a. On Jackies LRAC curve, what is the average cost of producing 40, 75, and 85 rides

Question:

a. On Jackie’s LRAC curve, what is the average cost of producing 40, 75, and 85 rides a week?

b. What is Jackie’s minimum efficient scale?

c. Does Jackie’s experience economies of scale or diseconomies of scale?

Jackie’s Canoe Rides rents canoes at $100 per day and pays $50 per day for each canoe operator it hires. The table shows the firm’s production function. image text in transcribed

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Economics

ISBN: 9781292433639

14th Global Edition

Authors: Michael Parkin

See More Books

Question Posted: Jan 27, 2024 10:01 PM

See More Questions

Jackies pays $100 a day for each canoe it rents and $50 a day for each canoe operator it hires. a. Graph the ATC curves for Plant 1 and Plant 2. b. On your graph in a, plot the ATC curves for Plant 3...
a. On Jackies LRAC curve, what is the average cost of producing 40, 75, and 85 rides a week? b. What is Jackies minimum efficient scale? The table shows the production function of Jackies Canoe...
a. On Bonnies LRAC curve, what is the average cost of producing (i) 15 rides a day? (ii) 18 rides a day? b. Explain how Bonnies uses its long-run average cost curve to decide how many balloons to...
A bond has an expected return of 15.33%, sensitivity to the term factor of 1.95 and to the default factor of 0.65. The current term risk premium is 3.01%. The risk-free rate of return is 3%. What is...
The figure shows graphs of the cost and revenue functions reported by a manufacturer. (a) Identify on the graph the value of for which the profit is maximized. (b) Sketch a graph of the profit...
Determine whether each equation is an identity, a conditional equation, or a contradiction. Give the solution set. 4(x + 7) = 2(x + 12) + 2(x + 1)
A piece of cloth is discovered in a burial pit in the southwestern United States. A tiny sample of the cloth is burned to CO 2 , and the 14 C/ 12 C ratio is 0.250 times the ratio in todays...
Consider the following network for a small maintenance project (all times are in days; network proceeds from node 1 to node 7): a. Draw an arrow diagram representing the project. b. What is the...
Seri Minyak Bhd uses crude palm oil in producing its products. The company expected to use 200 tonnes of crude palm oil in July 2023 to meet the demand in the festival season. If the price of raw...
Nestl Purina PetCare Plans to Open New Factory in North Carolina Nestl Purina PetCare announced a $450 million investment to open a new factory in North Carolina. Purina plans to employ more than 300...
Graph the average total cost curves for Plant 3 and Plant 4. Explain why they differ. Jackies Canoe Rides rents canoes at $100 per day and pays $50 per day for each canoe operator it hires. The table...
On January 1, 20X2, Harris Inc. paid $40,000 in property taxes on its plant for the calendar year 20X2. In March 20X2, Harris made $120,000 in annual major repairs to its machinery. These repairs...
Bruce Jacks plc is in the process of considering a change in its terms of sale. The current policy is cash only; the new policy will involve one periods credit. Sales are 70,000 units per period at a...
Using the same bond as in Question 9, assume that you believe interest rates are going to increase. What do you think will happen to the value of the bond? What if the bond was a putable convertible...
Your company plans to expand into a new business sector that requires higher levels of capital investment and fixed costs. Holding all else equal, what type of financing (debt or equity) would you...
Is WACC consistent with a target debtequity ratio? Explain.
You have just been appointed as financial manager of a food processing and manufacturing firm. The production engineer has said that the cash cycle of your firm should always be longer than its...
Yount told Lewis he wished to buy Lewiss automobile. He drove the car for about ten minutes, returned to Lewis, stated he wanted to take the automobile to show it to his wife, and then left with the...
Do animals have rights? If so, what are they? What duties do human beings have toward animals? Does KFC protect animal welfare at an acceptable level?
a. Without international trade, what would be the price of a container of roses and how many containers of roses a year would be bought and sold in the United States? b. At the price in your answer...
If the United States puts a tariff of $25 per container on imports of roses, explain how the U.S. price of roses, the quantity of roses bought, the quantity produced in the United States, and the...
If the United States puts a tariff of $25 per container on imports of roses, explain how the U.S. price of roses, the quantity of roses bought, the quantity produced in the United States, and the...
Sales mix and break-even sales Rosenberg Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $291,400, and the sales mix is 30% bats and 70%...
One of Swifty Company's activity cost pools is inspection which has estimated overhead costs of $150000. Swifty produces throw rugs (700 inspections) and area rugs (1300 inspections). what amount of...
Kilt Company had the following information for the year: Direct materials used Direct labor incurred (5,000 hours) Actual manufacturing overhead incurred $110,000 $150,000 $166,000 Kilt Company used...

a. On Jackies LRAC curve, what is the average cost of producing 40, 75, and 85 rides

Question:

Labor (workers per day) Plant 1 10 20 30 40 Canoes 20 40 65 75 10 Output (rides per day) Plant 2 Plant 3 40 55 60 75 75 90 85 100 20 30 Plant 4 65 85 100 110 40

Step by Step Answer:

Based on the image you provided which appears to show the production function for Jackies Canoe Rides I will help you analyze the costs associated with producing different levels of output rides per w...View the full answer

Economics

Students also viewed these Business questions