Microeconomics (7th Edition)
7th Edition
ISBN: 9780134737508
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 8, Problem 8.3.6PA
To determine
The cost of producing pizza for Paolo and Alfredo.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Although Goldman Sachs paid Heather $110,000.00 per year, she was not satisfied with her job. She had loved going white-water rafting and skiing
with her family in Utah since she was a little girl. So last year, she decided to open her own business: Family Adventures. During the summer, she takes
families on different white-water trips, and in the winter, she leads clients on skiing trips. To start her business, Heather borrowed $100,000 from a
bank and used $80,000.00 of her savings. Her savings earned 10% interest. At the end of the year, she wanted to know whether her new business
venture was worthwhile. The table below lists her total revenue and itemized costs for Family Adventures.
Annual Dollar Value
$220,000.00
$140,000.00
Item
Total revenue
Employee wages
Rent on her business office
$25,000.00
Payments on bank loan
Utility and gas expenses
$10,000.00
$5.000.00
Choose one of the top firms on this list. Try to choose something no other student has already chosen.
http://www.forbes.com/global2000/list/
Do a little research into the company that you choose. Discuss the likely sources of economies of scale that are the foundation of their larger size. (The two sources can be found on pages 343 and 344 in your text).
Not certain on what to do to solve
Chapter 8 Solutions
Microeconomics (7th Edition)
Ch. 8.A - Prob. 1RQCh. 8.A - Prob. 2RQCh. 8.A - Prob. 3RQCh. 8.A - Prob. 4RQCh. 8.A - Prob. 5RQCh. 8.A - Prob. 6PACh. 8.A - Prob. 7PACh. 8.A - Prob. 8PACh. 8.A - Prob. 9PACh. 8.A - Prob. 10PA
Ch. 8.A - Prob. 11PACh. 8.A - Prob. 12PACh. 8.A - Prob. 13PACh. 8.A - Prob. 14PACh. 8 - Prob. 8.1.1RQCh. 8 - Prob. 8.1.2RQCh. 8 - Prob. 8.1.3RQCh. 8 - Prob. 8.1.4PACh. 8 - Prob. 8.1.5PACh. 8 - Prob. 8.1.6PACh. 8 - Prob. 8.1.7PACh. 8 - Prob. 8.1.8PACh. 8 - Prob. 8.1.9PACh. 8 - Prob. 8.1.10PACh. 8 - Prob. 8.1.11PACh. 8 - Prob. 8.1.12PACh. 8 - Prob. 8.2.1RQCh. 8 - Prob. 8.2.2RQCh. 8 - Prob. 8.2.3RQCh. 8 - Prob. 8.2.4PACh. 8 - Prob. 8.2.5PACh. 8 - Prob. 8.2.6PACh. 8 - Prob. 8.2.7PACh. 8 - Prob. 8.2.8PACh. 8 - Prob. 8.2.9PACh. 8 - Prob. 8.2.10PACh. 8 - Prob. 8.2.11PACh. 8 - Prob. 8.2.12PACh. 8 - Prob. 8.2.13PACh. 8 - Prob. 8.3.1RQCh. 8 - Prob. 8.3.2RQCh. 8 - Prob. 8.3.3RQCh. 8 - Prob. 8.3.4RQCh. 8 - Prob. 8.3.5PACh. 8 - Prob. 8.3.6PACh. 8 - Prob. 8.3.7PACh. 8 - Prob. 8.3.8PACh. 8 - Prob. 8.3.9PACh. 8 - Prob. 8.4.1RQCh. 8 - Prob. 8.4.2RQCh. 8 - Prob. 8.4.3PACh. 8 - Prob. 8.4.4PACh. 8 - Prob. 8.4.5PACh. 8 - Prob. 8.4.6PACh. 8 - Prob. 8.2CTE
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- Break-Even Analysis Your buddy comes to you with a sure-fire way to make some quick money and help pay off your student loans. His idea is to sell T-shirts with the words “I get” on them. “You get it?” He says, “You see all those bumper stickers and T-shirts that say ‘got milk’ or ‘got surf.’ So this says, ‘I get.’ It’s funny! All we have to do is buy a used silk screen press for $7,200 and we are in business!” Assume there are no fixed costs and you depreciate the $7,200 in the first period. The tax rate is 21 percent. a. What is the accounting break-even point if each shirt costs $3.20 to make and you can sell them for $15 apiece? Now assume one year has passed and you have sold 5,000 shirts! You find out that the Dairy Farmers of America have copyrighted the “got milk” slogan and are requiring you to pay $20,000 to continue operations. You expect this craze will last for another three years and that your discount rate is 12 percent. b. What is the financial break-even point for your…arrow_forwardJanine and John share profits of their partnership in the ratio of 2:3. If Janine's share in the profit for last year was P 30,000.00, how much was John's share in the profit of the business?arrow_forwardwhat is your takeaway on this article please? https://keydifferences.com/difference-between-explicit-cost-and-implicit-cost.htmlarrow_forward
