# Production Cost Analysis and Estimation Applied Problems

Production Cost Analysis and Estimation Applied Problems
July 5, 2016 by
Production Cost Analysis and Estimation Applied Problems
Please complete the following two 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.
Workers employed Qty of pizzas produced per week
0
1
2
3
4
5
6
7
8 0
75
180
360
600
900
1140
1260
1360
Show all of your calculations and processes. Describe your answer for 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? Describe your answer.
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).
Show all of your calculations and processes. Describe your answer for 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 qualifications that underlie your recommendation.
To have this questions done by our pool of professional writers, kindly send us an email.
Email to [email protected]
You can also browse for similar questions here
Categories
Uncategorized
Contribution Analysis
HCMG 730 discussion week 1

Production Cost Analysis and Estimation Applied Problems
Get a 20% Discount on this Paper
Calculate the price
Pages (550 words)
\$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
Sign up, place your order, and leave the rest to our professional paper writers in less than 2 minutes.
step 1
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
s
Get personalized services with Do My Homeworkk
One writer for all your papers
You can select one writer for all your papers. This option enhances the consistency in the quality of your assignments. Select your preferred writer from the list of writers who have handledf your previous assignments
Same paper from different writers
Are you ordering the same assignment for a friend? You can get the same paper from different writers. The goal is to produce 100% unique and original papers
Copy of sources used
Our homework writers will provide you with copies of sources used on your request. Just add the option when plaing your order
What our partners say about us
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Education
Looks good. Thank you!
Customer 452523, September 27th, 2022
Finance
Excellent. Thnk you
Customer 452443, October 22nd, 2021
Chemistry
Excellent services!
Customer 452443, November 11th, 2021
National Security Intelligence and Security Analysis
Timeliness
Customer 452457, November 3rd, 2021
Finance
Wow! I should never have doubted you guys. Thank you for the excellent grade
Customer 452443, August 27th, 2021
Other
Thank you!
Customer 452493, May 29th, 2022
Nursing
Good work, professional and beat the deadline. Thank you so very much
Customer 452445, August 24th, 2021
Chemical Engineering
Amazing. The writer delivered the draft earlier than expected, lol. I am pleased with the work; I hope my supervisor will like it too.
Customer 452443, September 1st, 2021
Philosophy
The paper was done to my satisfaction. Thnk you.
Customer 452443, November 18th, 2021
Economics
Thank you - much appreciated!
Customer 452493, April 2nd, 2022
English 101
Great work!
Customer 452443, December 2nd, 2021