Suppose Argyle Sachs Has to Choose Between Building a Smaller

question 149

Essay

Suppose Argyle Sachs has to choose between building a smaller sweater factory and a larger sweater factory. In the following graph, the relationship between costs and output for the smaller factory is represented by the curve ATC1, and the relationship between costs and output for the larger factory is represented by the curve ATC2. a. If Argyle expects to produce 3,600 sweaters per month, should he build a smaller factory or a larger factory? Briefly explain?
b. If Argyle expects to produce 5,000 sweaters per month, should he build a smaller factory or a larger factory? Briefly explain.
c. If the average cost of producing sweaters is lower in the larger factory when Argyle produces 6,500 sweaters per week, why isn't it also lower when Argyle produces 4,000 sweaters per week?

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Definitions:

Reproductive Isolating Barriers

Biological features of organisms that prevent species from interbreeding and producing fertile offspring.

Prezygotic

Pertaining to mechanisms that prevent fertilization or successful reproduction between different species before the formation of a zygote.

Postzygotic

Pertaining to the biological and evolutionary processes that occur after the formation of a zygote, particularly those that influence reproductive success and viability.

Pre-Mating

Pertains to processes or behaviors that occur before the act of reproduction, often involving mate selection or courtship in animals.