Wonder Widgets Inc. has 3 plants producing their De-lux Wonder Widget (DWW). Plant A produces 75% of all DWW, plant B 20%, and plant C the remaining 5%. 6% of Plant A's production is defective, 5% of plant B's production is defective, and 1% of plant C's production is defective. (a) What percent of the total production of DWW is defective? (b) If a DWW is defective, what is the probability that it was produced in plant A? Electron Control, Inc., a manufacturer of voltage regulators for industrial power generators, currently consolidates production at a single plant in Chattanooga, Tennessee, but a multiplant alternative to centralized production is being considered. Estimated demand, marginal revenue, and single-plant production cost curves for the firm are 

P = 515 0.005Q

MR = 515 0.01Q

TC = 160,000 + 35Q + 0.01Q2

MC = 35 + 0.02Q

A) Find the single-plant profit-maximizing level of output.

B) Find the minimum efficient scale of the single-plant operation.

C) Assuming that multiple smaller plants production is possible under the same cost conditions described above, find the profit-maximizing multiplant level of output.

D) Given your answers to parts B and C, how many number of plants should you suggest?

Perpetual plastic plant makers cost $200 each. The number of plants that your firm expects to produce each year for each level of capital stock is as follows:

Machines: 0 1 2 3 4 5

Plant Production: 0 250 400 500 565 600

The plants sell for $1 each and your firm faces no other costs. The real interest rate is 10% and the depreciation rate of capital is 15%. There is a 20% tax on your firm's revenues from selling these plants. Use these numbers to answer the following 4 questions: 1. What is the firm's tax-adjusted user cost of capital? 2. What is the marginal product of capital for the fourth machine? 3. How many machines should the firm buy? 4. What is the profit after deducting taxes, interest, and depreciation?

In a small open economy

Sd = $20 billion + ($100 billion)?r

Id = $30 billion - ($100 billion)?r

Y = $70 billion

G = $20 billion

r w = 0.04

5. Calculate the current account balance.

6. Calculate net exports.

7. Calculate desired consumption.

8. Calculate absorption.

A country has the per-worker production function yt = 5kt 0.5, where yt is output per worker and kt is the capital-labour ratio. The depreciation rate is 0.2 and the population growth rate is 0.05. The saving function is St = 0.2yt, where St is total national saving and Yt is total output.

9. What is the steady-state value of the capital-labour ratio?

10. What is the steady-state value of output per worker?

11. What is the steady-state value of consumption per worker?