2. Problems and Applications Q7Your cousin Vinnie owns a painting company with fixed costs of $150 and the following schedule for variable costs:Quantity(Houses Painted per Month)123456The efficient scale isVariable Cost Average Fixed Cost Average Variable Cost(Dollars)(Dollars)(Dollars)15356090135240480houses.Average Total Cost(Dollars)Save & ContinueContinue without saving

Variable expenses vary according on the amount of product generated. Labour, commissions, and raw…

2. Problems and Applications Q7 Your cousin Vinnie owns a painting company with fixed costs of $150 and the following schedule for variable costs: Quantity (Houses Painted per Month) 1 2 3 5 The efficient scale is Variable Cost Average Fixed Cost Average Variable Cost Average Total Cost (Dollars) (Dollars) (Dollars) houses. (Dollars) 15 35 60 90 135 240 480 Saun Contine

2. Problems and Applications Q7 Your cousin Vinnie owns a painting company with fixed costs of $150 and the following schedule for variable costs: Quantity (Houses Painted per Month) 1 2 3 5 The efficient scale is Variable Cost Average Fixed Cost Average Variable Cost Average Total Cost (Dollars) (Dollars) (Dollars) houses. (Dollars) 15 35 60 90 135 240 480 Saun Contine

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

2. Problems and Applications Q7
Your cousin Vinnie owns a painting company with fixed costs of $150 and the following schedule for variable costs:
Quantity
(Houses Painted per Month)
1
2
3
4
5
6
The efficient scale is
Variable Cost Average Fixed Cost Average Variable Cost
(Dollars)
(Dollars)
(Dollars)
15
35
60
90
135
240
480
houses.
Average Total Cost
(Dollars)
Save & Continue
Continue without saving

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10. Explain why economies of scale is important.
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