Macroeconomics >custom<
17th Edition
ISBN: 9781323406977
Author: R. Glenn Hubbard, Anthony Obrien
Publisher: PEARSON
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Chapter 13, Problem 13.2.11PA
To determine
The impact of shorter supply of truck drivers in the short run and in the long run.
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Flat Screen Televisions Lose $126 per Unit Sold: Sony CorporationMost of the cost of a flat screen TV involves the LCD panel. Globally, 220 million flat screen TVs were sold in 2011 for $115 billion. Although scale economies in massive factories and volume discounts on electronic input components have driven the cost of LCDs down from $2,400 to $500 the last decade, the price has fallen even faster. In 2001, the average selling price of a large LCD panel was over $4,000. By 2011, this price had fallen below $600. Sony Corporation finds its flat screen TVs now fail to cover the full cost of the LCD panels and instead impose a $126 ($500 - $374) loss per TV sold. Nevertheless, the indirect fixed costs of the LCD factories including Korean Samsung, Japanese Sharp, Panasonic, and Sony constructed are partially covered by continuing its operation (continue production). Losses would be greater in the short run if they shut down.As an economic consultant, what would you advise Sony…
Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding
production to two or even three factories. The following table shows the company's short-run average total cost each month for various levels of
production if it uses one, two, or three factories. (Note: Qequals the total quantity of bikes produced by all factories.)
Number of Factories Q = 100
440
1
2
3
580
720
Q = 200
320
400
480
Average Total Cost
(Dollars per bike)
Q = 300 Q = 400
240
320
240
320
240
240
Q
= 500
480
400
320
Q = 600
720
580
440
Suppose Ike's Bikes is currently producing 600 bikes per month in its only factory. Its short-run average total cost is
per bike.
Suppose Ike's Bikes is expecting to produce 600 bikes per month for several years. In this case, in the long run, it would choose to produce bikes
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Chapter 13 Solutions
Macroeconomics >custom<
Ch. 13 - Prob. 13.1.1RQCh. 13 - Prob. 13.1.2RQCh. 13 - Prob. 13.1.3RQCh. 13 - Prob. 13.1.4RQCh. 13 - Prob. 13.1.5PACh. 13 - Prob. 13.1.6PACh. 13 - Prob. 13.1.7PACh. 13 - Prob. 13.1.8PACh. 13 - Prob. 13.1.9PACh. 13 - Prob. 13.1.10PA
Ch. 13 - Prob. 13.1.11PACh. 13 - Prob. 13.2.1RQCh. 13 - Prob. 13.2.2RQCh. 13 - Prob. 13.2.3RQCh. 13 - Prob. 13.2.4RQCh. 13 - Prob. 13.2.5PACh. 13 - Prob. 13.2.6PACh. 13 - Prob. 13.2.7PACh. 13 - An article in the Economist noted that the...Ch. 13 - Prob. 13.2.9PACh. 13 - Prob. 13.2.10PACh. 13 - Prob. 13.2.11PACh. 13 - Prob. 13.2.12PACh. 13 - Prob. 13.2.13PACh. 13 - Prob. 13.2.14PACh. 13 - Prob. 13.3.1RQCh. 13 - Prob. 13.3.2RQCh. 13 - Prob. 13.3.3RQCh. 13 - Prob. 13.3.4PACh. 13 - Prob. 13.3.5PACh. 13 - Prob. 13.3.6PACh. 13 - Prob. 13.3.7PACh. 13 - Prob. 13.3.8PACh. 13 - Prob. 13.3.9PACh. 13 - Prob. 13.3.10PACh. 13 - Prob. 13.4.1RQCh. 13 - Prob. 13.4.2RQCh. 13 - Prob. 13.4.3RQCh. 13 - Prob. 13.4.4PACh. 13 - Prob. 13.4.5PACh. 13 - Prob. 13.4.6PACh. 13 - Prob. 13.4.7PACh. 13 - Prob. 13.4.8PACh. 13 - Prob. 13.4.9PACh. 13 - Prob. 13.4.10PACh. 13 - Prob. 13.1RDECh. 13 - Prob. 13.2RDECh. 13 - Prob. 13.3RDE
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