4.8
4.9
4.7

# Production Cost Analysis and Estimation Applied Problems

Problem 1:

William is the owner of a small pizza shop and is thinking of increasing
products and lowering costs. William s pizza shop owns four ovens and
the cost of the four ovens is \$1,000. Each worker is paid \$500 per week.

each question in complete sentences, whenever it is necessary.

Which inputs are fixed and which are variable in the production
function of William s pizza shop? Over what ranges do there appear to be
increasing, constant, and/or diminishing returns to the number of
workers employed?What number of workers appears to be most efficient in terms of pizza product per worker? What number of workers appears to minimize the marginal cost of
pizza production assuming that each pizza worker is paid \$500 per week? Why would marginal productivity decline when you hire more workers in the short run after a certain level?How would expanding the business affect the economies of scale?
When would you have constant returns to scale or diseconomies of scale?

Problem 2:

The Paradise Shoes Company has estimated its weekly TVC function from
data collected over the past several months, as TVC = 3450 + 20Q +
0.008Q2 where TVC represents the total variable cost and Q represents
pairs of shoes produced per week. And its demand equation is Q = 4100
25P. The company is currently producing 1,000 pairs of shoes weekly and
is considering expanding its output to 1,200 pairs of shoes weekly. To
do this, it will have to lease another shoe-making machine (\$2,000 per
week fixed payment until the lease period ends).

each item below in complete sentences, whenever it is necessary.

Describe and derive an expression for the marginal cost (MC) curve.Describe and estimate the incremental costs of the extra 200 pairs per week (from 1,000 pairs to 1,200 pairs of shoes).What are the profit-maximizing price and output levels for
Paradise Shoes? Describe and calculate the profit-maximizing price and
output.Discuss whether or not Paradise Shoes should expand its output
further beyond 1,200 pairs per week. State all assumptions and

## Ordering Homework Writing Service

You can get our ideal online homework help services with four easy steps. All you have to do is inform us of your requirements. Immediately we will match with a specialist in your academic discipline. After that, we will track your order, review it to ensure it meets your requirements, and submit it to your email.

#### Submit Requirements

Fill in your assignment instructions on the order form

#### Quality review

We have a team of editors, who will thoroughly review your assignment, ensuring there are no errors before submission

### Affordable

Budget-friendly writing services

### Privacy

We don’t share our client’s information with a third party

### Unique

We write every assignment from scratch

## Amazing Homework Writing Features

Once you consult us for homework help online services, you will attest to why we are among the USA's best essay writing services.

Read on and find out some of the features that make our services superlative.

## Free Homework Writing Services

#### Free plagiarism checker

You can confirm that the content you get is original for free using our plagiarism checker.

#### Free title page and bibliography

Once you place an order, we format it accordingly without demanding additional charges.

#### Free unlimited revisions

We offer free unlimited revisions until your assignment is of your desired quality..