The Mini-Case “Economics of Scale at Google” describes economies of scale for Google Cloud Storage. The cost function for this service is well approximated by C=F +cq, where C is total cost, F is fixed cost, c is a constant, and q is output. What is marginal cost for this cost function? What is average cost? Over what range of output does Google have economies of scale?

Question

The Mini-Case “Economics of Scale at Google” describes economies of scale for Google Cloud Storage. The cost function for this service is well approximated by C=F +cq, where C is total cost, F is fixed cost, c is a constant, and q is output. What is marginal cost for this cost function? What is average cost? Over what range of output does Google have economies of scale?

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Economics

Related Economics Q&A

Find answers to questions asked by students like you.

Q: What will be the firms total profit?

A: In Perfect competition, the firm is in equilbrium where the MC curve cuts MR curve below. Here, MR a...

Q: 1-What is the general relationship between a country's price level and the quantitiy of it's domesti...

A: 1-What is the general relationship between a country's price level and the quantitiy of it's domesti...

Q: During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor expense...

A: It is given that,Firms’ Revenue = $450, 000Firms’ Explicit Cost (Expense on labor, raw material, ren...

Q: q 14. suppose that MUx=10 and MUy=20. Furthur suppose that the consumer's budget constraint can be e...

A: Utility:The utility is the power or capacity of the goods and services to satisfy human wants, it is...

Q: Bryce is at the local grocery store, shopping for himself and his girlfriend Renee. This week, chick...

A: The two effects that may cause Bryce to purchase more chicken breasts this week than last week isInc...

Q: Who selects the chairperson of the federal reserve system ? Describe the relationship between the Bo...

A: Federal Reserve system:Federal Reserve system or Fed is a central bank of the United States which ma...

Q: The European Central Bank began operation in January 1999. The nineteen countries now covered by the...

A: The ECB (European Central Bank) is the utmost (central) bank that is responsible for conducting mone...

Q: if the FED mailed everyone a brand new $100 bill, what would happen to prices, income and output in ...

A: Money supply is the total stock of money in the economy at a point of time. It is controlled by Fede...

Q: Table 1 Production Function and Demand for Labor Schedules Quantity of labor demanded ​(billion...

A: We are given the schedule for production function and labor demand and supply as follows:

Q: Let’s apply the general equilibrium set up to discuss the on-going trade war between the U.S. and Ch...

A: General equilibrium (GE) theory mainly focuses on determining the behavior of demand (D), supply (S)...

Q: Low interest rates means low inflation which means depreciated currency. This stimulates businessmen...

A: Firstly, we need to understand the interest rate mechanism. When there is low inflation, it will be ...

Q: Calculate the Marginal Propensity to Consume and the Marginal Propensity to Save. Fill in the blanks...

A: Saving(S)If nation income (Y) is $9,000 and the consumption (C) is $8,000, then the saving (s) can b...

Q: why is nominal interest always positive but not negative or zero

A: Nominal interest refers to the rate of lending before taking inflation into account.

Q: what are 2 assumptions that underline the conclusion that free market are efficient?

A: Free Market Economy:It is a system of the market in which prices of commodities are determined by th...

Q: 2. As an employee of the Rays-R-Us Corporation (a solar panel company), you have been asked to deter...

A: a.Total cost and long run average cost for quantity 1:Total cost and long run average cost for quant...

Q: from December 2015 through December 2018, , the Fed raised the target level for the federal funds ra...

A: A yield curve is also known as “term structures of interest rates” is a line graph which plots the y...

Q: Unemployment and the Labor ForceALFRED Il Cvillan Labor Force Participation Rate: 16 to 19 years Vin...

A: Hi, you will be able to see exact value of peaks if you go to AlFred site and use the following path...

Q: Fiscal Policy- Ask FRED The accompanying graph depicts the unemplovment insurance benefits paid bv t...

A: As can be observed from the graph, peak is touched in January,2010 when it hits $161.4 BnAnswer: 161...

Q: Derive the elasticity of substitution for the Cobb-Douglas production Fonction. f(L,K) = ALαKβ

A: Elasticity of substitution measures the responsiveness of change in MRTS (Marginal Rate of Technical...

Q: Transmission and Amplification Mechanisms- Ask FRED When a borrower fails to make a scheduled paymen...

A: a.Transmission and amplification mechanisms:From the given graph, the approximate delinquency rate i...

Q: Does the fact that your bank keeps only a fraction of your account balance in reserve worry you? Why...

A: Step 1The bank is a financial institution that focuses on accepting the deposit and making progress ...

Q: Amazon initially selected two locations for US headquarters-NYC and Northern Virginia. It recently w...

A: The United States follows a mixed economy system where the role of government is limited and it inte...

