31. Applied Optimization Due Wednesday, Mar 25, 11:59pm CDT O Find the economic lot or economic order quantity size which minimizes total cost Question A company produces and sells 2, 500 sets of silverware each year. Each production run has a fixed cost of $200 and an additional cost of $5 per set of silverware. To store a set for a full year costs $4. What is the optimal number of production runs the company should make each year? Do not include units with your answer. Provide your answer below: MAR 25 Q Search or type URL +) 2$ 3 4 т K в command M. * 00 つ D.

31. Applied Optimization Due Wednesday, Mar 25, 11:59pm CDT O Find the economic lot or economic order quantity size which minimizes total cost Question A company produces and sells 2, 500 sets of silverware each year. Each production run has a fixed cost of $200 and an additional cost of $5 per set of silverware. To store a set for a full year costs $4. What is the optimal number of production runs the company should make each year? Do not include units with your answer. Provide your answer below: MAR 25 Q Search or type URL +) 2$ 3 4 т K в command M. * 00 つ D.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 40P: Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from...

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Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. COST PER BIKE (Dollars) 400 360 320 280 240 200 160 120 80 40 0 O 0 O 100 200 300 400 500 QUANTITY OF OUTPUT (Bikes) 600 More than 400 bikes per month Fewer than 300 bikes per month Between 300 and 400 bikes per month 700 SRATC₁ SRATC₂2 SRATC3 In the long run, over which range of output levels does Ike's Bikes experience constant returns to scale? LRAC (?
5. Costs in the short run versus in the long run 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. (Note: Q equals the total quantity of bikes produced by all factories.) Number of Factories Q = 100 1 2 3 360 540 720 Q=200 200 300 400 Average Total Cost (Dollars per bike) Q = 300 Q = 400 160 240 160 240 160 160 Q = 500 400 300 200 Q = 600 720 540 360 Suppose Ike's Bikes is currently producing 500 bikes per month in its only factory. Its short-run average total cost is S per bike, Suppose Ike's Bikes is expecting to produce 500 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using On the following graph, plot the three SRATC curves for…
Problem: Below are hypothetical data for a manufacturer, processing a fixed plant, who produces a commodity that requires only one variable input. Total product is given. Compute and graph the average and marginal product curves. Units of Variable input 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Total Product 100 250 410 560 700 830 945 1,050 1,146 1,234 1,314 1,384 1,444 1,494 1,534 1,564 1,584 1,594 Average Product Marginal Product
1. Definition of economic costs Yakov lives in San Diego and operates a small company selling bikes. On average, he receives $694,000 per year from selling bikes. Out of this revenue from sales, he must pay the manufacturer a wholesale cost of $392,000. He also pays several utility companies, as well as his employees wages totaling $289,000. He owns the building that houses his storefront; if he choose to rent it out, he would receive a yearly amount of $2,000 in rent. Assume there is no depreciation in the value of his property over the year. Further, if Yakov does not operate the bike business, he can work as a programmer and earn a yearly salary of $20,000 with no additional monetary costs, and rent out his storefront at the $2,000 per year rate. There are no other costs faced by Yakov in running this bike company. Identify each of Yakov’s costs in the following table as either an implicit cost or an explicit cost of selling bikes. Implicit Cost Explicit Cost…
19. Table 13-16 Total Cost Fixed Cost Variable Marginal Cost Average Average Average Total Cost Cost Fixed Cost Variable Cost 0. 524 S16 S50 3. St08 4. 540 Refer to Table 13-16. What is thefxed cost of producing O units of output? a. S16 b. S24 c. S12 d. So 20. Refer to Table 13-16 in Question 19 What is the totalcost of oroducing 2 units ooutput? b. 574 css8 21. Refer to Table 13-16 in Question19. What is the marg nal cost of the 4th unit of output? bS136 540 d Sc8
1. Definition of economic costs Shen lives in San Diego and operates a small company selling drones. On average, he receives $727,000 per year from selling drones. Out of this revenue from sales, he must pay the manufacturer a wholesale cost of $427,000. He also pays several utility companies, as well as his employees wages totaling $254,000. He owns the building that houses his storefront; if he choose to rent it out, he would receive a yearly amount of $31,000 in rent. Assume there is no depreciation in the value of his property over the year. Further, if Shen does not operate the drone business, he can work as a blogger and earn a yearly salary of $26,000 with no additional monetary costs, and rent out his storefront at the $31,000 per year rate. There are no other costs faced by Shen in running this drone company. Identify each of Shen's costs in the following table as either an implicit cost or an explicit cost of selling drones. Implicit Cost Explicit Cost The wholesale cost for…
1.Joe quits his computer programming job, where he was earning a salary of $50,000 per year, to start his own computer software business in a building that he owns and was previously renting out for $24,000 per year. In his first year of business he has the following expenses: salary paid to himself, $40,000; rent, $0; other expenses, $25,000. Find the accounting cost and the economic cost associated with Joe’s computer software business.
The figure to the right illustrates the long-run average cost curve for a company that makes motors. Suppose the company produces & thousand moters per month. Is it experiencing economies of scale, diseconomies of scale, or constant returns to scale? If the company produces 4 theusand motors, then it experiences Average total cont 45.00 44.00 40 00 36.00 32.00 28.00 24.00 20.00 16.00 12:00 5.00 4.00 0.00 Long-nun average cost 4610 12 14 16 18 20 Quantity (motors per month in 1,000)