MICRO ECONOMICS HOMEWORK ASSIGNMENT

Jun 1st, 2014
Steve1995
Category:
Economics
Price: $10 USD

Question description

Phase 3 Individual Project
Deliverable Length:800–1,000 words plus table
Details:

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.

Quantity of Workers

Quantity of Ovens

Quantity of Loaves of Bread Produced

Cost of Ovens

Cost of Workers Per  Week

Total Cost

0

2

0

500

0

500

1

2

50

450

2

2

125

3

2

210

4

2

300

5

2

410

6

2

550

7

2

625

8

2

660

9

2

700

10

2

730


Instructions

  1. Calculate the  total cost and the average total cost, and add it to the table
  2. Calculate the marginal product of labor, and add it to the table.
  3. Calculate the average product of labor, and add it to the table.
  4. Although there seems to be a great demand for your bread, why would productivity decline when you hire more labor in the short run?
  5. What are your marginal costs?
  6. At what point do your marginal costs and your total costs intersect?
  7. Calculate your average total costs, your average fixed costs, and your average variable costs.
  8. What happens to your average variable costs as your output goes up? Why is that?
  9. How would expanding the business affect the economies of scale? When would you have constant return to scale and diseconomies of scale? Provide examples.

Tutor Answer

(Top Tutor) Daniel C.
(997)
School: Cornell University
PREMIUM TUTOR

Studypool has helped 1,244,100 students

8 Reviews


Summary
Quality
Communication
On Time
Value
pmallory
Dec 4th, 2016
" Totally impressed with results!! :-) "
mixedballz
Nov 25th, 2016
" excellent work as always thanks for the help "
Five Star Tutor
Nov 23rd, 2016
" Outstanding Job!!!! "
kiln82
Nov 11th, 2016
" awesome work thanks "
darnay
Nov 2nd, 2016
" The best tutor out there!!!! "
likeplum4
Oct 29th, 2016
" Excellent work as usual "
kpcutie
Oct 6th, 2016
" Excellent job "
Joemoe
Sep 27th, 2016
" <3 it, thanks for saving me time. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1826 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors