Answer: Management information system
Explanation:
The information system that reflect the strategic decisions that Jenson makes as a senior manager is the management information system.
Management Information System is simply referred to an information system that is used to make decisions and also used for analysing and coordinating information in the organization. It studies the relationship and interaction that exist between the people and the organization.
The other-things-equal assumption, ceteris paribus refers to the notion that all variables except those under immediate consideration are held constant for a particular analysis.
<u>Explanation:</u>
"Holding other things constant" refers to the term Ceteris paribus. It mainly considers the one statement "all thing being equal" . In economic field, it takes only one variable into account and determines the effect of that one variable in economics holding all the other variables as a constant.
Whenever an argument occurs related to cause and effect then this concept comes into play. For instance this concept says that increasing the wage of an employee can reduce marginal cost, increase money supply, improves profits of the company he is working,etc. Thus, it considers the effect of only the wage of an employee.
Answer:
If the Cobb Douglas production funtion is
This function is homogeneous of degree 3: To understand that, we first must know that a function f(K,L) is homogeneous of degree "m" if . Intuitively, this means that, when you increase your productive factors (in this case, we are talking about a production function), by a factor "", your output increases by . Depending on the value of m, the function will exhibit increasing returns to scale (m>1), decreasing returns to scale (m<1) or returns to scale equal to 1 (when m=1).
- In this case, . Applying distributive power's property, we get .
- Because of power property, we can associate terms and get (remember that .
- Finally, . In this case the function is homogeneous of degree 3 because when multiplying K and L by , the function as a whole is multiplied by .
Euler's Theorem: this theorem states that, if a function is homogeneous of degree "m", the following must hold: .
- To prove it, we should then calculate the partial derivative of Q with respect to L and K respectively, and apply the previous definition to see if the statement holds.
- Applying Euler's Theorem then means should be equal to (remember that in this case, m=3, see previous exercise).
- Solving
- Then the Euler's Theorem is verified!