29979995799&elSBN=97803571336068&snapshotld%3D2200166&id%3D1061547992&takeld560480SRATC,400320SRATC240160LRATC80++100200300400500600700QUANTITY (Bikes)In the following table, indicate whether the long-run average cost curve exhibits economies of scale, constant returns to scale, or diseconomies ofscale for each range of bike production.RangeEconomies of ScaleConstant Returns to ScaleDiseconomies of ScaleMore than 400 bikes per monthFewer than 300 bikes per monthBetween 300 and 400 bikes per monthMacerAVERAGE TOTAL COST (Dollars per b Ike'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 variouslevels 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 FactoriesQ = 100Q = 200Q = 300Q = 400Q = 500Q = 600%3D3602001602404007205403001601603005403720400240160200360Suppose Ike's Bikes is currently producing 500 bikes per month in its only factory. Its short-run average total cost is sper bike.Suppose Ike's Bikes is expecting to produce 500 bikes per month for several years. In this case, in the long run, it would choose to produce bikesusingOn 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 curve if it operates one factory (SRATC,); use the purple points (diamond symbol) to plot its SRATC curve if it operates two factories (teplot it CDATC CHEVO iR.onoratoec throo actorios SRATC Finall alet thalona runacer

Note: I am answering the 2 parts only. For the graph part, the complete information to plot the…

Average Total Cost (Dollars per bike) Number of Factories Q = 100 Q = 200 Q = 300 Q = 400 Q = 500 Q = 600 360 200 160 240 400 720 540 300 160 160 300 540 3. 720 400 240 160 200 360 Suppose Ike's Bikes is currently producing 500 bikes per month in its only factory. Its short-run average total cost is $ per bike. Suppose Ike's Bikes is expecting to produce 500 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using

Average Total Cost (Dollars per bike) Number of Factories Q = 100 Q = 200 Q = 300 Q = 400 Q = 500 Q = 600 360 200 160 240 400 720 540 300 160 160 300 540 3. 720 400 240 160 200 360 Suppose Ike's Bikes is currently producing 500 bikes per month in its only factory. Its short-run average total cost is $ per bike. Suppose Ike's Bikes is expecting to produce 500 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A firm estimates its production function as Q = -2.4 + 20*L -.5*L2 + 30*K -1.00*K2 + 15*F -.3*F2. Total cost is TC = $2*L + $2.5*K + $1.75*F. The firm wishes to produce 400 units of output. Use Excel to find the cost minimizing amounts of L, K and F. How much F (Fuel) should the firm use?
Suppose you run a factory whose short-run production function is given by f (L) = 180L² – 3L³. (a) Find mathematical expressions for the total product of labor, the average product of labor and the marginal product of labor. (b) On two separate axes, graph TPL, APL, and M PL. The diagrams do not need to be scale, but be sure they are internally consistent. In other words, make sure that all relevant relationships between the three lines are correct. If you have trouble figuring out what the graph looks like, feel free to use a graphing calculator or an online graphing tool to find the basic shape. Find the quantity of labor associated with each of the following points and label it on your diagram: (i) the maximum value of TPL, (ii) the maximum value of APL, (iii) the maximum value of MPL. (c) For what values of L does the production function exhibit each of the following: i. increasing marginal labor productivity ii. diminishing marginal labor productivity iii. negative marginal labor…
es The following are three short-run average total cost schedules for the only three possible plant sizes, 1, 2, and 3. Find the long-run average cost schedule and show the result in the second table. Size 1 Q 10 20 30 40 50 60 ATC $1.00 90 .85 .88 .93 1.05 Size 2 Q 20 30 40 50 60 70 Long-Run Q 10 90 ATC $.95 .80 .76 .79 .83 .90 Size 3 Q 40 50 60 70 80 90 AC $ ATC $1.00 .87 .84 .80 .95 1.05
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Explain why this statement is true or false: "If the labor cost per table is $20 and the material cost per table is $30, the short run average cost per table is $50."
Answer the question on the basis of the following cost data: Average Average Fixed Variable Output Cost Cost 1 $50.00 $100.00 2 25.00 80.00 3 16.67 66.67 4 12.50 65.00 5 10.00 68.00 6 8.37 73.33 7 7.14 80.00 B 6.25 87.50 Refer to the above data. The total cost of four units of output is: $77.50. $215. $310. $260. Answer the question on the basis of the following cost data: Average Average Fixed Variable Output Cost Cost $50.00 $100.00 2 25.00 80.00 3 16.67 66.67 4 12.50 65.00 10.00 68.00 6 8.37 73.33 7 7.14 80.00 6.25 87.50 Refer to the above data. If the firm closed down in the short run and produced zero units of output, its total cost would be: $100. $150. $50. zero.
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 = 100 Q = 200 Q = 300 Q = 400 Q = = 500 Q = 600 360 200 160 240 400 720 540 300 160 160 300 540 720 400 240 160 200 360 Suppose Ike's Bikes is currently producing 500 bikes per month in its only factory. Its short-run average total cost is $400 per bike. Suppose Ike's Bikes is expecting to produce 500 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using three factories ▼ On the following graph, plot the three SRATC curves for Ike's Bikes from the previous…
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Refer to the figure on the right. Suppose the output of a large aluminum firm drops from 2 million pounds to 0.5 million pounds per year. The long-run average cost of producing aluminum will go from $ to $. (Enter your responses rounded to the nearest penny.) Cost per pound $2.80 2.10 1.60 b 0.50 1.00 1.50 2.00 2.50 Million of pounds of Aluminum per year LA