Bikes is major manufacturer of bicycles

Assignment Help Business Economics
Reference no: EM131172791

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 (SRATC) each month for various levels of production if it uses one, two, or three factories. Suppose Ike's Bikes is currently producing 600 bikes per month in its only factory. Its short-run average total cost is $800 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 using three factories. On the following graph, plot the three SRATC curves for Ike's Bikes from the previous table. Specifically, use the green points (triangle symbol) to plot its SRATC if it operates one factory (SRATC_1); use the purple points (diamond symbol) to plot its short-run average total cost if it operates two factories (SRATC_2); and use the orange points (square symbol) to plot its SRATC if it operates three factories (SRATC_3). Finally, plot the long-run average total cost (LRATC) for Ike's Bikes using the blue points (circle symbol). 

Reference no: EM131172791

Questions Cloud

Accounting profit economic profit : Brian lives in Chicago and runs a business that sells pianos. In an average year, he receives $735, 000 from selling pianos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $435, 000; he also pays wages and utility bills total..
Use of power and influence by the henry fonda character : 1) Chronicle the use of power and influence by the Henry Fonda character.  What power sources did he have?  What influence tactics did he use? 2) What other jurors used their power and influence and how effective were they?
Program for evaluating the stability of a rectangular block : Compare the location of the metacenter with the center of gravity to evaluate stability.
Why knowledge management particularly important to a company : Why is knowledge management particularly important to a company that wants to learn and change continuously rather than operate at a stable state?
Bikes is major manufacturer of bicycles : 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 t..
Who primarily uses this social media site : User profile benefits: Who primarily uses this social media site? Demographics? Why do users/subscribers use this tool? What do they expect from it? Why did they turn to it?
Cover letter applying for the job : Write a resume and a cover letter applying for the job. Submit your resume and cover letter. Remember and apply what you've learned so far on persuasion and writing letters. Using materials from Module 1 on goodwill communication and from Module 2..
What is meant by the integrated enterprise : Describe how organizations can use extranets to extend and enhance horizontal relationships required for enterprise integration.
What fiscal policy measure has more direct impact to economy : Determine what fiscal policy measure has a more direct impact to the economy. Is it an increase in government spending or an equal decrease in taxes if consumer confidence is lower than the previous month?

Reviews

Write a Review

 

Business Economics Questions & Answers

  Current operating expenses would remain the same

Replace the machine with a new one costing $49K. Depreciation would be SL to zero over the 7 years of its life. Operating costs would be reduced by $7Kpa.

  Andreas four year university degree

She is considering quitting her job and going to university full time for four years.

  The overwhelming majority of federal cases

The overwhelming majority of federal cases are resolved in the _____.

  Explain how does your graph relate to the other two graphs

Explain how does your graph relate to the other two graphs. What do any of these graphs have to do with price discrimination.

  Use the opportunity cost approach

A specialty concrete mixer used in construction was purchased for $300,000 5 years ago. It is MACRS-GDS 5-year property. Its annual O&M costs are $105,000. The remaining useful life is 8-years and the end of the 8-year planning horizon, the mixer wil..

  Relationship between social auditing and crisis management

What is the relationship between social auditing and crisis management? What can organizations do to become better prepared for preventing and responding to ethical misconduct?

  Create an overview of the organization

Create an overview of the organization (history, type of product or service, type of organization, management style, organizational values, mission statement.

  Fixes the price of foreign exchange below equilibrium

Classify each of the following as debits or credits in the U.S. balance of payments. Americans buy chocolate from the Swiss. U.S. What will happen to a country that fixes the price of foreign exchange below equilibrium?

  The costs of production that require monetary payment

The costs of production that require monetary payment: A period too brief for some production inputs to be varied: Occur in an output range where LRATC rises as output expands: The relationship between the quantity of inputs and the quantity of outpu..

  Which three key concepts drive intra-industry trade

Which three key concepts drive intra-industry trade? Explain how each of these three forces justifies intra-industry trade patterns!

  Using the scarce resource clean air

From an economist's perspective, an important consideration for policies to address global warming is: When a producer cannot get all consumers of their product to pay for enjoying it, such as in the case of a fireworks display, then we'd have a dema..

  Rationale and efficiency effect of strategies

Identify the exclusionary pricing practices and why and when they are prohibited by the Competition Act. What are the economics rationale and efficiency effect of these strategies?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd