ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
4th Edition
ISBN: 9781285423548
Author: William A. McEachern
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 14, Problem 1.3PA
To determine
The comparison between economies of scale and economies of scope and the reason for few firms producing multiple products while the others produce one only.
Concept Introduction:
Firm’s production is based on production costs like average cost and marginal cost. Revenue generated from sales (total profit − cost).
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Microeconomics - Production FunctionA firm produces shoes using labor (L) and machinery (K) as factors of production. Its production function is Q = K1/3 * L2/3. Answer:(a) is the marginal product of labor (MPL) decreasing?b) is the average product of labor (APL) decreasing?c) what is the relationship between the average product (AP) and marginal product (MP) curves?d) what type of returns to scale does Q exhibit?
Give correct typing answer with explanation and conclusion
Pauli hire Hamish to build a four-drawer armoire for new home, to be completed by August 15. But Hamish calls Pauli on August 1 and says that he will not be able to complete the armoire on time.
Engineering economic book.
"Frank bought a house for $100,000. He put 20% down and borrowed the rest from the bank. However, the value of the house has now increased to $160,000 and he has paid off $20,000 of the bank loan. What is the equity that Frank has in his home
Chapter 14 Solutions
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
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
- (6) If marginal product is greater than average product (a) total product must be increasing. (b) marginal product must be decreasing. (c) marginal product must be increasing. (d) average product may be increasing or decreasing.arrow_forwardQuestion 4.4. Which expression is another way of saying "marginal cost"? Scarce resources Additional cost Opportunity cost Unrecognized cost Question 5.5. Which is not a factor of production? Money Land Labor Capitalarrow_forward14. TOPIC: ENGINEERING ECONOMICS PLEASE ANSWER IN 4 DECIMAL POINTSarrow_forward
- 1. True or False: explain why your answer is true or false a. We can expect the average cost curve of a software product downloadable in the internet to have no minimum point. b. Decreasing returns to scale implies that production exhibits economies of scale. c. Fixed costs tend to infinity when output is zero d. While the distance between the total and variable cost curves does not change, the distance between the average total cost and the average variable cost curves decreases with increasing output. e. In general, production can display diminishing returns in all variables but still display increasing returns to scale. Explain your answer.arrow_forward1 Would you say chart 4 is a technical or a fundamental analysis 2 give a reason for your answerarrow_forward11- Al Shaihani is a halwa manufacturer which is famous for Omani Saffron Halwa. They wanted to increase their supply of halwa for the coming month of August 2021. However, due to COVID-19 Pandemic, the only available resources they could change are the number of their workers. Determine which type of production period Al Shaihani business is facing? a. Long run b. All of these c. Short - run d. Mid-runarrow_forward
- Number of Workers Units Produced Marginal Product Average Product 0 0 —– —- 1 20 2 35 3 45 4 50 5 45arrow_forwardBusiness Maths Question e) Jane is saleswoman employed to sell TV sets on a salary and commission basis. Her fixed monthly salary is 12,500/-. In an addition she receive 5% commission on the first 50,000/- sales and 12.5% on the sales in excess of 50,000/-. During the month of January last year, her total earning amounted to 27,000/-. How many TV sets did she sell if each set costs 7300/-?arrow_forward2. Benson Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens from farmers and processes them into two different products: chicken drumsticks and chicken steak. From a standard batch of 14,000 pounds of raw chicken that costs $7,450, the company produces two parts: 2,500 pounds of drumsticks and 4,500 pounds of breast for a processing cost of $2,466. The chicken breast is further processed into 3,700 pounds of steak for a processing cost of $1,700. The market price of drumsticks per pound is $1.40 and the market price per pound of chicken steak is $3.70. If Benson decided to sell chicken breast instead of chicken steak, the price per pound would be $2.20. a-3. If the drumsticks are producing a loss, should that product line be eliminated? The drumstick product line be eliminated. b-1. Reallocate the joint cost to the joint products, drumsticks and breasts, using relative market values as the allocation base. Total cost…arrow_forward
- Only typed answer 1. What is the marginal rate of technical substitution at each cost minimizing equilibrium point? 2.How many units of labor should the firm use to produce 1,200 units of output at least cost?arrow_forward# 8 Solve the questions to find all these parts and show a clear working of how you obtained this question.arrow_forwardH6. Your mother owns and runs an arts and craft store, and the business is doing well. She would have otherwise been employed as a high school geography teacher making $80,000 a year or as an interior decorator making $68,000 a year. She owns the building in which her shop is located, which she could have rented out for $24,000 a year. Her annual revenue from the shop is $430,000 and she employs four workers, each of whom earns $30,000 a year. On average, she spends $206,000 per year traveling, purchasing, and shipping unique merchandise for resale at her store. Based on this information, do you think you should encourage her to return to teaching? Explain your advice with the help of calculations on her opportunity costs, accounting profit, and economic profit.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning