The above contains data on output (Q), labor (L), and capital (K) for Bobcat's Electric Company....

  

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The above contains data on output (Q), labor (L), and capital (K) for Bobcat's Electric Company. Assuming that the price of output is 350,000 per unit. In addition, assuming a labor cost of $25,000 per year and a capital cost of $5,000 per unit, kindly provide your answers to the following questions. Once you have completed your work, save the workbook and submit it through CANVAS. a. What is the average annual compound growth rate for Bobcat's Electric Company from 2004 to 2023? b. What is the cumulative pre-tax profit for Bobcat's Electric Company from 2004 to 2023? c. Based on the data, what is the estimated Cobb-Douglas production function for the company? Is the company an increasing return to scale? Why or why not. d. Using the estimated Cobb-Douglas production function, and given the cost of labor as $25,000 per year and capital as $5,000 per unit, what is the expansion path (optimal mix of labor and capital)? e. Using the estimated production function, determine how much labor and capital should have used each year. f. What is the cumulative pre-tax profit for Bobcat's Electric Company when utilizing the optimal labor and capital as determined in question (e)? How much additional pre-tax profit will the company generate in comparison to the results from question (b)? year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 a 1 1 2 3 3 3 4 4 5 5 6 7 7 8 9 10 10 14 15 19 2 3 5 7 16 7 9 9 10 11 12 15 13 17 17 21 21 30 31 40 K 80 30 160 250 100 120 300 240 320 360 250 480 470 540 420 560 510 650 600 1000 The above contains data on output (Q), labor (L), and capital (K) for Bobcat's Electric Company. Assuming that the price of output is 350,000 per unit. In addition, assuming a labor cost of $25,000 per year and a capital cost of $5,000 per unit, kindly provide your answers to the following questions. Once you have completed your work, save the workbook and submit it through CANVAS. a. What is the average annual compound growth rate for Bobcat's Electric Company from 2004 to 2023? b. What is the cumulative pre-tax profit for Bobcat's Electric Company from 2004 to 2023? c. Based on the data, what is the estimated Cobb-Douglas production function for the company? Is the company an increasing return to scale? Why or why not. d. Using the estimated Cobb-Douglas production function, and given the cost of labor as $25,000 per year and capital as $5,000 per unit, what is the expansion path (optimal mix of labor and capital)? e. Using the estimated production function, determine how much labor and capital should have used each year. f. What is the cumulative pre-tax profit for Bobcat's Electric Company when utilizing the optimal labor and capital as determined in question (e)? How much additional pre-tax profit will the company generate in comparison to the results from question (b)? year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 a 1 1 2 3 3 3 4 4 5 5 6 7 7 8 9 10 10 14 15 19 2 3 5 7 16 7 9 9 10 11 12 15 13 17 17 21 21 30 31 40 K 80 30 160 250 100 120 300 240 320 360 250 480 470 540 420 560 510 650 600 1000

Answer rating: 100% (QA)

SOLUTION To answer the questions we need to perform various calculations based on the given data Lets go through each question step by step a What is the average annual compound growth rate for Bobcat... View the full answer