Q: Question #2: Using the following graph to answer the following questions: ATC AVC Q 0 4 0, D 0 D 0 0...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: Bose will incur fixed costs of $200,000 and unit variable costs of $25 on its new wireless Bluetooth...

A: Fixed cost is the cost that must be paid by the firm irrespective of its level of production.Variabl...

Q: 1. Suppose an increase in consumers' income causes a decrease in the demand for chicken and an incre...

A: 1.The demand for chicken:The demand for chicken is inferior good, because its demand decreases when ...

Q: a1. You learn on the business channel that inflation was about 0.8% last month.  Assume this rate is...

A: Since you have not mentioned which question have to answer. So, I am answering question “a1”.

Q: in International Relations, what is ‘Dominance’ in IR Theory?  Instruments of  dominance? Concept of...

A: International relations (IR) theory is an analysis of IR from a theoretical point of view where IR m...

Q: 6.Which of the following are short-run and which are long-run adjustments? LO3 a.Wendy’s builds a ne...

A: Short run: Short run refers to a time period which does not allow a change in the capital to adjust ...

Q: Why does the us not outlaw all monopolies?

A: A monopoly is a market form where a single producer of a particular commodity or service controls th...

Q: What is the equal-payment series for 10 years that is equivalent to a payment series starting with $...

A: The first step is to compute the total present value of cashflows for 10 years which is decreasing e...

Q: When a country's currency appreciates, the prices of its exports in terms of foreign currency will _...

A: Money: Money can be anything which is accepted by the people as a medium of exchange or in repayment...

Q: The Federal Reserve System and Open Market Operations_ Ask FRED The accompanying graph depicts the v...

A: Mortgage Backed Securities: A mortgage-backed security is a kind of asset-backed agreement (a 'tool'...

Q: Samantha Roberts has a job as a pharmacist earning $30,000 per year, and she is deciding whether to ...

A: (a)The business and economic profit:Business profit and economic profit can be calculated as follows...

Q: The accompanying graph depicts a hypothetical monopoly. Follow instuctions 1-3 below to identify the...

A: Here, it is given thatPoint E is the equilibrium point where the monopolist can generate maximum pro...

Q: How’s would you solve for number 9 or 10? I don’t understand how to figure it out

A: Since we are entitled to answer only one question, we would be answering question #9. For help with ...

Q: Suppose that the United States cracks down on illegal immigrants and returns millions of workers to ...

A: Mexican labor supply and labor demand curve:

Q: Suppose a firm has chosen its quantity so that its marginal cost isequal to the market price, and is...

A: Known fact:Economies of scale: The economies of scale is a situation in which output can be doubled ...

Q: The market for tickets to this year’s football games consists of two groups of consumers. Let x1deno...

A: From the information given in the question, let us try to answer the following questions.

Q: please help

A: Let\'s look at what information we have to work with. 

Q: What does the law of increasing opportunity cost state?

A: Law of Increasing opportunity cost staes that when the production of a particular product is increas...

Q: If it looks like a bank won't meet the Federal Reserve Bank's reserve requirement, normally it will ...

A: Federal fund rate is the interest rate at which the depository institutions lend reserve balances to...

Q: please help

A: Marginal Product:Marginal product refers to the change in output due to the change in inputs. Altern...

Q: How does Trade and Development Report 2012 describe impact of globalization on income distribution?

A: Globalization is the phenomenon that describes inter-connectivity of countries connecting them in va...

Q: 7) Explain the slopes of the supply and demand curves in the federal funds market.  Show and explain...

A: Federal fund rate: It is the interest rate at which banks and other depository institutions lend to ...

Q: Suppose Xavier has tickets to the Super Bowl, but is terribly ill with a noncontagious infection. Ho...

A: According to the traditional model of risk behavior, the normal person likes to take risks. The tick...

Q: A bond is considered:     A) M1.   B) a liability for the owner of the bond that i...

A: Money: Money can be anything which is accepted by the people as a medium of exchange or in repayment...

Q: Fabian is Canadian. His grandfather recently required chemotherapy, but was frustrated by the long d...

A: Excess Demand: Excess demand refers to the situation where the demand for goods and services are mor...

Q: Mary is a corn farmer in Iowa. If she does not irrigate her field, she can produce 120 bushels of co...

A: From the graph we see that the Y axis shows Irrigation water and Corn produced is shown on the X-axi...

Q: Lisette owns a bakery. If she expands the size of her bakery but her average total cost of producing...

A: Here, Lisette being the owner of the bakery shop experiences constant returns to scale.

Q: How does price discrimination play a role in the economy?How does the idea of price discrimination a...

A: Price discrimination is the pricing strategy (usually practiced by a monopolist) whereby the monopol...