Microeconomics
10th Edition
ISBN: 9781259655500
Author: David C Colander
Publisher: McGraw-Hill Education
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Question
Chapter 12, Problem 8QE
(a)
To determine
Determine the table value of total cost and
(b)
To determine
Explain whether the production of fake whales exhibits economies of scale, diseconomies of scale, or constant returns to scale.
(c)
To determine
Explain the fixed cost of producing fake whales.
(d)
To determine
Explain the variable cost of producing fake whales.
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Sea lions have been depleting the stock of steelhead trout. One idea to scare sea lions off the Washington state coast was to launch fake killer whales, predators of sea lions. The cost of making the first whale is $25,000—$7,000 for materials and $18,000 for the mold. The mold can be reused to make additional whales, so additional whales would cost $7,000 apiece.a. Calculate the total cost and average total cost of producing 1 to 10 fake killer whales by filling in the table below.Instructions: Enter your responses rounded to the nearest whole number.
Quantity
Total Costsof Mold ($)
Total Costsof Materials ($)
Total Costs($)
Average Total Costs ($)
1
18,000
7,000
25,000
2
3
4
5
6
7
8
9
10
b. Does production of fake whales exhibit diseconomies of scale, economies of scale, or constant returns to scale?
Diseconomies of scale
Constant returns to scale
Economies of…
In recent years, the United States has experienced large increases in oil production due in large part to a
new technology, hydraulic fracturing ("fracking"). Fracking involves injecting a mixture of water, sand, and
chemicals into rock formations at high pressure to release oil and natural gas. An article in the Wall Street
Journalindicates that economies of scale in fracking may be considerably smaller than in conventional oil
drilling. If this view is correct, what would the likely consequences be for the number of firms drilling for oil
in the United States?
Help me please
Chapter 12 Solutions
Microeconomics
Ch. 12.1 - Prob. 1QCh. 12.1 - Prob. 2QCh. 12.1 - Prob. 3QCh. 12.1 - Prob. 4QCh. 12.1 - Prob. 5QCh. 12.1 - Prob. 6QCh. 12.1 - Prob. 7QCh. 12.1 - Prob. 8QCh. 12.1 - Prob. 9QCh. 12.1 - Prob. 10Q
Ch. 12.A - Prob. 1QECh. 12.A - Prob. 2QECh. 12.A - Prob. 3QECh. 12.A - Prob. 4QECh. 12.A - Prob. 5QECh. 12.A - Prob. 6QECh. 12.A - Prob. 7QECh. 12 - Prob. 1QECh. 12 - Prob. 2QECh. 12 - Prob. 3QECh. 12 - Prob. 4QECh. 12 - Prob. 5QECh. 12 - Prob. 6QECh. 12 - Prob. 7QECh. 12 - Prob. 8QECh. 12 - Prob. 9QECh. 12 - Prob. 10QECh. 12 - Prob. 11QECh. 12 - Prob. 12QECh. 12 - Prob. 13QECh. 12 - Prob. 14QECh. 12 - Prob. 15QECh. 12 - Prob. 16QECh. 12 - Prob. 17QECh. 12 - Prob. 1QAPCh. 12 - Prob. 2QAPCh. 12 - Prob. 3QAPCh. 12 - Prob. 4QAPCh. 12 - Prob. 5QAPCh. 12 - Prob. 1IPCh. 12 - Prob. 2IPCh. 12 - Prob. 3IPCh. 12 - Prob. 4IPCh. 12 - Prob. 5IPCh. 12 - Prob. 6IP
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