ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- Q) Economies of Scale What will happen to the cost of producing Teslas if the Shanghai gigafactory doesn’t achieve economies of scale?arrow_forwardWhich of the following are relevant to a firm’s decision to increaseoutput: (a) short-run average total cost, (b) short-run marginalcost, (c) long-run average total cost? Justify your answer.arrow_forwardCraigsburg enterprises has a fixed cost of 10,000. It’s variable costs are shown in the table below. These costs remain unchanged as market prices change over the next few years:arrow_forward
- The following cost data are for a firm in the short run: Output Total Cost 0 $400 1 500 2 550 3 600 4 650 5 700 What is the firm's average variable cost at an output of 5 units? $30 $60 $120 $140arrow_forwardEngle sells Lebanese sandwiches. The cost of ingredients (bread, meat, spices, etc.) to make a sandwich is US$2. Engle pays her employees US$60 per day. She also incurs a fixed cost of US$120 per day. What is Engle's total cost per day when she does not produce any sandwiches and does not hire any workers? $120 $2 $0 $60arrow_forwardTC = 188 +38Q +4Q² What is the average fixed cost when 18 units are produced? Enter as a value. ROUND TO TWO DECIMAL PLACES.arrow_forward
- Solve the attachment.arrow_forwardSuppose your business is currently employing 750 workers, the only variable input, at a wage rate of RM48. The average product of labor is 96, the last worker added 6 units to total output, and total fixed cost is RM12,000. a) What is marginal cost? b) What is average variable cost? c) How much output is being produced? d) What is average total cost? e) Is average variable cost increasing, constant, or decreasing? What about average total cost?arrow_forwardGraph the average total cost curve by first using the point tool to plot points for the average total cost for Q-1, Q-5, and Q-14 and then using the curved-line tool to connect them. You may assume that all total costs for these quantities are multiples of $25. Use the formula ATC=for your calculations. To refer to the graphing tutorial for this question type, please click here P arh NO m 956 *** PAY TH ww 178 9 Q ** See Hint wakaarrow_forward
- Give typing answer with explanation and conclusionarrow_forwardNonearrow_forwardImagine a smartphone company has the following costs when they produce 200 phones: $50 in average fixed cost and $140 in average total cost. What would be the total variable cost for this company when they produce 200 phones? Type your numeric answer and submitarrow_forward
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