Instacart offers consumers a convenient form of home delivery service for groceries. Units of output (q) are individual grocery deliveries/day. Grocery deliveries are achieved through the use of delivery trucks (K) and workers (L). The price of labor (w) is $10/worker. Use the provided graph to answer the question below. K 16 15 mannp98 14 13 12 11 10 7 6 5 4 3 2 1 B C D q=50 12 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 q=100 L Instacart is currently operating in the short run with its capital stock (its trucks) fixed at ( K = 3 ). Let's say it wants to expand its production up to 100 grocery deliveries/day. Which of the following statements is true about Instacart's average fixed costs of production when making 100 deliveries/day, as opposed to 50 deliveries/day AFC is higher when q = 100, relative to AFC when q 50 AFC is the same at both q = 100 and q = 50 AFC is lower when q = 100, relative to AFC when q = 50 O More information is needed to answer this question
Instacart offers consumers a convenient form of home delivery service for groceries. Units of output (q) are individual grocery deliveries/day. Grocery deliveries are achieved through the use of delivery trucks (K) and workers (L). The price of labor (w) is $10/worker. Use the provided graph to answer the question below. K 16 15 mannp98 14 13 12 11 10 7 6 5 4 3 2 1 B C D q=50 12 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 q=100 L Instacart is currently operating in the short run with its capital stock (its trucks) fixed at ( K = 3 ). Let's say it wants to expand its production up to 100 grocery deliveries/day. Which of the following statements is true about Instacart's average fixed costs of production when making 100 deliveries/day, as opposed to 50 deliveries/day AFC is higher when q = 100, relative to AFC when q 50 AFC is the same at both q = 100 and q = 50 AFC is lower when q = 100, relative to AFC when q = 50 O More information is needed to answer this question
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter7: Production Economics
Section: Chapter Questions
Problem 1.2CE
Related questions
Question
![Instacart offers consumers a convenient form of home delivery service for groceries. Units of
output (q) are individual grocery deliveries/day. Grocery deliveries are achieved through the use
of delivery trucks (K) and workers (L). The price of labor (w) is $10/worker. Use the provided graph
to answer the question below.
K
16
15
14
13
12
11
10
9
8
7
6
5
4
3
32
2
1
A
B
C
q=100
q=50
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
L
Instacart is currently operating in the short run with its capital stock (its trucks) fixed at (
K = 3
). Let's say it wants to expand its production up to 100 grocery deliveries/day. Which of the
following statements is true about Instacart's average fixed costs of production when making
100 deliveries/day, as opposed to 50 deliveries/day
AFC is higher when q = 100, relative to AFC when q
O AFC is lower when q = 100, relative to AFC when q = 50
O AFC is the same at both q = 100 and q = 50
O More information is needed to answer this question
= 50](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F314f0635-1dd9-4d26-9205-7f03c7b2e19c%2F0b55a27c-174e-450b-9414-1c90d6a973e2%2F4maatdh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Instacart offers consumers a convenient form of home delivery service for groceries. Units of
output (q) are individual grocery deliveries/day. Grocery deliveries are achieved through the use
of delivery trucks (K) and workers (L). The price of labor (w) is $10/worker. Use the provided graph
to answer the question below.
K
16
15
14
13
12
11
10
9
8
7
6
5
4
3
32
2
1
A
B
C
q=100
q=50
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
L
Instacart is currently operating in the short run with its capital stock (its trucks) fixed at (
K = 3
). Let's say it wants to expand its production up to 100 grocery deliveries/day. Which of the
following statements is true about Instacart's average fixed costs of production when making
100 deliveries/day, as opposed to 50 deliveries/day
AFC is higher when q = 100, relative to AFC when q
O AFC is lower when q = 100, relative to AFC when q = 50
O AFC is the same at both q = 100 and q = 50
O More information is needed to answer this question
= 50
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