Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Chapter 9, Problem 6DQ
To determine
Impact of economies of scale and diseconomies of scale on an average total cost .
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Situation 21-1
Diane's Donuts will begin selling donuts next week. Diane figures that
the average variable cost to make each donut will be constant at $0.30.
She has already paid $20,000 for the donut-making machinery and one
year's rent.
Refer to Situation 21-1. What will Diane's total variable costs be if she sells 36,500 donuts in one year?
$10,950
O $18,450
$22,080
$12,500
A factory currently manufactures and sells 800 boats per year. Each boat costs $5,000 to produce. $4,000 of the per-boat costs are for materials and other variable costs, while the per-boat fixed costs (incurred on yearly rent, administrative, and other fixed costs) are $1,000. If boat orders increase to 1000 boats per year, how do per-unit costs change?
1) Variable costs fall to $3,200 per boat and fixed costs fall to $800 per boat
2) Variable costs are unchanged at $4,000 per boat and fixed costs fall to $800 per boat
3) Variable costs are unchanged at $4,000 per boat and fixed costs are unchanged at $1,000 per boat
4) Variable costs rise to $5,000 per boat and fixed costs are unchanged at $1,000 per boat
Answer please
Chapter 9 Solutions
Economics (Irwin Economics)
Ch. 9.2 - Prob. 1QQCh. 9.2 - Prob. 2QQCh. 9.2 - Prob. 3QQCh. 9.2 - Prob. 4QQCh. 9.5 - Prob. 1QQCh. 9.5 - Prob. 2QQCh. 9.5 - Prob. 3QQCh. 9.5 - Prob. 4QQCh. 9.8 - Prob. 1QQCh. 9.8 - Prob. 2QQ
Ch. 9.8 - Prob. 3QQCh. 9.8 - Prob. 4QQCh. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 1RQCh. 9 - Which of the following are short-run and which are...Ch. 9 - Prob. 3RQCh. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4P
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