Economics for Business Decisions Term Paper Example | Topics and Well Written Essays - 3250 words

Economics for transmission line Decisions - Term Paper ExampleIf Always spoke Tire two-basers the size of its production facility increasing L from 250 to 500 and K from 25 to 50 what happens to the make up of production, even though we do not know the wages of labor or the price of capital? This production exhibits increasing returns to outmatch. Doubling the scale of production will more than double the quantity of output. Costs per unit will decline because the firm takes advantage of the economies of scale. Why do economies of scale and learning curve effects look similar when they argon graphed? What different concepts do they represent? A graph of economies of scale plants that average costs per unit of output take up when the quantity of output increases. However, this decrease in the average cost per unit of output occurs at a decreasing rate. Economies of scale show the cost advantages larger firms have in some industries, like basic metals, where costs per unit f all with the cumulative volume of output. A graph of a learning curve shows that average costs per unit of output fall when the cumulative quantity of output produced since inception increases. This decrease in the average cost per unit of output occurs at a decreasing rate. Learning curves show the cost advantages firms that have cumulatively produced greater amounts of output have in some industries, like semiconductors. For many corporations, a major lot of the cost of production is fixed in the short run. ... In the long-run all costs are variable costs and there are no long-run fixed costs. Wanda Weeks is tired of running her secondary machine quill company. She wishes to sell it in order use her time and money elsewhere. She is currently earning a salary of $85,000 per year and a 10% return on her capital investment. She wants to take a line of descent in a bank and invest her capital in a mutual fund. What issues should she look at before making the decision to change ca reers? She should look at the opportunity cost of her time and capital. The positive opportunity cost running her machine tool business is the value of both her time and her capital. She should compare how much she could earn from both labor income and selling her capital investment in the machine tool business to her current labor income and capital return as the owner of this business. The capital of Illinois Bank reliable 1500 inquires following its latest advertisement describing its establish a Certificate of Deposit (CD)-get a free CD (compact disk) promotion in the Springfield Shopper, a local newspaper. The most recent similar ad in a similar advertising campaign in the Brockman Business Newsletter, a local business return generated 500 inquires. Each ad in the Springfield Shopper costs $500. Each ad in the Brockman Business Newsletter costs $125. Inquires from both publications have the same success rate in turning inquires into sales. (a.) assuming that additional ads will generate similar response rates, is Springfield Bank running an optimal strut of ads in the Springfield Shopper and the Brockman Business Newsletter? Why or why not? (b.) If you claim that the Springfield Bank is currently running an optimal mix of ads clearly explain why they are utilise an optimal mix of ads. If you claim that the Springfield