1

For each of the following production cost tables, indicate whether there are fyes or no 1....

Question

For each of the following production cost tables, indicate whether there are fyes or no 1....

For each of the following production cost tables, indicate whether there are fyes or no 1. Single product economies of scale
For each of the following production cost tables, indicate whether there are fyes or no 1. Single product economies of scale for service 2. Single product economies of scale for service 3. Economies of scope 4. Multiproduct economies of scale Total costs(000) Number of Services (100) 100 125 130 155 1418 65 1201 Number of Service (100) SA 220 250 255 280 Table 2 Total costs [000) Number of Service Xs (100) s 85 130 220 159 Number of Service Ys (100) 16) 204 226 222 244 267 289 De la cele 186 208 190231 307 330 Table . Total costs 000) Number of Service Xs (100s) 130 175 157 122 Number of Service Ys (100) 154 28 ENER 269 Total costs [000) Number of Service X (100) 818- 20 120 100 52 1 Number of Service Ys (100) Sellel 1731 199 225 252

Answers

Let us first define what these terms are

Economies of scale is when average cost per unit of production comes down as total production increases.

Economies of scope is when the total cost, when the two products are produced together, is less than what it would've been if the two products were manufactured separately.

Now, for single product economies of scale, we need to see if average unit cost is going down when the production for the other product is 0. So, in table one, the unit cost of X is indeed going down when Y is 0. The unit cost drops from 40000/100=400 to 70000/200=350 and so on. So there is single product economies of scale for X in table 1. This we can check for X and Y for each table.

For economies of scope, take any production where both are being produced. In table 1, lets take when we produce 1000 of both X and Y. The total cost is 65000. If we were producing them separately, our total cost would've been 40000+35000=75000. Since this is greater than when producing them together, this means there are economies of scope in Table 1. This we can calculate for each table in the same manner.

Finally, for multiproduct economies of scale, we will have to compare total unit cost change as we increase production. In table 1, when we produce 1000 of both X and Y, total cost is 65000. So unit cost is 65000/2000=32.5. When we produce 2000 of both, the total cost is 120000. Unit cost is 120000/4000=30. As the costs are decreasing with increase in production, there are multiproduct economies of scale. We can check the same way for all tables.

The final filled table is given below.

Table 1 Table 2 Table 3 Table 4
Single product economies of scale (X) Y N N Y
Single product economies of scale (Y) Y Y N Y
Economies of scope Y N Y N
Multiproduct economies of scale Y Y Y Y


