Annual Production (In Millions) of Computer Chips in a Large

question 91

Essay

Annual production (in millions) of computer chips in a large electronics company was recorded, as shown below. $$\begin{array} { | c | c c | } \hline \text { Year } & t & \text { Production } \\\hline 1990 & 1 & 26 \\1991 & 2 & 23 \\1992 & 3 & 21 \\1993 & 4 & 25 \\1994 & 5 & 32 \\1995 & 6 & 38 \\1996 & 7 & 43 \\1997 & 8 & 36 \\1998 & 9 & 29 \\1999 & 10 & 25 \\\hline\end{array}$$ a. Calculate the percentage of trend for each time period.
b. Plot the percentage of trend.
c. Describe the cyclical effect (if there is one).

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Definitions:

Isoquant

An isoquant is a curve depicting all combinations of inputs which produce the same level of output, used in the study of production theory.

Production Functions

A formula that relates the output of goods and services to the inputs used in their production.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts and/or the physical factors of production.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts and/or physical factors of production.