Cost of producing 600 small fiberglass sailboats per year

Assignment Help Microeconomics
Reference no: EM13391532

The cost of producing 600 small fiberglass sailboats per year, and the cost of producing sails and fittings necessary to make the boats seaworthy in a single plant, are together $780,000. If produced in separate plants, the boats would cost $540,000, and the sails and fittings would cost $180,000. From this information.

a. Calculate the economies of scope in the production of sailboats, sails, and fittings?

b. What can you conclude from your solution (i.e. should they be produced together by one firm or separately by different firms? Why?

Reference no: EM13391532

Questions Cloud

Alex fiani corporation produces egg cartons which are sold : alex fiani corporation produces egg cartons that are sold to egg distributors. alex fiani corporation has estimated
The price elasticity of demand coefficient : the price elasticity of demand coefficient measuresa. buyer responsiveness to price changes.b. the extent to which a
Which of the two options should patricia pursue if she : patricia is researching venues for a restaurant business. she is evaluating three major attributes that she considers
The uniform law issued in 1984 by the committee on : the uniform law issued in 1984 by the committee on corporate laws of the american bar association that regulates the
Cost of producing 600 small fiberglass sailboats per year : the cost of producing 600 small fiberglass sailboats per year and the cost of producing sails and fittings necessary to
What makes a contribution income statement unique discuss : what makes a contribution income statement unique? discuss how a contribution income statement could be used to improve
Read case study no 22 ldquobright light innovations the : read case study no. 22 ldquobright light innovations the starlight stoverdquo on pages 567-568. what should be the
Illustrate the difference between persuasion and : what is the difference between persuasion and manipulation? how do arguments and language affect the way in which they
Find out the equilibrium price and sales find out the : q1 the demand for packs of pokemon cards is given by the equation qd 500000 - 45000p. ata price of 2.50 per pack what

Reviews

Write a Review

Microeconomics Questions & Answers

  Why would firms in such an industry have little incentive

If all the assumptions of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development What condition would encourage research and development in competitive..

  How does the fed have goal independence

How does the federal reserve have a high degree of instrument independence? If it has a specific mandate from Congress to achieve "maximum employment and low, stable prices," then how does the Fed have goal independence?

  Calculate her utility maximizing choice of food and clothing

Calculate her utility maximizing choice of food and clothing and calculate the level of utility her optimal consumption bundle gives to her.

  How to identify the part of the business cycle

Identify the part of the business cycle that is characterized by:  The economy is at full employment.  The growth rate of aggregate demand exceeds the growth rate of aggregate supply. Recession. Recovery and non-inflationary growth.

  Find linear demand and supply curves

Find linear demand and supply curves that are consistent with this information and how would the equilibrium price of ethanol motor fuel in the first half of 2008 compare to the price in 2007?

  Primary deficit

Explain what happens to the primary deficit in year t if the nominal interest rate in year t increases to 17%.

  Why is the revenue of the average sole proprietorship less

There are many more sole proprietorhips than corporations or partnerships. Why are there so many sole proprietorships Why is the revenue of the average sole proprietorship less than that of the typical corporation

  How does the theory affect policy makers

Explain the monetarist's quantity theory of money including the significance of each component of the exchange equation and the assumptions of the model. If our goal is to focus on growth in the economy, how does this theory affect policy makers

  Devise a pricing plan that would enhance profitability

BAA is a private company that operates some of the largest airports in the United Kingdom, including Heathrow and Gatwick - The additional cost BAA incurs each time one of the 90 different airlines utilizes the runway is £950 provided 70 or fewer ai..

  Would series of bank runs in country decrease total quantity

Would a series of bank runs in a country decrease the total quantity of M1 Wouldn't a bank run simply result in funds moving from a checking account to currency in circulation How could that movement of funds decrease the quantity of money

  Plot the supply and demand curves on a plot with quantity

Plot the supply and demand curves on a plot with "Quantity of houses" on the horizontal axis, and "Price of houses" on the vertical axis.

  Why private firms would not run a lighthouse

In the old days lighthouses were built along the coast to prevent ships from running aground on rocks in unfamiliar ports. By shining a beam of light over a port and guiding ships away from rocks, these vital buildings reduced the risk for ship ca..

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