Similar Solved Questions

1 answers
If light takes 8 minutes to reach Earth from the sun and 5.3 hours to reach Pluto, what is the approximate distance from the sun to Pluto?
If light takes 8 minutes to reach Earth from the sun and 5.3 hours to reach Pluto, what is the approximate distance from the sun to Pluto?...
1 answers
Checking to see if my highlighted answers are correct???? __d__ 1. What is a standard cost?...
Checking to see if my highlighted answers are correct???? __d__ 1. What is a standard cost? a.   The total number of units times the budgeted amount expected b.   Any amount that appears on a budget c.   The total amount that appears on the budget for product costs d.&n...
1 answers
QUESTION AND ANSWERS TO MEDSURG ATI PROCTOR do you know the questions and answers for medsurg...
QUESTION AND ANSWERS TO MEDSURG ATI PROCTOR do you know the questions and answers for medsurg ati proctor...
1 answers
Use the following to answer questions 22-29 GHT Corporation reports the following amounts in its December...
Use the following to answer questions 22-29 GHT Corporation reports the following amounts in its December 31, 20XD income statement: Cost of goods sold Sales discounts Salaries expense Interest expense $425,000 12,000 285,000 3,000 Net sales Advertising expense Utilities expense Effective income tax...
1 answers
1. Internal rate of return is interest rate where: OA. NPV = 0 OB. PV of...
1. Internal rate of return is interest rate where: OA. NPV = 0 OB. PV of benefits = PV of costs C. Annual benefits = annual costs OD. All of the above E. None of the above...
1 answers
What are ecotypes and how do you test for them
What are ecotypes and how do you test for them...
1 answers
Question3 and4 please QUESTION 3 0 points Save Answer Which of the following statements is (are)...
Question3 and4 please QUESTION 3 0 points Save Answer Which of the following statements is (are) true about the comparative properties of the atlatil and the bow as a weapon technology? O a The bow has a lower opportunity cost of use and, thus, allows adaptive social coercion on an everyday basis O ...
1 answers
Webwork mu stat 1200 wbwk /S WBWK6: Problem 3 Prev Up Next gorillas in 7 home...
webwork mu stat 1200 wbwk /S WBWK6: Problem 3 Prev Up Next gorillas in 7 home ranges in the Congo. To study the spread of the virus, measure distance by the (1 pt) An outbreak of the deadly Ebola virus in 2002 and 2003 kiled number of home ranges separating a group of gorilas from the first group in...
1 answers
Consider the reaction 2H2O(g) →2H2(g) + O2(g) ΔH = +483.60 kJ/mol at a certain temperature. If...
Consider the reaction 2H2O(g) →2H2(g) + O2(g) ΔH = +483.60 kJ/mol at a certain temperature. If the increase in volume is 27.7 L against an external pressure of 1.00 atm, calculate ΔU for this reaction. (The conversion factor is 1 L· atm = 101.3 J.) _______kJ...
1 answers
Drawing Glycolytic intermediates. Glucose labeled with 14_C at C-1 was incubated with the glycolytic enzymes and...
Drawing Glycolytic intermediates. Glucose labeled with 14_C at C-1 was incubated with the glycolytic enzymes and necessary cofactors. Draw structures to show the transformation of glucose to two molecules of glyceraldehyde 3-phosphate via the first half of glycolysis, clearly indicating the position...
1 answers
Flask is filled with 1.59 L (L = liter) of a liquid at 94.2 °C. When...
flask is filled with 1.59 L (L = liter) of a liquid at 94.2 °C. When the liquid is cooled to 14.7 °C, its volume is only 1.32 L, however. Neglect the contraction of the flask. What is the coefficient of volume expansion of the liquid?...
1 answers
Nippon Steel’s expenses for heating and cooling a large manufacturing facility are expected to increase according...
Nippon Steel’s expenses for heating and cooling a large manufacturing facility are expected to increase according to an arithmetic gradient beginning in year 2. If the cost is $550,000 this year (year 0) and will be $550,000 again in year 1, but then it is estimated to increase by $58,000 each...
1 answers
What are the journal entries for the following? Received a certified check for $1310.00 from a...
What are the journal entries for the following? Received a certified check for $1310.00 from a customer Alice Cordero as payment in full on her account. Ms. Cordero's account was written off as uncollectible on November 15 of this year....
1 answers
In the synthesis of pentyl pentanoate using a Fisher esterification, if there is contamination of your...
In the synthesis of pentyl pentanoate using a Fisher esterification, if there is contamination of your ester with some residual alcohol, how will this affect the refractive index of your ester? Explain your answer using literature values (properly referenced)....
1 answers
4. Fill-in-the-blanks: draw the missing reactants or products involved in the following single or multi-step reactions....
4. Fill-in-the-blanks: draw the missing reactants or products involved in the following single or multi-step reactions. Indicate stereochemistry and draw multiple stereoisomers where applicable. i EtOH EtOH [H2SO4] 1) EtMgBr 2) H20 5. For most ketones, hydrate formation is unfavorable, because the e...
1 answers
Suppose that at the start of the year, no-load mutual fund has a net asset value...
Suppose that at the start of the year, no-load mutual fund has a net asset value of $27.80 per share. During the year, it pays its shareholders a capital gain and dividend distribution of $1.16 per share and finishes the year with an NAV of $30.18. a. What is the return to an investor who holds 258....
1 answers
Describe in your own words process of transcription and translation. No less than 100 words
describe in your own words process of transcription and translation. No less than 100 words...
1 answers
Tax 9) Financing activities: (2pts) involve obtaining funds to operate a business involve obtaining assets such...
tax 9) Financing activities: (2pts) involve obtaining funds to operate a business involve obtaining assets such as buildings or equipment Ohelp to earn revenue and profits Ohelp to make wise investments in other companies...

-- 0.047150--