quantity of fish caught for Juan‚ a commercial fisherman. Labor (hours) 1 2 3 4 5 6 Quantity of Fish (pounds) 10 18 24 28 30 32 Marginal Product (pounds) a. Complete the Marginal Product column in the Table. b. Characterize the production function‚ i.e. does the production function display increasing marginal returns‚ diminishing marginal returns‚ etc. c. Using the data above‚ graph Juan’s marginal product curve. Be sure to label the horizontal and vertical axes. Is your graph consistent with your
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processing transactions. For Example if all income-related accounts have the structure 1xxxx‚ all expense-related accounts have the structure 2xxxx‚ all asset-related accounts 3xxxx and all liability accounts 4xxxx‚ then this will help the production of the income statement (all 1xxxx amounts less all 2xxxx amounts) and the statement of financial position (3xxxx as asset amounts and 4xxxx amounts as liabilities). This is particularly needed in computerized accounting systems because
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Introduction to management accounting (14 ed.). Upper Saddle River‚ NJ: Pearson. Marshall‚ D. H.‚ McManus‚ W. W.‚ & Viele‚ D. F. (2004). Accounting: What the numbers mean (6 ed.). New York‚ NY: McGraw-Hill. McConnell‚ C. R.‚ & Brue‚ S. L. (2005). Economics: Principles‚ problems‚ and policies (16 ed.). New York‚ NY: McGraw-Hill. Sevilla‚ A.‚ & Sommers‚ K. (2007). Quantitive reasoning: Tools for today’s informed citizen. Emeryville‚ CA: Key College Publishing.
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the (i) total product‚ (ii) marginal product‚ and (iii) average product functions. c. Determine the boundaries of the three stages of production. Based on the information total product would range anywhere from 3 to 60; marginal product would range from -3 to 14‚ and average product would range from 3 to 9.17. 6. Consider the following short-run production function (where L = variable input‚ Q = output): a. Determine the marginal revenue product function. Total = P x Q = 10(10L - 0.5L^2)
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Despite fierce competition in Europe‚ the major reasons for Frankfurt plant generating profits were 1) constant technical up gradations in the plant to improve the yields and reliability of Release-ease. 2) Manufacturing costs were the least and the production volumes were huge resulting in average yield on raw material A at 98.9%. The Venezuelan plant‚ started in 1964‚ had a no-frills design‚ and no improvements had been made thereafter. The educational qualifications of the Venezuelan operators were
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a major expense to company but would increase its production efficiency and capacity significantly. The retooling option includes shut down of existing Lyra and Libra manufacturing facilities which are only dedicated to respective models and opening of new Lyra facility which is able to manufacture both Lyra and Libra and Libra facility which is able to manufacture all 3 models. The analysis is performed by given plant characteristic (production capacity and associated fixed costs) for existing facilities
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a change to the cost driver. (Horngren‚ Sutton‚ and Stratton p.46) Which means that a fixed cost does not rise with the change is production of your product. A good example of a fixed cost is rent. No matter how many widgets you make (within a relevant range) your rent will not increase. A variable cost‚ on the other hand‚ does change with the amount of production. A good example of this is raw materials. If you make more widgets you will need more raw materials to produce those widgets. So
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Memo ------------------------------------------------- Background Polysar Limited is Canada’s largest chemical company. Its Rubber Group accounts for 46% of Polysar’s sales. The primary products for this group are butyl and halobutyl and the principal customers for these products are tire manufacturers. The rubber Group has two divisions: NASA (North America & South America) and EROW (Europe & elsewhere). There
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II. Suppose the production function for T-shirts can be represented as q = L0.25 K0.75. When K = 1 and q = 2‚ what is the slope of the isoquant? If there is insufficient information to answer the question‚ describe what information is missing. In the short run‚ MPL = 0.25 * (q/L). The change in MP with respect to L equals d(MPL)/dL = -0.25 * q/L2. Thus‚ for all levels of labour hired‚ MPL falls as L increases. III. Consider the following short-run production function: q = 5L2 – (1/3)L3
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Advertising * Insurance * Loan repayment interest * Loan repayment capital * Purchases / VAT on purchases * VAT paid to C & E Variable costs are those costs that vary depending on a company ’s production volume; they rise as production increases and fall as production decreases The variable costs in a business is rent advertising‚ insurance and office supplies‚ Purchases‚ VAT on purchases‚ VAT paid to C & E‚ Energy Usage‚ Distribution Costs and another would be Mortgage which
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