Economies of scale more important

Assignment Help Business Economics
Reference no: EM13891930

(a) Answer the same questions as in the previous problem if TC = .5m + 10Q.

(b) In which problem are economies of scale more important? Explain how this affects your outsourcing decision.

Reference no: EM13891930

Questions Cloud

Business indicators measure extent of business regulations : The World Bank Doing Business Indicators measure the extent of business regulations in countries around the world. Compare the U.S., France, Japan, Brazil, and Nigeria in terms of how easily contracts are enforced, how property can be registered, and..
What price might the parties agree upon for the software : A medical expenses billing firm wishes to hire a software firm to design its software to more efficiently handle its billing. Having the programming redesign is worth $1.5 million to the billing firm. The software firm can write and install new progr..
Design to develop the can logo and design : RC Cola is considering marketing a new, fruit flavored soft drink. It hires Mark-D Design to develop the can logo and design. RC calculates that a good design raises can sales and is worth $.75 million to them. Ex-ante, what is Mark-D’s expected prof..
Outsource production of inputs that are large firms : In many modern U.S. industries, the following patterns seem to hold:  Small firms are more likely to outsource production of inputs that are large firms; “Standard” inputs are more likely to be outsourced than “tailor-made” inputs.
Economies of scale more important : Answer the same questions as in the previous problem if TC = .5m + 10Q. In which problem are economies of scale more important? Explain how this affects your outsourcing decision.
Make components according to the cost function : An outside firm can make components according to the cost function TC=1m + 10Q. Suppose it typically produces 10m units. What is this firm’s cost per unit? Suppose that your firm is able to buy components at this cost per unit. If you order 1m units ..
Is vertical integration into pig farming needed to maintain : Large producers of ham and pork food products require a steady supply of pigs over a long period of time to operate efficiently. Is vertical integration into pig farming needed to maintain that steady supply?
Long-run total cost function for firm producing skateboard : The long-run total cost function for a firm producing skateboards is. Calculate the marginal cost function. What is marginal cost at the output level in part b?
Long-run and short-run aggregate supply curve : The classical economists believed that our economy was always at full employment or tending toward full employment. If our economy were operating below full employment, what would happen, according to the classical, to move the economy back toward fu..

Reviews

Write a Review

Business Economics Questions & Answers

  Cross-price elasticity of demand

What do you think the sign and magnitude of the Cross-Price Elasticity of Demand would be between premium juices and soda.

  Explain how many fish should a commercial fisherman try

Explain how many fish should a commercial fisherman try to catch a day. Should he catch as many as possible or return to dock before filling the boat with fish.

  How much will your firms total revenues

You are the manager of a firm that receives revenues of $60,000 per year from product X and $90,000 per year from product Y. The own price elasticity of demand for product X is -1, and the cross-price elasticity of demand between product Y and X is 1..

  Explain the meaning of this phrase as you see it

Macintyre in his account of Aristotelian virtue, states that integrity is the one trait of character that encompasses all the others. How does integrity relate to as Macintyre said, the wholeness of a human life?David Starr Jordan (1851 1931) an edu..

  From the scenario assuming katrinas candies is operating in

from the scenario assuming katrinas candies is operating in the monopolistically competitive market structure and faces

  Reduce output so that average total costs would decline

A farmer is producing where MC = MR. Say that half of the cost of producing wheat is the rental cost of land (a fixed cost) and half is the cost of labor and machines (a variable cost). In the short run, the farmer should shut down because he is maki..

  Phenomenon in light of the definition of property rights

One of the most striking aspects of cities in the former Soviet Union is the poor condition of public places. Streets, parks, libraries, museums, concert halls, and public gathering places of every description are all in very poor condition, revealin..

  What is the annual worth of this investment

Eddie’s Precision Machine Shop is insured for $700,000. The present yearly insurance premium is $1.00 per $100 of coverage. A sprinkler system with an estimated life of 20 years and no salvage value can be installed for $50,000. Annual maintenance co..

  Evaluating the rate of return for the new equipment

Converse Elucidate how you might go about evaluating the rate of return for the new equipment.

  Equilibrium unemployment theory

What would be good textbooks at the graduate level that deal with Labor Economics and Labor-Macro (As in, Equilibrium Unemployment Theory, Shimer Puzzle etc)?

  Calculate its minimum efficient scale of production

A firm produces both crayons and pencils in constant proportions (1/3 and 2/3 respectively). Its costs are C(q1;q2)=1000+10q1+5q2+9q1q2, where q1 is the output of crayons and q2 the output of pencils. Calculate its minimum efficient scale (MES) of pr..

  Command-and-control environmental laws

In the U.S., the command-and-control environmental laws of the early 1970s, together with the ensuing amendments and updates that have been made to them over time,

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