in tracking the quality of the company% 12-ounce bottle filling line. The bottles must be filled within the tolerances set for this product...
-
The production manager at Landis Corp. has the following information available about some of the costs in her department. Her department produces only one product, and she has determined that machine...
-
A module can be considered a(n) object or unit that can be combined or bound together to form a application. a. Dependent, big and complex b. Dependent, small and easier c. Independent, big and...
-
The American textile industry has moved much of its operations offshore in the pursuit of lower labor costs. Over the past 50 years, textile imports have risen from 2% of all textile production to...
-
Discuss the potential issues arising for an entity if it takes a budgetary approach in which budgetary data are imposed on business unit managers by the CEO. Contrast this with an approach whereby...
-
The following note transactions occurred during the year for Towne Company: Nov. 25 Towne issued a 90 -day, nine percent note payable for \(\$ 8,000\) to Hyatt Company for merchandise. Dec. 7 Towne...
-
Green Valley issued $ 20,000,000 of general obligation bonds to construct a multipurpose arena. These bonds will be serviced by a tax on the revenue from events held in the arena and will mature in...
-
Each business meeting with a prospective client is an opportunity to secure the sale. What should a professional salesperson make sure you do before the end of each meeting? Question 1 0 options:...
-
1. Which process should VBB choose to produce?? 2. How much would VBP be willing to pay for the testing that is currently offered, for each batch?? 3. Would we be considered a perfect test, at twice...
-
Folk Furniture Company manufactures and sells oak tables and chairs. Price and cost data for the furniture follow: Tables Chairs Sales Price $1,200 $50 Variable manufacturing costs 924 11 Sales...
-
Mega Sports Agency represents baseball players. Mega Agency collects commissions from each player in the amount of 5% of fees earned by its clients from major league baseball teams and 15% of fees...
-
Crystals of Sodium Nitrate Na*(NO3) are trigonal with space group R-3c. When referred to a non primitive hexagonal lattice, the unit cell has a = 5.071 and c= 16.82. There are 6
-
Cho Wang handwrote a three-page will in pencil. At the end of the business day, he took the will to an attorney and asked that it be typed. Since Cho mentioned that he was leaving on a vacation and...
-
Gail Trevino expects to receive a $ 5 8 0 , 0 0 0 cash benefit when she retires five years from today. Ms . Trevinos employer has offered an early retirement incentive by agreeing to pay her $ 3 8 0...
-
hi this task is already on cheg with these backgrounds . My questions are only change. please help me out as soon as possible. It is due tommorow MYESC Faculty & Staff - Policies & Resources - Help ...
-
Discuss the differences and similarities between Title VII and Title IX. How is each applied to an athletic situation?
-
A firm has the following balance sheet: Assets Cash Accounts receivable Inventory Plant and equipment $ 15,000 150,000 92,000 170,000 $427,000 Liabilities and Equity Accounts payable Long-term debt...
-
Paula Caplin is manager of a major electronics repair facility owned by Fisher Electronics. Recently, top management expressed concern over the growth in the number of repair jobs in process at the...
-
Three employees in the maintenance department are responsible for repairing the video games at Pinball Wizard, a video arcade. A maintenance worker can fix one video game machine every B hours on...
-
Refer to the problem chart for the automobile oil change in solved problem 2. Calculate the annual labor cost if: The mechanic earns $40 per hour (including variable fringe benefits). The process is...
-
Give one example each of when an auditor might render an unqualified opinion with an explanatory paragraph, a qualified opinion, and an adverse opinion. When might a disclaimer be an acceptable...
-
Assume the successor auditor requests permission from a potential client to discuss with the predecessor the reasons and circumstances for the firms withdrawal from the engagement. What ethical...
-
Assume a local health club, Texas Two-Step (TTS), records 100 percent of amounts received from annual membership fees in the month the cash is received, which is the first month of the new year. The...
Study smarter with the SolutionInn App