  Home Study tools

 My courses
 My books Career Life Study Pack 

Find solutions for your homework Search

home / study / business / economics / economics questions and answers / 5. costs in the short run versus in the long run ike's bikes is a major man…

Question: 5. Costs in the short run versus in the long run Ike's Bikes is a … Post a question
Answers from our experts for your tough
homework questions
(2 bookmarks)

Enter question

Continue to post
20 questions remaining

Snap a photo from your

phone to post a question
We'll send you a one-time dow
link

888-888-8888 Text m

By providing your phone number, you agree to receive a

automated text message with a link to get the app. Stand
messaging rates may apply.

My Textbook Solutions
Blank Part: One factory, two factories or three
factories. Instant access to step-by-step solutions fo
textbooks

Add a Add a Add

textbook textbook textb

. ‫ الجديدة كليًا‬2021 ‫ن صني‬

.‫في فئتها‬

Show transcribed image text

Expert Answer

Sulagna answered this

Was this answer helpful? 9 0
998 answers
 (1) To produce 50 bikes using 1 factory, short run average cost
is $180.
  Home Study tools
 My courses
 My books Career Life Study Pack 
(2) In long run it will produce using 1 factory
(Because SATC is minimum when Q = 50).

(3) The long-run average cost curve is the envelope curve that
is tangent to the minimum points of short
run average cost curves,
as shown below.

(4)

(i) Between 150 and 200 bikes - Constant returns to

scale (LRATC is horizontal in this range)

(ii) More than 200 bikes - Diseconomies of

scale (LRATC is upward rising in this range)

(iii) Fewer than 150 bikes - Economies of scale

(LRATC is downward sloping in this range)

View comments (1)



Practice with similar questions

Q: For
question 2, the choices are one factory, two factories, or 3
factories

A: See answer

Q: The second blank options are

one factory, two factories or three factories.

A: See answer 100% (2 ratings)

Show more 

Questions viewed by other students

Q: Costs in the short run versus in the long run

Ike's Bikes is a major manufacturer of bicycles. Currently, the
company
produces bikes using only one factory. However, it is
considering expanding production to two or even three
factories.
The following table shows the company's short-run average total
cost (SRATC) each month for various
levels of production if it uses
one, two, or...

A: See answer

Q: 5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycdes. Currently, the company
produces bikes using only one factory. However, it is considering expanding production to two or even three
factories. The following table shows the company's short-run average total cost (SRATC) each month for various
levels of production if it uses one, two, or...

A: See answer 92% (13 ratings)

Show more 
  Home Study tools
 My courses
 My books Career Life Study Pack 

COMPANY

LEGAL & POLICIES

CHEGG PRODUCTS AND SERVICES

CHEGG NETWORK

CUSTOMER SERVICE

© 2003-2021 Chegg Inc. All rights reserved.