Question

Suppose you are the production manager for Tesla's battery manufacturing plant, and you find that an...

Suppose you are the production manager for Tesla's battery manufacturing plant, and you find that an increase in output this quarter tends to reduce production costs in the next quarter. Based on this information, your cost structure exhibits the characteristics of

A.

Diseconomies of scope
B.

Economies of scope
C.

Diseconomies of scale
D.

Learning curves
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

It has been stated that the production manager has found out that increase in output this quarter tends to reduce the production costs in the next quarter.

This indicates that there exists a relationship between output in one time period and cost saving in subsequent time period.

Such relationship is indicated by the learning curve.

Learning curve indicates that as more production is undertaken, experience gained in production process translates into cost saving subsequently.

Thus,

The cost structure exhibits the characteristics of learning curves.

Hence, the correct answer is the option (D).

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
As an economic consultant, you visit a production plant (a factory). During your visit, you explain...
As an economic consultant, you visit a production plant (a factory). During your visit, you explain the concept of returns to scale to the manager of the factory. The manager responds as follows: “If we would double all our input then our production would also be doubled. But our revenues would not be doubled. That is because, doubling output would require decreasing our price to sell all these extra products. So our technology has decreasing returns to scale.” Why is...
You are a newly hired manager of a small manufacturing plant in a rural area where...
You are a newly hired manager of a small manufacturing plant in a rural area where highly skilled labor is in short supply, despite the fact that your plant currently pays its workers $15/hour. In order to alleviate the problem of skilled labor shortage at your plant, you are considering instituting an overtime plan, where workers earn $15/hour for the first 8-hour work-shift per day and $22.50 for each hour worked beyond the regular 8-hour work-shift. Alternatively, you are considering...
You are up for promotion to Plant Manager. All candidates for the position have been given...
You are up for promotion to Plant Manager. All candidates for the position have been given information related to the production of the company’s premier product, Extreme Slime.   Data: A component used in the production of Extreme Slime is being evaluated to see if the part should be made in house, or purchased from an outside supplier. The outside supplier has said the purchase price would be $68 and $6 for shipping each part. We will need 10,000 of these...
A manufacturing plant has a potential production capacity of 1,000 units per month (capacity can be...
A manufacturing plant has a potential production capacity of 1,000 units per month (capacity can be increased by 10% if subcontractors are employed). The plant is normally operated at about 80% of capacity. Operating the plant above this level significantly increases variable costs per unit because of the need to pay the skilled workers higher overtime wage rates. For output levels up to 80% of capacity, variable cost per unit is $100. Above 80% and up to 90%, variable costs...
You are the manager of GetMoney Inc. and you produce cardboard boxes. Suppose that you hired...
You are the manager of GetMoney Inc. and you produce cardboard boxes. Suppose that you hired a consultant for your company to estimate the demand for your cardboard boxes. You collect data on the price and quantity of boxes sold and send it to your consultant, who then estimates the inverse demand equation as P = 14 – (1.5)*Q. Please also assume that you have a fixed cost of $2 and that the variable cost as estimated by your consultant...
Question 1 When a production facility is in production and running well, it adds a new...
Question 1 When a production facility is in production and running well, it adds a new worker. You would expect this worker to produce more than prior workers. less than prior workers. the same as prior workers. Question 2 "Fill in the blank" question: select the correct answer. When production is just beginning, more efficient use of each input can be achieved by -Select- adding new variable inputs adding new fixed inputs reducing fixed inputs reducing variable inputs Question 3...
Marginal Analysis You are the manager of GetMoney Inc. and you produce cardboard boxes. Suppose that...
Marginal Analysis You are the manager of GetMoney Inc. and you produce cardboard boxes. Suppose that you hired a consultant for your company to estimate the demand for your cardboard boxes. You collect data on the price and quantity of boxes sold and send it to your consultant, who then estimates the inverse demand equation as P = 14 – (1.5)*Q. Please also assume that you have a fixed cost of $2 and that the variable cost as estimated by...
Roles What do they know Sales Manager You want to sell 10,000 units in April, 15,000...
Roles What do they know Sales Manager You want to sell 10,000 units in April, 15,000 in May, 8,000 units in June at $20 each. Business Development You know that our competitor is struggling with manufacturing and supply is low, and your POV is that demand will increase by 10% in April and May Manufacturing Supervisor You have seen that raw material supply shipments are being delayed - and you want to keep 15% of next months production needs on...
Project Integration Management Questions Only A team member notifies you, after the fact, that she has...
Project Integration Management Questions Only A team member notifies you, after the fact, that she has added extra functionality to the project. There was no impact on the cost or schedule. What should be done as a result of this change? Make sure marketing is aware of the change. Implement change control processes to track the change. Inform the customer. Understand what functionality was added. You are having difficulty getting a project underway. You have not been able to get...
Background You are a manager in the audit division at Miller Yates Howarth (MYH), an accounting...
Background You are a manager in the audit division at Miller Yates Howarth (MYH), an accounting firm with offices throughout the major regional centres of NSW and Queensland. Although a medium sized firm by national standards, MYH is the second largest regional accounting firm in Australia. Most of MYH’s audit clients are in the agriculture, mining, manufacturing and property industries. All of those industries are currently under pressure, either from a downturn in commodity prices or fierce competition from overseas...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT