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Business, 30.10.2019 02:31 jayleneeurich

Afirm producing desks has to make decisions regarding the following production stages: (i) choice of materials, (ii) cutting and jointing, (iii) painting and finishing, and (iv) labeling and boxin, g materials: the firm has to use 6 blocks of wood and one unit of glue in order to produce a desk. wood and glue cannot be substituted in the production, as they need to be used in the same proportion. the production function is q-mun 16, gf, where w is the quantity of wood and g is the quantity of glue a. what are the returns to scale? b. illustrate the cost minimization problem of this production stage on a diagram where you place wood on the x-axis and glue on the y-axis. show the isoquant and isocost lines when the isoquant correspond to a production level of one desk and the prices of wood and glue are $4 and s1, respectively what is the optimal amount of wood and glue to produce one desk? what is the cost of material for a generic number of desks q? [recall that under constant returns to scale, if the cost of producing 1 units of output is equal to c dollar, then the variable cost of producing q units of output is cgj c. 2 1 cutting and jointing: the firm faces the following production function: q = (kisi where k stands for capital employed in this stage and s represents the amount of skilled workers. the marginal products of s and kare qs = and qk-15(-t respectively. thus, mrtssk- d. what returns does the production function exhibits with respect to s? what returns does s3 2s" the production function exhibits with respect to k? what are the returns to scale?

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