Production Price Analysis and Estimation Applied Problems
1 . Jennifer Transportation Company operates a large machine transportation organization in Arizona that carries locally grown fresh vegetables to San Diego, California. The corporation owns your five large rigs and hires local individuals paid fixed salaries monthly, regardless of the number of trips or perhaps tons of cargo that each drivers transports monthly. The below table gives details about the amount of drivers and the total shipment transported by the company for different staff levels. Motorists employed| Total Cargo Moved (tons)
Motorists (V)| Total Cargo (TP)| пЃ„V| пЃ„TP| MP=пЃ„пЃ”P/пЃ„V| AP=TP/V| 1| 5| | | | five
2| 12| 1| 7| 7| 6th
3| 21| 1| 9| 9| several
4| 32| 1| 11| 11| 8
5| 40| 1| 8| 8| almost 8
6| 46| 1| 6| 6| several. 67
7| 51| 1| 5| 5| 7. 30
8| 50| 1| -1| -11| 6th. 25
a. В В В В В В Which inputs are fixed and which are adjustable in the production function of Jennifer Trucking Firm? Over what ranges do there seem to be increasing, frequent and/or decreasing returns for the number of motorists employed? The inputs which can be variable from the manufacturing function of Jennifer Trucking Company are definitely the amount of trips the drivers consider and how very much they haul. The advices that are fixed are the driver's monthly earnings. It looks like drivers 1, two, & 3 are providing a decreasing return because of their low numbers of ton provided. Drivers your five, 6, several, & almost eight appear to be increasing their comes back due to their large tonnage delivery. Driver some seems to be regular.
b. В В В В В What number of drivers appears to be most efficient when it comes to output per driver? The numbers of motorists that is very much most efficient in terms of output every driver happen to be drivers your five, 6, 7 & almost 8. Their total cargo transferred is quite close in tonnage. c. В В В В В В What number of drivers appears to minimize the limited cost of transport assuming that every drivers are paid the same salary? The...