ME-Problems-Production
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ME-Problems-Production

Course Number: MGT 238, Spring 2012

College/University: Abu Dhabi University

Word Count: 1463

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Problems on theory of production (Chapter 6) 1. A Company has an assembly line of fixed size A. Total output is a function of the number of workers as shown in the following schedule: No. of Workers (L) 0 Total Output (Q) 0 1 10 2 3 30 50 4 56 5 59 6 7 60 60 8 58 (a) Determine schedules for marginal productivity of labor and average productivity of labor. (b) Determine the rage of employment that...

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1 Problems on theory of production (Chapter 6) 1. A Company has an assembly line of fixed size A. Total output is a function of the number of workers as shown in the following schedule: No. of Workers (L) Total Output (Q) 0 0 1 10 2 30 3 50 4 56 5 59 6 60 7 60 8 58 (a) Determine schedules for marginal productivity of labor and average productivity of labor. (b) Determine the rage of employment that show the three stages of production (c) Indicate the level of employment at which the law of diminishing returns first occurs. (d) Suppose the market price of the output $15 and the wage rate is $90, how many workers would this firm hire? What if the market price decreases to $10? (e) Suppose the market price increases to $25, what is the highest wage rate the firm would be willing to pay to employ 4 units of labour? 2. A certain production process employs two inputs ⎯ labor (L) and raw materials (R). Output (Q) is a function of these two inputs and is given by the following relationship: Q = 6L 2 R 2 − .10L 3 R 3 Assume that raw materials (input R) are fixed at 10 units. (a) Determine the total product function (TP L ) for input L. (b) Determine the marginal product function for input L. (c) Determine the average product function for input L. (d) Find the number of units of input L that maximizes the total product function. (e) Find the number of units of input L that maximizes the marginal product function. (f) Find the number of units of input L that maximizes the average product function. (g) Determine the boundaries for the three stages of production. 3. Indicate whether each of the following statements is true or false. (a) If the marginal product of capital increases as capital usage grows, the returns to capital are decreasing. (b) Marginal revenue product measures the output gained through expanding input usage.

