Aplia Homework: Chapter 13Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.AVERAGE TOTAL COST (Dollars per bike)40036032028024020016012080400050100150200250QUANTITY OF OUTPUT (Bikes)RangeMore than 200 bikes per monthFewer than 150 bikes per monthBetween 150 and 200 bikes per month300350SRATC₁SRATC₂2SRATC3LRATC?Economies of Scale Constant Returns to ScaleDiseconomies of Scale Aplia Homework: Chapter 13AttemptsKeep the Highest / 45. Costs in the short run versus in the long runIke's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expandingproduction to two or even three factories. The following table shows the company's short-run average total cost (SRATC) each month for various levelsof 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 =118022703360= 50 Q = 100100150200Average Total Cost(Dollars per bike)Q = 150Q == 20080801201208080= 250 Q = 300360270180200150100Suppose Ike's Bikes is currently producing 50 bikes per month in its only factory. Its short-run average total cost is$180 per bike.Suppose Ike's Bikes is expecting to produce 50 bikes per month for several years. In this case, in the long run, it would choose to produce bikes usingone factoryOn the following graph, plot the three SRATC curves for Ike's Bikes from the previous table. Specifically, use the green points (triangle symbol) to plotits SRATC if it operates one factory (SRATC1), use the purple points (diamond symbol) to plot its short-run average total cost if it operates twofactories (SRATC2), and use the orange points (square symbol) to plot its SRATC if it operates three factories (SRATC3). Finally, plot the long-runaverage total cost (LRATC) for Ike's Bikes using the blue points (circle symbol).Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.

Average total cost is means to as the sum total of all production costs divided by the total…

5. Costs in the short run versus in the long run 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 = 50 Q = 100 1 180 2 270 3 360 100 150 200 Average Total Cost (Dollars per bike) Q = 150 Q = 200 80 120 80 80 120 80 . Q = 250 200 150 100 Q = 300 360 270 180 Suppose Ike's Bikes is currently producing 50 bikes per month in its only factory. Its short-run average total cost is $180 per bike. Suppose Ike's Bikes is expecting to produce 50 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using one factory

5. Costs in the short run versus in the long run 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 = 50 Q = 100 1 180 2 270 3 360 100 150 200 Average Total Cost (Dollars per bike) Q = 150 Q = 200 80 120 80 80 120 80 . Q = 250 200 150 100 Q = 300 360 270 180 Suppose Ike's Bikes is currently producing 50 bikes per month in its only factory. Its short-run average total cost is $180 per bike. Suppose Ike's Bikes is expecting to produce 50 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using one factory