- What is perfect multicoloniearity?arrow_forward. A book that sounds just perfect for me, Kate Raworth’s Doughnut Economics is available on Amazon for $40.35 for the hardback and $15.99 for paperback. From the publisher’s perspective, the difference in the cost between each version of the book seems negligible; it may cost a little bit more to produce the hard cover, but certainly not more than 2.5 times as much. Hardback versions usually also get published a few months before paperback versions are published. How do you explain the different prices for essentially the same product, given that the cost to the publisher of providing each type of book is basically the same? Amazon also offers the Kindle digital e-book version for $11.87. The cost to Amazon to produce a new “copy” for the next consumer is virtually nothing; just the sending of some data to the customer’s device. Why is Amazon able to charge $11.87 when its cost is basically zero and the market for books is likely very competitive? Note:- Do not provide handwritten…arrow_forwardExplain how a company could choose to get bigger, yet lower their average costs?arrow_forward
- Josh and Alex work as design engineers creating high‑end lighting fixtures. After one particularly enlightened afternoon, they decide to follow their dreams and open a cupcake bakery. Please classify their various costs. Supplies like sugar, butter, and baking trays Advertising space taken out on a social networking site The salary Alex earned in his previous job designing light fixtures The garage spaced used for baking that can no longer be rented out to a college student The money they pay their neighbor's six-year old son to deliver cupcakes to their customers Implicit costs Not a cost Explicit costsarrow_forwardDave and his sister Chris made unusual kites. They both created the designs; Dave made the patterns. Friends had always wanted to buy their kites. After Chris completed a college marketing program, she began to talk to Dave about going into business selling kites. Ed, a friend of Chris's, wanted to be involved. He said he could buy the supplies and do other odd chores. They decided to try to make a go of it and to share the profits as follows: Dave 35%, Chris 35%, and Ed 30%. Things went well for 7 months. They even hired George to deliver kites to the increased number of stores buying them. Chris and Ed became romantically involved. This was followed by a heated dispute. Ed disappeared with $1300 collected from customers and $600 worth of supplies, which he had bought on behalf of the business from their regular supplier. At about the same time, George negligently broke a customer's $200 lamp when he was delivering a kite. On these facts, which of the following is true? O a. If the…arrow_forwardQuestion 1 At the beginning of the year 2021, three friends, Ebo, Michael and Joseph decided to set up a company that produces a special kind of fruit juice called BB fruit juice in a city called St. Botch. As fresh graduate from the University of Professional Studies, Accra, you were employed as the firm's general manager in charge of the day to day running of the company. In order to make informed decisions about the firm's product, you employed an economist, who estimated the demand curve of the firm's product by using information from 30 supermarket as follows: = 99.5 – 2.5Px + 1.25P, – 0.21 + 0.15N + 0.04A Where Qd is the quantity demanded of BB fruit juice in bottles, P, is the per pottle price of BB fruit juice, P, is the per pottle price of Blue Sky, I is the per capita income of the people of St. Botch, N is the number of consumers and A is amount of money the company spends on advertising. y In addition, the economist also estimated the supply function for the product as: =…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning