Question: Hi, how do I work on question A, B and C? IC Question 5 B2200C Microeconomics The following table shows a long-run production change from

Hi, how do I work on question A, B and C?

Hi, how do I work on question A, B and C? IC

IC Question 5 B2200C Microeconomics The following table shows a long-run production change from initial scenario to each of Scenarios A, B and C for Pizza Hut. Scenario Labour used (workers) Pizza Oven Total Number of Pizza Initial 4 2 10 A 6 3 12 B 8 A 40 C 12 6 30 a. With appropriate calculations, identify and explain which type of returns of scale is applicable when going from initial scenario to Scenario A. Your calculations should be expressed in term of percentages 40 - 8 x 100% 30-12 x100% 10- 4x100 010 12- 6 x 1 8 12 4 6 - x 100% = 1000 = 400% = 150% = 150%% b. With appropriate calculations, identify and explain which type of returns of scale is applicable when going from initial scenario to Scenario B. Your calculations should be expressed in term of percentages. c. With appropriate calculations, identify and explain which type of returns of scale is applicable when going from initial scenario to Scenario C. Your calculations should be expressed in term of percentages. ----- End of Practice Questions ----- Page 5 RP/SMC/DIHRM/TERM4/ZC

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