Assignment on Managerial Economics Numerical Question Help

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Economics

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3.Crew Brew produces a popular brand of beer in its mini-brewery located on a small river in Wisconsin. It uses a special formula, combined with the fresh water from the local stream, to produce a drink popular with local folks and tourists who visit during the summer fishing season, and autumn deer hunting season. Crew’s production function is: Q = 50K + 50L, where Q = barrels of beer, K = units of capital, and L = units of labor. (a) Suppose that capital can be purchased for $8 per unit, and labor costs $6 per unit. What is the optimal combination of inputs for the firm to employ? (b) Suppose that the cost of inputs changes to $7 for a unit of capital, and $9 for a unit of labor. What is the new optimal combination of inputs?


4.

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4. (20 points). 4. Enpar manufactures engine parts for an automotive manufacturer. It operates two plants, A and B, which have the follow- ing production functions: QA = 30S A – .2552 and QB = 40SB –.55, where QA and QB denote the outputs of engine parts from each plant and SA and SB denote the amounts of steel used in each plant. Suppose that total steel availability is 40 units. What is the optimal allocation of steel between the two plants?
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Hello there, Tried to finish as fast as possible. I am attaching to this message a Word file entitled " Managerial Economics" which contains the solving to :Exercise 3 (A) and (B)Exercise 4I included all the explanations and calculus in the file so there should be no difficulties in understanding how I reached the final answer.Looking forward to hearing from you. It was my pleasure working on this task and looking forward to working with you in the near future wit...


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