In an attempt to forecast its future needs for mercury, Accuweather’s chief economist estimated average monthly mercury needs as: AP is equal to zero c. An isoquant derived from quantity and the Greek word iso, meaning equal is a contour line drawn through the set of points at which the same quantity of output is produced while changing the quantities of two or more inputs. An isoquants shows all those combinations of factors which produce same level of output. The incremental change in total output that can be produced by the use of one more unit of the variable input in the production process c. The firm should not make any changes – they are currently efficient d. Using these information and the multiple regression linear sales forecasting model shown above, what would your sales estimate or forecast be for the first quarter of ? In other projects Wikimedia Commons.
Both c and d. In an attempt to forecast its future needs for mercury, Accuweather’s chief economist estimated average monthly mercury needs as: Isoquants are typically drawn along with isocost curves in capital-labor graphs , showing the technological tradeoff between capital and labor in the production function , and the decreasing marginal returns of both inputs. You can add this document to your study collection s Sign in Available only to authorized users. Adding one input while holding the other constant eventually leads to decreasing marginal output, and this is reflected in the shape of the isoquant. The sum of the exponents in the Cobb-Douglas function is 1.
Conversely, if the distance is decreasing as output increases, the firm is experiencing increasing returns to scale; doubling both inputs results in placement on an isoquant with more than twice the output of the original isoquant. The ratio of total output to the amount of the variable input used in producing the output b. Fred uses exponential smoothing to predict revenue in his wood carving business. Add this document to collection s. The higher the isoquant, the higher the production. The only relevant portion of the isoquant is the one that is convex to the origin, part of the curve which is not convex to the origin implies negative marginal product for factors of production.
Sales are seasonal with lower sales during the first quarter and higher sales the rest of the quarters.
Managerial Economics Final Exam
Although the marginal product of an input decreases as you increase the quantity of the input while holding all other inputs constant, the marginal product is never negative in the empirically observed range since a rational firm would never increase an input to decrease output. Decreasing returns to scale The marginal rate of technical substitution may be defined as all of the following except: You can add this document to your study collection s Sign in Available only to authorized users.
Using these information and the multiple regression linear sales forecasting model shown above, what would your sales estimate or forecast be for the first quarter of ? Wikimedia Commons has media related to Isoquants. From Wikipedia, the free encyclopedia. Milner Brewing Company experienced the following monthly sales in thousands of barrels during Janet developed the following quarterly saless forecasting model for her garden center: In the typical case shown in the top figure, with smoothly curved isoquants, a firm with fixed unit costs of the inputs will have isocost curves that are linear and downward sloped; any point of tangency between an isoquant and an isocost curve represents the cost-minimizing input combination for producing the output level associated with that isoquant.
Constant Returns to Scale d. None of the above The combinations of inputs costing a constant C dollars is called: AP is equal to zero c. The Theory of production. None of the above d. Microeconomic Analysis Third ed. Both c and d. In the short-run, one or more of the resources are fixed In the long-run, all the factors are variable The time horizon determines whether or not an input variable is fixed or not The law of diminishing returns is based in part on some factors ar production being fixed, as they are in the short run.
A family of isoquants can be represented by an isoquant mapa graph combining a number of isoquants, each representing a different quantity of output.
The marginal product is defined as: The amount of fixed cost involved. In other projects Wikimedia Commons. All of the above The isoquants for inputs that are perfect substitutes for one another consist of a series of: Using the Equimarginal Criterion, we can’t determine the firm’s efficiency level e. Add Upload document Create flashcards. This page was last edited on 29 Novemberat MP is maximized d.
Managerial Economics Final Exam
What would its earnings forecast be for the second prefect i. The sum of the exponents in the Cobb-Douglas function is 1. He uses exponential weight of 0.
What is the seasonal adjustment factor cor be used in making a May sales forecast?. An isoquants is also known as equal product curve or iso-product curve.
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