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Ike’s Bikes is a major manufacturer of bicycles. Currently, the company produces bikes in 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

05 / 03 / 2018 Assignment

This paper circulates around the core theme of Ike’s Bikes is a major manufacturer of bicycles. Currently, the company produces bikes in 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 together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 45. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.

Ike’s Bikes is a major manufacturer of bicycles. Currently, the company produces bikes in 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 each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Number of Factories Q=100 Q=200 Q=300 Q=400 Q=500 1 320 240 240 360 560 2 480 320 240 320 480 3 560 360 240 240 320 Suppose Ike’s Bike is currently producing 500 bikes per month in ist (only) factory. Its short-run average total cost is _____per bike? Suppose Ike’s Bikes is expecting to produce 500 bikes per month for several years. In this case, in the long-run, it would choose to produce bikes using _______?


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