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

5. Costs in the short run versus in the long run 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: Qequals the total quantity of bikes produced by all factories.) Number of Factories Q = 50 1 180 2 270 3 360 AVERAGE TOTAL COST (Dollars per bike) 400 360 320 280 240 Suppose Ike's Bikes is currently producing 50 bikes per month in its only factory. Its short-run average total cost is 200 per bike. Suppose Ike's Bikes is expecting to produce 50 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using 160 On the following graph, plot the three SRATC curves for Ike's Bikes from the previous table. Specifically, use the green points…
22. Suppose an artist put on 5 concerts in Korea last month for an average total cost of $1 million each. It considered doing 6 concerts for an average total cost of $0.9 million but decided not to. What would have been the marginal cost of the 6th concert? $_ million
Consider a small photography studio with 8 workers and 5 The total cost of labor and capital is $3,200. In order to reduce total operating costs, the owner leases 5 additional printers and fires 5 workers. After these changes, the salary of each worker increases by $30, the cost of using each of the printers (both new and old) remains constant, and the total cost of labor and capital decreases to $2,900. What is the cost of using one printer?
5. Costs in the short run versus in the long run 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.) Average Total Cost (Dollars per bike) Number of Factories Q = 50 Q = 100 Q = 150 Q = 200 Q = 250 Q = 300 THEM 1 220 140 120 160 240 2 310 190 120 120 190 400 310 220 3 400 240 160 120 140 Suppose Ike's Bikes is currently producing 300 bikes per month in its only factory. Its short-run average total cost is per bike. Suppose Ike's Bikes is expecting to produce 300 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using On the following graph, plot the three SRATC curves for…
3. (14 points) Let the production function be Q(K,L)=2K L. The cost of one unit of labor is w, the cost of one unit of capital is r, and the quanitity to produce is y. (a) (4 points) Set up the firm's cost-minimization problem, and clearly write down the con- Page 6 straint the firm faces. The cost minimization problem of the firm is min(KL) WL+rK. The constraint: y=2K!L!. anscribed Text (b) (5 points) What are two conditions that the optimal bundle L and K need to satisfy? Write down their expressions. Tangency: -=-; production: y = 2(K)! (L)!. (c) (5 points) Solve for the optimal bundle of L. and K that minimizes the firm's cost at y=144 by finding L and K", assuming that w $16 and r $81. By solving the system of two conditions in Part (b), it should be not that hard to get L = 162 and K* = 32.
What is the average total cost of producing 300 LCD screens?
3. Costs in the short run versus in the long run Scooter's Scooters is a large American manufacturer of electric scooters operating out of Boise. Currently, the company produces all of its scooters using a single manufacturing facility, its factory in town. Recently, management has been considering expanding operations to one or two additional factories. The following table presents the manufacturer's monthly short-run average total cost (SRATC) for various levels of production if it operates out of one, two, or three factories. (Note: Q equals the total quantity of scooters produced by all factories.) Number of Factories Q = 100 Q = 200 1 440 is 2 3 620 800 per scooter. 280 one factory 380 480 Average Total Cost (Dollars per scooter) Q = 300 = 400 240 320 240 240 240 320 Q = 500 480 380 280 Q = 600 800 Suppose Scooter's Scooters is currently producing 600 scooters per month in its only factory. Its short-run average total cost 620 440 Suppose Scooter's Scooters is expecting to produce…
1
© 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
5. Costs in the short run versus in the long run Scooter's Scooters is a large American manufacturer of electric scooters operating out of Detroit. Currently, the company produces all of its scooters using a single manufacturing facility, its factory in town. Recently, management has been considering expanding operations to one or two additional factories. The following table presents the manufacturer's monthly short-run average total cost (SRATC) for various levels of production if it operates out of one, two, or three factories. (Note: Q equals the total quantity of scooters produced by all factories.) Average Total Cost (Dollars per scooter) Number of Factories Q=50 Q = 100 Q = 150 Q = 200 Q=250 =300 140 60 40 BO 160 320 2 230 110 40 40 110 230 3 320 160 80 40 60 140 Suppose Scooter's Scooters is currently producing 300 scooters per month in its only factory. Its short-run average total cost is $320 per scooter. Suppose Scooter's Scooters is expecting to produce 300 scooters per…
Consider an airline's decision about whether to cancel a particular flight that hasn't sold out. The following table provides data on the total cost of operating a 100-seat plane for various numbers of passengers. Total Cost Number of Passengers (Dollars per flight) 40,000 10 60,000 20 65,000 30 68,000 40 70,000 50 71,000 60 72,500 70 73,500 80 74,000 90 74,300 100 74,500 Given the information presented in the previous table, the fixed cost to operate this flight is s At each ticket price, a different number of consumers will be willing to purchase tickets for this flight. Assume that the price of a flight is fixed for the duration of ticket sales. Use the previous table as well as the following demand schedule to complete the questions that follow. Price Quantity Demanded (Dollars per ticket) (Tickets per flight) 1,000 700 30 400 90 200 100
4. Costs in the short run versus in the long run 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 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 2 3 180 250 320 Q = 200 120 160 200 Average Total Cost (Dollars per bike) Q = 300 Q = 400 80 120 80 80 120 80 Q = 500 200 160 120 Q: = 600 320 250 180 Suppose Ike's Bikes is currently producing 100 bikes per month in its only factory. Its short-run average total cost is $ 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