The conceptual shift in Amazon’s cost structure and relevant returns to scale. Introduction: Returns to scale are the changes seen in the output when all inputs rise in the same proportion. Such that, increasing returns to scale or diminishing cost is a situation where all factors f productions are increased and as result the output increase.

Question

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Answer 1

Question

Chapter 11, Problem 1BCQ

To determine

The conceptual shift in Amazon’s cost structure and relevant returns to scale.

Introduction: Returns to scale are the changes seen in the output when all inputs rise in the same proportion. Such that, increasing returns to scale or diminishing cost is a situation where all factors f productions are increased and as result the output increase.

Expert Solution & Answer

Explanation of Solution

The cost structure for Amazon in its input is mainly on warehouse management where seasonal labors deployed for the proper coordination of heavy orders. Thus, the fixed cost is based on the off-season sales that the company incurs while the variable costs will be the expenditure on the logistical management and fuel costs. Thus, the cost curve for Amazon has a rather linear state where fluctuations are seasonal and negligible.

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Answer 2

Question

Chapter 11, Problem 1BCQ

To determine

The conceptual shift in Amazon’s cost structure and relevant returns to scale.

Introduction: Returns to scale are the changes seen in the output when all inputs rise in the same proportion. Such that, increasing returns to scale or diminishing cost is a situation where all factors f productions are increased and as result the output increase.

Expert Solution & Answer

Explanation of Solution

The cost structure for Amazon in its input is mainly on warehouse management where seasonal labors deployed for the proper coordination of heavy orders. Thus, the fixed cost is based on the off-season sales that the company incurs while the variable costs will be the expenditure on the logistical management and fuel costs. Thus, the cost curve for Amazon has a rather linear state where fluctuations are seasonal and negligible.

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Answer 3

Question

Chapter 11, Problem 1BCQ

To determine

The conceptual shift in Amazon’s cost structure and relevant returns to scale.

Introduction: Returns to scale are the changes seen in the output when all inputs rise in the same proportion. Such that, increasing returns to scale or diminishing cost is a situation where all factors f productions are increased and as result the output increase.

Expert Solution & Answer

Explanation of Solution

The cost structure for Amazon in its input is mainly on warehouse management where seasonal labors deployed for the proper coordination of heavy orders. Thus, the fixed cost is based on the off-season sales that the company incurs while the variable costs will be the expenditure on the logistical management and fuel costs. Thus, the cost curve for Amazon has a rather linear state where fluctuations are seasonal and negligible.

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Answer 4

Question

Chapter 11, Problem 1BCQ

To determine

The conceptual shift in Amazon’s cost structure and relevant returns to scale.

Introduction: Returns to scale are the changes seen in the output when all inputs rise in the same proportion. Such that, increasing returns to scale or diminishing cost is a situation where all factors f productions are increased and as result the output increase.

Expert Solution & Answer

Explanation of Solution

The cost structure for Amazon in its input is mainly on warehouse management where seasonal labors deployed for the proper coordination of heavy orders. Thus, the fixed cost is based on the off-season sales that the company incurs while the variable costs will be the expenditure on the logistical management and fuel costs. Thus, the cost curve for Amazon has a rather linear state where fluctuations are seasonal and negligible.

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Answer 5

Chapter 11, Problem 1BCQ

To determine

The conceptual shift in Amazon’s cost structure and relevant returns to scale.

Introduction: Returns to scale are the changes seen in the output when all inputs rise in the same proportion. Such that, increasing returns to scale or diminishing cost is a situation where all factors f productions are increased and as result the output increase.

Expert Solution & Answer

Explanation of Solution

The cost structure for Amazon in its input is mainly on warehouse management where seasonal labors deployed for the proper coordination of heavy orders. Thus, the fixed cost is based on the off-season sales that the company incurs while the variable costs will be the expenditure on the logistical management and fuel costs. Thus, the cost curve for Amazon has a rather linear state where fluctuations are seasonal and negligible.

Answer 6

Chapter 11, Problem 1BCQ

To determine

The conceptual shift in Amazon’s cost structure and relevant returns to scale.

Introduction: Returns to scale are the changes seen in the output when all inputs rise in the same proportion. Such that, increasing returns to scale or diminishing cost is a situation where all factors f productions are increased and as result the output increase.

Expert Solution & Answer

Explanation of Solution

The cost structure for Amazon in its input is mainly on warehouse management where seasonal labors deployed for the proper coordination of heavy orders. Thus, the fixed cost is based on the off-season sales that the company incurs while the variable costs will be the expenditure on the logistical management and fuel costs. Thus, the cost curve for Amazon has a rather linear state where fluctuations are seasonal and negligible.

Answer 7

Chapter 11, Problem 1BCQ

To determine

The conceptual shift in Amazon’s cost structure and relevant returns to scale.

Introduction: Returns to scale are the changes seen in the output when all inputs rise in the same proportion. Such that, increasing returns to scale or diminishing cost is a situation where all factors f productions are increased and as result the output increase.

Answer 8

Expert Solution & Answer

Explanation of Solution

The cost structure for Amazon in its input is mainly on warehouse management where seasonal labors deployed for the proper coordination of heavy orders. Thus, the fixed cost is based on the off-season sales that the company incurs while the variable costs will be the expenditure on the logistical management and fuel costs. Thus, the cost curve for Amazon has a rather linear state where fluctuations are seasonal and negligible.