a. On Bonnies LRAC curve, what is the average cost of producing 18 rides and 15 rides

Question:

a. On Bonnie’s LRAC curve, what is the average cost of producing 18 rides and 15 rides a day?
b. Explain how Bonnie’s uses its long-run average cost curve to decide how many balloons to rent.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 978-0133019940

11th edition

Authors: Michael Parkin

See More Books

Question Posted: Dec 15, 2015 07:15 AM

See More Questions

A genealogical firm called Roots produces its output using only one input. Its production function is f(x) = x. (a) Does the firm have increasing, constant, or decreasing returns to scale? (b) How...
Suppose a firm has the following production function: Q = 2KL. The marginal product of capital for this production function is 2L, and the marginal product of labor is 2K. If capital rents for $100...
1. Monopolistic competition refers to a market in which old boys act naturally as they transport tight slacks in the back of Dodge Ram pickup trucks. ___________ (True/False) 2. There are...
Compare sand, die, investment, lost foam, and continuous casting techniques.
The length of time between arrivals at a hospital clinic has an approximately exponential probability distribution. Suppose the mean time between arrivals for patients at a clinic is 4 minutes. a....
Using the earnings data given in Exercise 10.3, determine the amount of Medicare tax to be withheld from each employees gross pay for December. Assume a 1.45 percent Medicare tax rate and that all...
What are the common cost-based hotel pricing methods?
1. Fill in the blanks in the following table. Note that the ordering of the first column has been scrambled. 2. When _____ (supply/demand) changes, the equilibrium price and the equilibrium quantity...
how do you do this 6. A business produces three joint products in a joint production process. Joint production costs for the month totaled $420,000. All products must be processed beyond the split...
Which of the following best describes the child tax credit? a. A $2,000 credit available to taxpayers with AGI under certain limits and children under age 17. b. A $500 credit for a dependent that...
After you have studied Reading Between the Lines on pp. 264-265, answer the following questions. a. Explain the distinction between the short run and the long run and identify when McDonalds would...
Graph the ATC curves for Plant 1 and Plant 2. Explain why these ATC curves differ. The table shows the production function of Bonnie's Balloon Rides. Bonnie's pays $500 a day for each balloon it...
Explain the value to managers of understanding cultural differences.
4. Consider the RC circuit shown below: R C C2 The capacitors are connected in parallel. Use C = 120 F, C = 30F, R = 5002, and = 40V. The capacitors are initially uncharged and at t=0 the switch is...
The DuPont equation shows the relationships among asset management, debt management, and profitability of improving the firm's performance. Its equation is: ratios. Management can use the DuPont...
38. A pendulum bob of mass 0.200 kg is pulled to one side such that it has a height of 0.50 m relative to its rest position (that is, its lowest point). It is then released so that it swings back and...
Let A in K ^ ( n \ times n ) be an ( n \ times n ) - matrix. Show that there ist a basis B of K ^ n that consists of eigenvectors of A .
Using the "you" view is an effective way for writers to avoid taking on blame in business messages. O True False
Which statement is the most accurate? a) Employment discrimination has been almost entirely wiped out over the last few decades. b) The glass ceiling no longer exists. c) Nearly everyone agrees that...
Charles owns an office building and land that are used in his trade or business. The office building and land were acquired in 1978 for $800,000 and $100,000, respectively. During the current year,...
Changing Translation Practices: FASB. The Financial Accounting Standards Board promulgates standard practices for the reporting of financial results by companies in the United States. It also,...
U.S. drivers are ranked as the least sensitive to changes in the price of gasoline. For example, if the price rose from $3 to $4 per gallon and stayed there for a year U.S. purchases of gasoline...
Sales of Spam are rising as consumers realize that Spam and other lower-cost foods can be substituted for costlier cuts of meat as a way of controlling their already stretched food budgets. a. Is...
Sales of Spam are rising as consumers realize that Spam and other lower-cost foods can be substituted for costlier cuts of meat as a way of controlling their already stretched food budgets. a. Is...
Eye Deal Optometry leased vision - testing equipment from Insight Machines on January 1 , 2 0 2 4 . Insight Machines manufactured the equipment at a cost of $ 2 0 0 , 0 0 0 and lists a cash selling...
help! ee all photos + Add to o e D C N X Edit & Create Share Table of Contents No sales to an individual customer accounted for more than 10% of revenue during any of the last three fiscal years. Net...
Business law A person may have the liability of a partner even though no partnership exists True False

a. On Bonnies LRAC curve, what is the average cost of producing 18 rides and 15 rides

Question:

Step by Step Answer:

a The longrun average total cost curve is illustrated in Figure 1116 ...View the full answer

Microeconomics

Students also viewed these Economics questions