Production and Cost
Production and Cost
The following post has three assignments namely;
1.Production and Cost
1. Consider the production function q = L1/4E1/4K1/4.
a. Is this production function subject to diminishing marginal returns to labor? Show your logic
b. Showing your logic, find its returns-to-scale.
2. Consider the same production function, q = L1/4E1/4K1/4, used in (1) above. K is a fixed input (K = K). Let
the input prices be represented by w, u, and r, respectively.
a. Write the Lagrangean function to minimize variable cost, wL + uE, subject to the production
constraint. The fixed value of K can simply be substituted into the production function: q =
L1/4E1/4K1/4. Note that variable cost is the sum of the expenditures on variable inputs, wL + uE, while
short-run total costs = variable cost + fixed cost = wL + uE + rK.
b. Derive the first-order conditions.
c. Solve for the expansion path.
d. Solve for the short-run cost-minimizing demand function for labor and energy. Why are they
e. Solve for the variable cost function (conditional on K)
The late Steve Jobs left behind a fast-growing Apple Inc. Practise a scenario planning technique for Apple:
1. How will the death of Steve Jobs affect Apple as a company? Identify THREE business scenarios that might happen in the next 5 years (best, most likely, worst). Take into consideration both
external influences (economy, technology, globalization, legislation etc.) and Apple’s business environment (suppliers, competitors, customers, senior management, employees etc.).
2. For each scenario, assess the firm’s readiness. What are the challenges faced under each scenario? Identify HR’s strengths and weaknesses in relation to these challenges.
3. For each scenario, identify HR initiatives and programs that must be undertaken to deal with the changes.
4. Prepare a report on the future of the company.
Write a full conference proposal focusing on sharing knowledge
between the PhD holders.
Vision, Mission and objectives
Define all the required resources
Full Agenda (2 Days) including workshops and seminars