# Phase 3 Individual Project Deliverable - You are the owner of a small

Question # 00852387 Posted By: wildcraft Updated on: 03/26/2024 05:13 AM Due on: 03/26/2024
Question

Phase 3 Individual Project Deliverable Length

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.

Develop a table that you believe shows 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 Instructions

1.Graph the total cost and the average total cost.

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.What is the significance if one is greater than the other?

5.Although there seems to be a great demand for your bread, why would productivity decline when you hire more labor in the short run? How would that reflect on your production graph?

6. What are your marginal costs?

7.At what point do your marginal costs and your total costs intersect?

8.What happens to the total costs after this point?

10.Is your marginal cost greater than or less than your average variable cost or your average total cost? What does that mean? Where do you want your marginal costs to be?

11. What happens to your average variable costs as your output goes up? Why is that?

12.Explain why in the bread-making business that, in the long run, all costs are variable and the average total costs equals the average variable costs. How would expanding the business affect the economies of scale? When would you have constant return to scale and diseconomies of scale? Provide examples.

13.Where is the optimal level of production and the optimal level of prices in the short run? Is there enough information to make a decision for the long run? What information do you need?

Tutorials for this Question
1. ## Solution: Phase 3 Individual Project Deliverable - You are the owner of a small

Tutorial # 00847867 Posted By: wildcraft Posted on: 03/26/2024 05:14 AM
Puchased By: 2
Tutorial Preview
The solution of Phase 3 Individual Project Deliverable - You are the owner of a small...
Attachments
Phase_3_Individual_Project_Deliverable_-_You_are_the_owner_of_a_small.ZIP (18.96 KB)

Great! We have found the solution of this question!