Home » ECONOMICS; Explain what a technological change is and how you can use it to lower your costs Custom Essay

ECONOMICS; Explain what a technological change is and how you can use it to lower your costs Custom Essay

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
  1. Calculate the  total cost and the average total cost, and add it to the table
  2. Calculate the marginal product of labor, and add it to the table.
  3. Calculate the average product of labor, and add it to the table.
  4. Although there seems to be a great demand for your bread, why would productivity decline when you hire more labor in the short run?
  5. What are your marginal costs?
  6. At what point do your marginal costs and your total costs intersect?
  7. Calculate your average total costs, your average fixed costs, and your average variable costs.
  8. What happens to your average variable costs as your output goes up? Why is that?
  9. How would expanding the business affect the economies of scale? When would you have constant return to scale and diseconomies of scale? Provide examples.
  10. Where is the optimal level of production and the optimal level of prices in the short run?
Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more