Range of production characterized by economies of scale

Assignment Help Business Economics

Reference no: EM131076326

Let a firm's total cost be TC=800+8q+8q^2, its marginal cost is then given by MC=8+16q a) Derive an expression for the firm's average cost function B) Find the range of production characterized by economies of scale c)Do you think that economies of scale constitute a serious barrier to entry into this industry? Explain

Reference no: EM131076326

Questions Cloud

All income in economy is either profit income or wage income : Firm C produces 1,000 pounds of cotton at a cost of 50 cents per pound. They sell all of the cotton to Firm S for 75 cents per pound. Firm S makes 1,000 t-shirts with the cotton for a total cost of $1.50 per t-shirt. They sell all of the shirts to Fi..

Sufficient to increase our population standard of living : My contention is the US is not expanding its production possibilities enough to lead to an increase in our PPC sufficient to increase our population’s standard of living. List two policies that the US government could use that would likely increase o..

Why the government keeps these import restrictions in place : In 2013, U.S. sugar imports are restricted by way of an import quota. The domestic sugar price is kept above the world market price of sugar by way of a federal domestic price guarantee. IN comparing the cost or benefit of every job saved in the suga..

Range of production characterized by economies of scale : Let a firm's total cost be TC=800+8q+8q^2, its marginal cost is then given by MC=8+16q a) Derive an expression for the firm's average cost function B) Find the range of production characterized by economies of scale c)Do you think that economies of s..

Equilibrium output level and the efficient output level : The government could correct the difference between the equilibrium output level and the efficient output level by

Statistics regarding the performance on final calculus exam : Assume that we draw two random samples of students from Coles college of Business. One group includes 10 economics majors and another includes 30 finance majors. From these two groups we obtain the following statistics regarding the performance on th..

Define geographic and product markets of large healthcare : How would you define the geographic and product markets of large healthcare organizations such as the Mayo Clinic, Cleveland Clinic, Kaiser Permanente, and Johns Hopkins?

Role of velocity during periods of rapid price change : Suppose price levels were falling 10% per day. How would this affect the demand for money? How would it affect velocity? What can you conclude about the role of velocity during periods of rapid price change?

User Account

All Pages