1.Water Works Plumbing Company is a small owner-managed plumbing services company that serves the greater Miami metropolitan area. Identify each of the following costs as either a variable, a fixed, or a quasi-fixed cost and give a detailed explanation.
a) Gasoline expense for the service van.
b) Cost of the owner’s time to run the plumbing business.
c) Cost of a complete set of tools needed to be a plumber.
d) Labor expense for an assistant plumber who is hired on an hourly basis and works with the owner-manager of the firm when the owner needs a helper.
e) Monthly lease payment for a drain-line auger, which contractually binds WW Plumbing to pay $75 per month for the next 12 months, regardless of how much or how little the company uses the leased piece of plumbing equipment. Subleasing is prohibited and there will be no refund if the machine is returned before the 12 month period expires.
f) Expense for plumbing service consumables: plumbers’ putty, Teflon tape, pipe lubricant, sandpaper, PVC glue, butane for torch, etc.
2. utilize the attachment
The production engineers at Impact Industries have derived the optimal combinations of labor and capital. These are the only two inputs used by Impact. The following chart shows the combinations of labor and capital for three levels of output.
Q is the output level. L* is the optimal amount of labor. K* is the optimal amount of capital. The price of labor is $90 per unit. The price of capital is $15 per unit.
a) If the manager of Impact Industries decides to produce 120 units, what will the long-run total cost and long-run average cost of producing 120 units? Show all calculations.
b) If the manager of Impact Industries decides to produce 180 units, what will the long-run total cost and long-run average cost of producing 180 units? Show all calculations.
c) If the manager of Impact Industries decides to produce 240 units, what will the long-run total cost and long-run average cost of producing 240 units? Show all calculations.
d) Are there economies of scale over the output range 120 to 180? Explain.
e) Are there diseconomies of scale over the output range 180 to 240? Explain.
3.Compare and contrast economies of scale and economies of scope. Give an example of each from your own experience or research.
4.Explain the relation between average variable cost and marginal cost for both the short-run and long-run. Describe how the graphs of the cost functions look as part of your response.
Place this order or similar order and Get High Quality Custom Made Content. “ ” for 20% discount
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more