Watchshop is a watch manufacturing company that sells low-end wrist wacthes. They hire labour at the rate of tk. 3949.0 per worker and their fixed cost is equal to tk. 10630.0 per week. The table below is the product schedule of Watchshop Labour (workers hired per week) Output (watches produced per week) 1 38.0 2 78.0 3 128.0 4 168.0 5 198.0 6 218.0 7 228.0 (a) What is the total cost, when output is 128.0? (b) What is the marginal cost per unit when we move from output 198.0 to output 218.0? (c) Consider that Watchshop is operating in its range of diseconomies of scale. At that level of output, the slope of its LRAC curve is____ 1. Positive 2 .Zero 3. Negative 4. Insufficient information to comment on the slope of the LRAC curve
Watchshop is a watch manufacturing company that sells low-end wrist wacthes. They hire labour at the rate of tk. 3949.0 per worker and their fixed cost is equal to tk. 10630.0 per week. The table below is the product schedule of Watchshop Labour (workers hired per week) Output (watches produced per week) 1 38.0 2 78.0 3 128.0 4 168.0 5 198.0 6 218.0 7 228.0 (a) What is the total cost, when output is 128.0? (b) What is the marginal cost per unit when we move from output 198.0 to output 218.0? (c) Consider that Watchshop is operating in its range of diseconomies of scale. At that level of output, the slope of its LRAC curve is____ 1. Positive 2 .Zero 3. Negative 4. Insufficient information to comment on the slope of the LRAC curve
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter7: Economies Of Scale And Scope
Section: Chapter Questions
Problem 5MC
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Watchshop is a watch manufacturing company that sells low-end wrist wacthes. They hire labour at the rate of tk. 3949.0 per worker and their fixed cost is equal to tk. 10630.0 per week. The table below is the product schedule of Watchshop
Labour (workers hired per week) |
Output (watches produced per week) |
1 |
38.0 |
2 |
78.0 |
3 |
128.0 |
4 |
168.0 |
5 |
198.0 |
6 |
218.0 |
7 |
228.0 |
(a) What is the total cost, when output is 128.0?
(b) What is the marginal cost per unit when we move from output 198.0 to output 218.0?
(c) Consider that Watchshop is operating in its range of diseconomies of scale. At that level of output, the slope of its LRAC curve is____
1. Positive
2 .Zero
3. Negative
4. Insufficient information to comment on the slope of the LRAC curve
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