Explain clearly
An industrial company designs the production process of product X so that the desired production volume (10,000 units/month) would be the optimal one too, in terms of economies of scale. The following paired data were received from the competent department of the company: Monthly production volume (in product units): 8,000; 9,000; 10,000; 11,000; 12,000 Total cost: 5,500,000; 6,000,000; 7.000,000; 8,000,000; 9,000,000 Has the business achieved the desired result? Yes, because the company is at the lowest point of the U-shaped curve when producing 10,000 units No, because average cost is equal to 700 euros/unit while there is at least one more production level where the B average cost is lower No, because average cost is lower when producing 11,000 units Yes, becouse marginal cost exceeds average cost when producing 10,000 unitsThe market demand function for MNM vaccines, the cost of which is not reimbursed by any insurance organization (ie it is fully paid by consumers), is QD = 500,000 - 400p2 - 1,600P. The market supply of the same vaccine is constant at 300,000 units per year (Qs= 300,000). The vaccine is available on the market at E20. What kind of state intervention could be implemented in order to balance the market? A The Government should buy 8,000 vaccines and distribute them free of charge to the citizens B Reduce taxation for pharmaceutical companies so they can produce 5,000 more vaccines each year No government intervention is required as in the mid term the market will bimself-adjusted at the equilibrium point D To set a maximum price for this vaccine at 25 eurosA telecommunication provider calculated that the monthly demand function for its basic package is Q = 3,500 - 110P. The firm is considering to increase the selling price of this package from 10 to 15 euros. Would you advise it to do something like that? A Yes, because of inelastic demand (e = -0.46) B No, because a price raise by 50% will reduce the quantity demanded by 22.9% No, because of inelastic demand (e = -0.46) Yes, because revenue will be higher by 2,750 euros