1.The Accuweather Corporation manufactures barometers and thermometers for weather forecasters. In an attempt to forecast its future needs for mercury, Accuweather's chief economist estimated average monthly mercury needs as:

N = 500 + 10X

where N = monthly mercury needs (units) and X = time period in months (January 2008= 0). The following monthly seasonal adjustment factors have been estimated using data from the past five years:

Month Adjustment Factor

January 15%

April 10%

July 20%

September5%

December 10%

(a) Forecast Accuweather's mercury needs for January, April, July, September, and December of 2010.

(b) The following actual and forecast values of mercury needs in the month of November have been recorded:

Year Actual Forecast

2008 456 480

2009 324 360

2007 240 240

What seasonal adjustment factor should the firm use for November?

2.A certain production process employs two inputs--labor (L) and raw materials (R). Output (Q) is a function of these two inputs and is given by the following relationship:

Q = 6L²R².10L³R³

Assume that raw materials (input R) are fixed at 10 units.

(a)Determine the total product function (TP_L) for input L.

(b)Determine the marginal product function for input L.

(c)Determine the average product function for input L.

(d)Find the number of units of input L that maximizes the total product function.

(e)Find the number of units of input L that maximizes the marginal product function.

(f)Find the number of units of input L that maximizes the average product function.

(g)Determine the boundaries for the three stages of production