Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 29 Oct 2017 My Price 3.00

Creative Dangles i

(Appendix) Creative Dangles is an earring design and manufacturing company. The production function for earrings is = 25KL, where Q = pairs of earrings per week, K = hours of equipment used, and L = hours of labor. Workers are paid $8 per hour, and the equipment rents for $8 per hour.

a. Determine the cost-minimizing capital labor ratio at this firm.

b. How much does it cost to produce 10,000 pairs of earrings?

c. Suppose the rental cost of equipment decreases to $6 per hour. What is the new cost-minimizing capital-labor ratio?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 29 Oct 2017 07:10 AM My Price 3.00

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