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 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 = 10012378°FSunny440620800F2Q = 200F3280380480OAverage Total Cost(Dollars per bike)Q = 300 Q = 400240240320F4320240240Suppose Ike's Bikes is currently producing 100 bikes per month in its only factory. Its short-run average total cost is $F5Q = 500480Suppose 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 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 (SRATC₁); use the purple points (diamond symbol) to plot its SRATC curve if it operates two factories (SRATC₂); and use the orange points (square symbol) to plot its SRATC curve if it operates three factories (SRATC3). Finally, plot the long-runaverage total cost (LRATC) curve for Ike's Bikes using the blue points (circle symbol).380280F6Q = 600N800620440F741-per bike.F8F9F10OF11F122Fn omework (Ch 13)Note: 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)80072078°FSunny640560480400320240160800100200300400QUANTITY (Bikes)500600700LESSRATCSRATC₂PSRATC3-OLRATCF8&F10EPFn

The short-run total cost (SRTC) and long-run total cost (LRTC) bends are expanding in the number of…

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 = 100 Q = 200 1 440 2 3 620 800 280 380 480 Average Total Cost (Dollars per bike) Q = 300 Q = 400 240 240 320 320 240 240 Q 500 480 380 280 Q = 600 800 620 440 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

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 = 100 Q = 200 1 440 2 3 620 800 280 380 480 Average Total Cost (Dollars per bike) Q = 300 Q = 400 240 240 320 320 240 240 Q 500 480 380 280 Q = 600 800 620 440 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

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Aplia Homework: Chapter 13 Attempts Keep the Highest / 4 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 = 1 180 2 270 3 360 = 50 Q = 100 100 150 200 Average Total Cost (Dollars per bike) Q = 150 Q = = 200 80 80 120 120 80 80 = 250 Q = 300 360 270 180 200 150 100 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…
Firm A produces 1,000 units of output at a cost of $16.84 each. Firm A sells 600 units to Firm B for a price of $24.53 each. They sell the remaining units to consumers for a price of $25.21 each. Firm B produces 100 units of output using the 600 units that it purchased from Firm A. The total cost of producing the 100 units was $77 per unit. Firm B sold 90 units to consumers for $101 each and did not sell the remaining units this year. What is the value of consumption spending? Enter a number rounded to two decimal places. ASUS 10 & 5 6
In Bushville, residents typically either work as salaried employees or owns small business on Central Square. Salaried employees on average earn $56,000 per year. All of the stores are rented by real estate companies who own the buildings. Currently the typical store brings in $325,000 of revenue per year. The typical variable costs needed to run a store in Bushville (paying for labor, buying material, etc.) are $210,000 year. a) What is the opportunity cost of running a store? Explain how you know this. b) Given this opportunity cost, what rent will the real estate companies charge? Explain. c) Suppose that a new highway brings more visitors to town, and stores on Central Square now brings in $472,000 of revenue per year with modest increase in variable costs to $236,000. What will happen to rents? Who will benefit – shop owners or the real estate companies?
Costs in the short run versus in the long run Scooter’s Scooters is a large American manufacturer of electric scooters operating out of Mesa. 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 Average Total Cost (Dollars per scooter) Q = 25 Q = 50 Q = 75 Q = 100 Q = 125 Q = 150 1 260 200 160 200 280 400 2 330 240 160 160 240 330 3 400 280 200 160 200 260 Suppose Scooter’s Scooters is currently producing 125 scooters per month in its only factory. Its short-run average total cost is $ per scooter. Suppose Scooter’s Scooters is expecting to produce 125 scooters…
The chief economist for Argus Corporation, a large appliance manufacturer, estimated the firm’s short-run cost function for vacuum cleaners using an average variable cost function of the form AVC = a + bQ + cQ2 where AVC = dollars per vacuum cleaner and Q = number of vacuum cleaners produced each month. Total fixed cost each month is $180,000. The following results were obtained: Dependent Variable AVC R-SQUARE F-RATIO P-VALUE ON F OBSERVATIONS 19 0.7360 39.428 0.0001 PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE VARIABLE INTERCEPT 191.93 54.65 3.512 0.0029 Q -0.0305 0.00789 23.866 0.0014 Q2 0.0000024 0.00000098 2.449 0.0262 Quetsion: At what level of output will average variable cost be at a minimum? What is the minimum average variable cost?
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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.) NOTE: the options for the blank question is this 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 _______ (once factory OR two factory OR three factory)
You are the owner of a small company that makes laptops at the price of $550. Your variable cost of production is 0.75q, such that q represents number of laptops made. If you were going to build a second company that has the following variable cost for 0.3q. What is the maximum fixed cost that you are okay with paying for this new company?
A bag factory produces 30 units of output. Its average fixed cost (AFC) = $32, average total cost (ATC) = $45, and marginal cost (MC) = $25. The shoe factory’s total variable cost is
Introduction to Calculus in Economics: Calculus is a powerful tool used in economics. One of the initial applications areas is the study of a firm, a topic in microeconomics. An important function is the cost function function C (z), the cost of producing z items (of whatever they are selling). This question deals with just the cost function C (z). Problem Set question: The cost, in dollars, of producing z units of a certain item is given by C (z) = 5z – 8/I – 3. Find the production level that minimizes the average cost per unit. The number of units that minimizes the average cost is Number