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You are the owner of a small bread factory and are thinking of lowering costs and expanding. Your small-business advisors suggested that you first review your operations and make some technological changes. Complete the following:
Explain what a technological change is and how you can use it to lower your costs.
The next thing that your small business advisors asked you to do was to break down your costs and see what you can reduce.
Fill in the table below showing the explicit fixed costs of the bread factory and the total amount of the costs.
Because you are not an expert yet on analyzing costs and optimal production levels, you decide to do a very simple analysis of your short-run fixed and variable costs if you expand. You decide that your only fixed cost will be the ovens and the variable costs will be the workers.
Total Cost
0
2
500
1
50
450
125
3
210
4
300
5
410
6
550
7
625
8
660
9
700
10
730
Instructions
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