Answer:
Part A:
Required workers=20.833≅21
Part B:
Each worker's productivity=2.0833 parts/hour
Part C:
Multifactor productivity=0.0832 Parts/$
Explanation:
Part A:
Total parts produced =100,000
Workers required= Total parts/(Parts per hour* hours per shift*Total Shifts)
Workers required=20.833≅21
Part B:
Individual worker productivity:
Part C:
Total material costs= $10*100,000=$1,000,000
Capital cost= $100,000
Total labor expenses=
Total labor expenses=$100,800
Multifactor productivity=Total Parts/(Total material costs+capital costs+Total labor expenses)
Answer:
setup cost = $1.75
setup time = 2.625 min
Explanation:
given data
The firm operates for 250 days annually.
Annual demand is 22,000.
Daily demand is 88.
Daily production stands at 250.
Desired lot size is set at 63 (equivalent to 2 hours of output).
Holding costs are $40 per unit each year.
To determine
the setup cost and setup time
solution
The setup cost is calculated as
setup cost = 
......................1
Here, Q represents the desired lot size, H is the holding cost, d denotes daily demand, D is annual demand, and p is the daily output.
Plugging in the values,
setup cost = 
setup cost = 
setup cost = $1.75
Next,
the setup time is given by
setup time = 
....................2
setup time = 
setup time = 2.625 min
Answer:
DeShawn should not continue offering the engine detailing service
Explanation:
Given data
Cost = $40
Charge = $75
Total price = $90
Additional charges amount to $20
To determine
Whether DeShawn should proceed with the offer
Solution
Here, we know DeShawn's marginal benefit is Marginal benefit = total price - charge
Marginal benefit = 90 - 75
Marginal benefit = $15
Given that the additional charge is $20
Thus,
the marginal cost exceeds the marginal revenue
Hence, DeShawn should not continue the engine detailing service
Answer:
a. 30 units of corn and 30 units of wheat.
Explanation:
In a scenario involving two products across two nations, international trade fosters specialization. Each country focuses on producing the good for which it has a comparative advantage. In this context, Freedonia will solely grow corn while Sylvania will exclusively cultivate wheat. Each nation will continue to consume its own amount of these goods, but will trade surplus products for the other's goods. Freedonia's workforce will be entirely dedicated to corn production, yielding 60 units of corn annually with 10 workers (6 units each). Conversely, Sylvania will employ 10 workers to produce 60 units of wheat annually.
However, Freedonia will continue to consume 30 units of corn, allowing for 30 units available for trade with Sylvania. Similarly, Sylvania will also maintain its consumption at 30 units of wheat, resulting in 30 units of wheat available for trading with Freedonia.
If prices are equal for both products, Ricardo’s theory suggests total consumption will rise in both nations, benefiting consumers. Freedonia will still consume 30 units of corn while also acquiring 30 units of wheat through trade. Consequently, consumers will be better off, gaining 20 additional units of wheat compared to before, without sacrificing any corn units.
