25esA firm's long run total costs are given in the table below.Instructions: Round your answers to two decimal places.a. Fill in the long run average total cost column.Output123stin567Long run totalcost ($)18242830344028348(Click to select)6380Long run averagetotal cost ($)Kb. Over what production range does this firm experience economies of scale?(Click to select)c. Over what production range does this firm experience constant returns to scale?(Click to select)d. Over what production range does this firm experience diseconomies of scale?

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25 es A firm's long run total costs are given in the table below. Instructions: Round your answers to two decimal places. a. Fill in the long run average total cost column. Output 0 1 2 3 4 5 6 7 8 Long run total cost ($) 18 24 (Click to select) 28 30 34 40 48 63 80 Long run average total cost ($) b. Over what production range does this firm experience economies of scale? (Click to select) c. Over what production range does this firm experience constant returns to scale? (Click to select) d. Over what production range does this firm experience diseconomies of scale?

25 es A firm's long run total costs are given in the table below. Instructions: Round your answers to two decimal places. a. Fill in the long run average total cost column. Output 0 1 2 3 4 5 6 7 8 Long run total cost ($) 18 24 (Click to select) 28 30 34 40 48 63 80 Long run average total cost ($) b. Over what production range does this firm experience economies of scale? (Click to select) c. Over what production range does this firm experience constant returns to scale? (Click to select) d. Over what production range does this firm experience diseconomies of scale?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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© Macmillan Learning The figure depicts the long-run average total cost curve for Magma Motors. If this firm is currently producing 11,000 cars per year, what does it experience if it increases output by 1,000 cars? Figure: Long-Run Average Total Cost Curve for Magma Motors Cost (per car) $5,000 4,000 0 Long-run average total cost $10,000 11,000 12,000 Quantity economies of scope economies of scale minimum efficient scale diseconomies of scale
mework 6 i 1 Saved nics Game Obituary Project Help Save & Exit Submit a. Complete the following cost schedule by computing marginal cost, average fixed cost, average variable cost, and average total cost. Instructions: Round your responses to the nearest whole number. Rate of nts Total Cost Output Marginal Cost Average Average Average Fixed Cost Variable Cost Total Cost 0 $600 Print 1 800 2 1,050 3 1,400 4 5 1,800 2,300 Mc Graw Hill b. Use the cost data to plot the average total cost (ATC) and marginal cost (MC) curves on a graph. Instructions: Use the tools provided 'ATC' and 'MC' to draw each curve point by point (plot 5 points total for each curve). Round your points for ATC up to the nearest $25. Q Search Prev 1 of 4 Next > 3/
2. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table. Locations A B C D Fixed Cost 60,000 80,000 100,000 130,000 Variable Costs/units 30 20 15 10 a. i. Write an equation to represent the total costs for each location.ii. Draw the total costs lines for each location on the same axes. (Use output ranges of 2000, 4000, 6000, 8000 etc. and intervals of $50,000 on the Y axis. iii. Over what range of output is location A the most preferred location?iv. Over what range of output is location B the most preferred location?v. Over what range of output is location C the most preferred location?
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c. Does the firm operate in the short run or long run? Why? d. What is the efficient scale of the firm?
Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's short-run average total cost (SRATC) each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Number of Factories Q = 100 1 74°F Clear 2 3 440 620 800 Q = 200 280 380 480 Average Total Cost (Dollars per bike) Q = 300 Q = 400 240 320 240 320 240 240 Q = 500 480 380 280 Q = 600 800 620 440 Suppose Ike's Bikes is currently producing 100 bikes per month in its only factory. Its short-run average total cost is $440 per bike. Suppose Ike's Bikes is expecting to produce 100 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using one factory On the following graph, plot the three SRATC curves for Ike's Bikes from the…
SECTION B: IDENTIFICATION OF COST CURVES From Figure 1 Identify the cost curves 41, 42, 43, and 44. 41 Cost 42 43 44 Quantity of output Figure 1: Cost curves
Use the following information: Cost Volume $15,000 3,000 $18,000 4,000 $20,000 7,000 The fixed cost element for the firm is a. $11,250 b. $10,250 c. $12,250 d. $11,350
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Average cost (cents per copy) 9 10 2 單選: 0 a. 3.7 b. 5 c. 4000 - d. 4 e. 16 f. 8.5 g. 16000 ATC₁ 2 What is Dustin's long-run average cost if the output is 3,000 copies per day? 6 8 10 Quantity (thousands of copies per day) ATC2 ATC3 ATCA 4
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