Question
Offered Price $15.00

Small bread factory and are thinking of lowering costs

Question # 00580003
Subject: Economics
Due on: 08/29/2017
Posted On: 08/29/2017 05:40 AM

Rating:
4.1/5
Expert tutors with experiences and qualities
Posted By
Best Tutors for school students, college students
Questions:
96880
Tutorials:
96981
Feedback Score:

Purchase it
Report this Question as Inappropriate
Question

Calculating costs for a bread factory

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.

Develop a table that you believe shows the explicit fixed costs of the bread factory and the total amount of the costs.

Describe your variable 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

0

2

0

500

0

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

Calculate the total cost and the average total cost, and add it to the table

Calculate the marginal product of labor, and add it to the table.

Calculate the average product of labor, and add it to the table.

Although there seems to be a great demand for your bread, why would productivity decline when you hire more labor in the short run?

What are your marginal costs?

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

Calculate your average total costs, your average fixed costs, and your average variable costs.

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

How would expanding the business affect the economies of scale? When would you have constant return to scale and diseconomies of scale? Provide examples.

Where is the optimal level of production and the optimal level of prices in the short run?

Please submit your assignment.

Tags lowering costs thinking factory bread small costs average variable total bread labor marginal cost technological short busine fixedcosts production decide product small factory workersquantity expanding advisors hire decline workers week020500012504502212532210423005241062550726258266092700102730instructionscalculate productivity demand thetablecalculate addit thetablealthough great

Tutorials for this Question
Available for
$15.00

Small bread factory and are thinking of lowering costs

Tutorial # 00577969
Posted On: 08/29/2017 05:41 AM
Posted By:
Best Tutors for school students, college students dr.tony
Expert tutors with experiences and qualities
Questions:
96880
Tutorials:
96981
Feedback Score:
Report this Tutorial as Inappropriate
Tutorial Preview …factory xxx are…
Attachments
Small_bread_factory_and_are_thinking_of_lowering_costs.ZIP (18.96 KB)
Preview not available.
Purchase this Tutorial @ $15.00 *
* - Additional Paypal / Transaction Handling Fee (3.9% of Tutorial price + $0.30) applicable
Loading...