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Abu Dhabi University - MGT - 238
Problems on Perfect Competition & Monopoly1. True and False questions. Indicate whether each of the following statements is trueor false and why.(a) In long-run equilibrium, every firm in a perfectly competitive industry earns aneconomic profit.(b) P
Abu Dhabi University - MGT - 238
CHAPTER NINEMONOPOLYThis chapter examines how a market controlled by a single producerbehaves. What price will a monopolist charge for his output? How much willhe produce?The basic characteristics of monopoly market structure are summarized asfollow
Abu Dhabi University - MGT - 238
CHAPTER EIGHTPERFECT COMPETITIONFour Basic Market TypesHow firms establish their price and output levels in order to achieve theirobjective of profit maximization (or loss minimization)?The answer to this depends on the market structure in which the
Abu Dhabi University - MGT - 238
CHAPTER SEVENTHE THEORY AND ESTIMATION OF COSTThe production decision has to be based not only on the capacity toproduce (the production function) but also on the costs of production (thecost function).Firms seeking profit maximization are concerned
Abu Dhabi University - MGT - 238
CHAPTER SIXTHE THEORY AND ESTIMATION OF PRODUCTIONFor the manager of a profit-maximizing firm, seeking the maximum totalrevenue may not ensure attaining maximum profits. Profit is the differencebetween total revenues and total costs.Total revenue dep
Abu Dhabi University - MGT - 238
CHAPTER FIVEDEMAND ESTIMATIONEstimating demand for the firms product is an essential and continuingprocess. After all, decisions to enter new market, decisions concerningproduction, planning production capacity, and investment in fixed assetsinventor
Abu Dhabi University - MGT - 238
CHAPTER THREEDEMAND AND SUPPLYThis chapter presents a brief review of demand and supply analysis.The materials covered in this chapter provide the essentialbackground for most of the managerial economic problems to bestudied in the coming chapters.T
Abu Dhabi University - MGT - 238
CHAPTER FOURELASTICITYWe have seen in chapter three how a change in the price of the good results inchange in quantity demanded of that good in the opposite direction (movementalong the same demand curve); and how a change in income results in achang
Abu Dhabi University - MGT - 238
ECON340: Managerial EconomicsCh.1Dr. Mohammed AlwosabiEconomics and Managerial Decision Making Managerial economics is one of the mostimportant and useful courses. It will provide you with a foundation of atheoretical framework for studying otherc
Abu Dhabi University - MGT - 238
ECON340: Managerial EconomicsMonopolyBasic Characteristics of Monopoly MarketStructure1. A single firm produces the entire marketsupply of a particular good or servicewhich has no close substitutes.2. Since there is only one firm, then the firmis
Abu Dhabi University - MGT - 238
ECON340Ch.8: Perfect CompetitionDr. Mohammed AlwosabiFour Basic Market Types How firms establish their price and outputlevels in order to achieve their objective ofprofit maximization (or loss minimization)? The answer to this depends on the market
Abu Dhabi University - MGT - 238
ECON340: Managerial EconomicsCh.6: ProductionDr. Mohammed AlwosabiThe Production Function: The production function is the technicalrelationship, which shows the maximumattainable production levels using differentcombinations of input at a given sta
Abu Dhabi University - MGT - 238
ECON340: Managerial EconomicsCh. 5Dr. Mohammed Alwosabi Estimating demand for the firms product isan essential and continuing process. After all, planning production capacity, andinvestment in fixed assets, should all bebased on a precise estimate
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ECON 340: Managerial EconomicsMath ReviewREVIEW OFMATHEMATICAL CONCEPTS1 We express the change in the variable inresponse to a change in another variablein term of a function A function refers to the relationshipbetween one (dependent) variables
Abu Dhabi University - MGT - 238
CHAPTER TWOCHAPTER TWOTHE FIRM AND ITS GOALSDr. Mohammed Alwosabi1The Firm The firm is an organization, which bringsfirm an organization which bringsresources together to produce a good orservice that is demanded in the marketservice that is dem
Abu Dhabi University - MGT - 238
CHAPTER ONEINTRODUCTIONTOMANAGERIAL ECONOMICSDr. Mohammed Alwosabi1Economics and Managerial Decision Making Managerial economics is one of the mosteconomics is one of the mostimportant and useful courses. From its name, managerial economics is a
Abu Dhabi University - MGT - 238
CHAPTER 9PRICING PRODUCTS: PRICING CONSIDERATIONSAND STRATEGIESa. All profit and nonprofit organizations must set prices on their products andservices.b. Price is the amount of money charged for a product or service or the sum of thevalues that cons
Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
CHAPTER 12INTEGRATED MARKETING COMMUNICATIONModern marketing calls for more than just developing a good product, pricing itattractively, and making it available to target customers. Companies must alsocommunicate with their customers and there should
Abu Dhabi University - MGT - 238
CHAPTER 8NEW PRODUCT DEVELOPMENT AND PRODUCTLIFE-CYCLE STRATEGIESCHAPTER OVERVIEWOrganizations must develop new products and services in order to prosper and compete.A company has to be good at developing new products to attract attention in themark
Abu Dhabi University - MGT - 238
CHAPTER 7PRODUCT, SERVICES, AND BRANDING STRATEGIES1. What Is a Product?a. A product is anything that can be offered to a market for attention, acquisition,use, or consumption and that might satisfy a want or need. It includes physicalobjects, servic
Abu Dhabi University - MGT - 238
CHAPTER 6MARKET SEGMENTATION, TARGETING, AND POSITIONING1. Introductiona. Companies today recognize that they cannot appeal to all buyers in themarketplace, or at least not to all buyers in the same way.1). Buyers are too numerous, too widely scatter
Abu Dhabi University - MGT - 238
CHAPTER 5CONSUMER AND BUSINESS BUYER BEHAVIORThis chapter explores the dynamics of consumer and business buying behavior and theconsumer and business markets. Markets (and those which they serve) have to beunderstood before marketing strategies can be
Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
:Consumer Buying Behavior.The buying behavior of people who buy goods and services for personal use:Consumer market.All people who buy goods and services for personal use:Model of Consumer BehaviorMarketing stimuli : Consists of product , price , pro
Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
Marketing Environment :The actors and forces outside the organization that affect managements ability to build and maintainrelationships with target market . It offers both opportunities and threats .Environmental scanning :The process of continually
Abu Dhabi University - MGT - 238
Marketing :It is social and managerial process by which individuals and groups get what they need andwant thought creating and exchanging value with others .Marketing process :1. Understanding the marketplace and consumer needs and wants .2. Designin
Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
:Marketing EnvironmentThe actors and forces outside the organization that affect managements ability to build and maintain relationships.with target market . It offers both opportunities and threats:Environmental scanningThe process of continually get
Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
:MarketingIt is social and managerial process by which individuals and groups get what they need and want.thought creating and exchanging value with others:Marketing process.Understanding the marketplace and consumer needs and wants.Designing a custo
Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
Supply ChainsUpstream PartnersDownstream PartnersMarketing ChannelChannel Members Add ValueNumber of Channel LevelsTypes of Marketing ChannelsDirect marketing channelsIndirect marketing channelsTypes of FlowsChannel Design DecisionsAnalyzing Co
Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
The Nature of Personal SellingThe Role of the Sales ForceDirect MarketingThe New Direct-Marketing ModelBenefits of Direct MarketingBenefits to BuyersBenefits to SellersCustomer DatabasesDirect Marketing FormsTelephone marketingDirect-mail market
Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
Dr. Mohammed AlwosabiEcon 140 Ch. 11Notes on Ch. 11PERFECT COMPETITIONThis chapter examines the basic elements of perfect competition and thecompetitive firm. It examines how businesses with a given market price makeproduction decisions that help ma
Abu Dhabi University - MGT - 238
Dr. Mohammed AlwosabiEcon 140 Ch.10Notes on Chapter 10OUTPUT AND COSTSPRODUCTION TIMEFRAMEThere are many decisions made by the firm. Some decisions are majordecisions that are hard to reverse without a big loss while other decisions aresmall ones t
Abu Dhabi University - MGT - 238
Dr. Mohammed AlwosabiECON 140 Ch. 9Notes on Chapter 9ORGANIZING PRODUCTIONFirms differ in the size and in the type of business they are doing but all firmsperform the same basic economic functions.A firm is an institution that hires factors of produ
Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
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Abu Dhabi University - MGT - 238
Dr. Mohammed AlwosabiEcon 140 Ch.3Notes on Chapter 3DEMAND AND SUPPLYPRICES IN THE MARKETThis chapter explains how prices are determined and how markets guide andcoordinate choices.A market is a network or an arrangement that enables buyers and sel