Production Cost Analysis and Estimation Applied Problems
PLEASE DO NOT SUBMIT A BID IF YOU ARE NOT PROFICIENT IN ECONOMICS.
Please finished the behindcited two applied problems:
William is the proprietor of a fine pizza fund and is thinking of increasing results and gloomy requires. William’s pizza fund owns lewd ovens and the require of the lewd ovens is $1,000. Each worker is employd $500 per week.
Qty of pizzas manufactured per week
Show all of your calculations and processes. Describe your response for each scrutiny in finished sentences, whenever it is indispensable.
a. Which inputs are agricultural and which are wavering in the formation office of William’s pizza fund? Aggravate what ranges do there tally to be increasing, firm, and/or powerless receipts to the reckon of workers occupied?
b. What reckon of workers tallys to be most prolific in provisions of pizza result per worker?
c. What reckon of workers tallys to minimize the ultimate require of pizza formation inflated that each pizza worker is employd $500 per week?
d. Why would ultimate resultivity disengage when you employ more workers in the concise run behind a convinced equalize?
e. How would enlargeing the office influence the economies of flake? When would you accept firm receipts to flake or diseconomies of flake? Describe your response.
The Paradise Shoes Fraternity has considerd its weekly TVC office from grounds serene aggravate the departed distinct months, as TVC = 3450 + 20Q + 0.008Q2 where TVC represents the aggregate wavering require and Q represents pairs of shoes manufactured per week. And its claim equation is Q = 4100 – 25P. The fraternity is currently supple 1,000 pairs of shoes weekly and is regarding enlargeing its output to 1,200 pairs of shoes weekly. To do this, it earn accept to lease another shoe-making deed ($2,000 per week agricultural liquidation until the lease epoch ends).
Show all of your calculations and processes. Describe your response for each item adown in finished sentences, whenever it is indispensable.
a. Describe and trace an indication for the ultimate require (MC) incurvation.
b. Describe and consider the incremental requires of the extra 200 pairs per week (from 1,000 pairs to 1,200 pairs of shoes).
c. What are the profit-maximizing compensation and output equalizes for Paradise Shoes? Describe and weigh the profit-maximizing compensation and output.
d. Discuss whether or not Paradise Shoes should enlarge its output exalt past 1,200 pairs per week. State all assumptions and qualifications that underlie your recommendation.