Optimal Input Mix

question 22

Essay

Optimal Input Mix. Third World Solutions, Inc., has designed a manual water pump that attains a flow rate of 5 gallons per minute using 1 manpower. If the diameter of the pump were increased by 1 inch, throughput would increase 4 gallons per minute. Alternatively, throughput could be increased by an additional 8 gallons per minute using the original pump diameter with one hydraulic chamber.
A. Estimate the marginal rate of technical substitution between hydraulic chambers and pump diameter.
B. Assuming the cost of additional hydraulic chamber size is $5 per chamber and the cost of a larger pump diameter is $2.50 per inch, does the original design exhibit the property required for optimal input combinations? If so, why? If not, why not?

Identify the impacts of bicultural and multicultural identities on personal development.

Comprehend the role of norms in evaluating social and personal success.

Grasp the influence of societal views and self-perceptions on minority groups' identity.

Understand how race, ethnicity, and gender affect adolescents' self-esteem and identity.

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Definitions:

Average Inventory

The mean value of inventory held over a certain period of time, calculated to help businesses understand inventory turnover.

Factory Overhead

All indirect costs associated with manufacturing, including utilities, maintenance, and management salaries.

Payroll Taxes

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

Indirect Labor

Labor costs associated with the production process that cannot be directly linked to specific units or products, such as maintenance personnel salaries.