Epren manufactures engine parts for an automobile manufacturer.

Please see the attached file for full problem description. --- Epren manufactures engine parts for an automobile manufacturer. It operates 2 plants, which have the following production functions: Plant A: Qa = 30Sa – 0.25 Sa2 Plant B: Qb = 40Sb – 0.50Sb2 where Qa is the unit output from plant A, Qb is the unit output from plant B and Sa and Sb are the units of the variable factor steel used, respectively at plant A and B. a. Suppose the steel availability is 30 units. What is the optimal allocation between the two plants? b. A sudden supplier problem reduces availability of steel to plant B by 10 units. How should Epren reallocate steel between the plants? Explain.... click for more

3968-econ

1. What does equilibrium mean in economics? Illustrate the situation of shortage and surplus in context of equilibrium point with the help of a graph. 2. What does the term ?CETERIS PERIBUS? mean? Explain briefly its implications. 3. Explain Production Possibility Frontier. What is its shape in case of perfect substitutes?

Consumer Price Index (CPI)

1. Suppose that 1967 is the base year for the Consumer Price Index (CPI) and in 1988 the CPI is 340. What does this “340” mean? a.) What cost $100 in 1967 will cost 340 times as much in 1988. b.) What cost $100 in 1967 will cost $340 more in 988. c.) What cost $100 in 1967 will cost 100/340 (or .2941) times as much in 1988(that is, it will cost $29.41 in 1988). d.) What cost $100 in 1967 will cost $240 more in 1988. 2. Suppose the government decides that every family should own its own home. To bring this about, the government decides to subsidize the home-construction industry by giving the home-construction companies $10,000 for every house that they build. As a result of this... click for more

Formulate the linear programming problem.

4. A sales manager seeks to optimize her advertising budget. Her goal is to obtain 160 million "Exposures" (readers and/or viewers exposed to an ad for the company). Seeking a younger, affluent audience, the firm would like at least 50 million of the exposures to be persons between the ages of 25 and 45. In addition the firm would like at least half of all exposures to be persons with an income over $35,000 per year. Each magazine ad (M) costs $175,000 and reaches an audience of 10 million persons. TV ads (T) each cost $300,000 to produce and air, and reach an audience of 20 million persons. About 75% of magazine readers are persons in the target income bracket, and about 60% of the re... click for more

Managerial Economics Calculus Problems

I need some assistance with sample Managerial Economics Calculus Problems and Multiple choice questions. Please state formula.