# Analyzing learning curves, cost and production function

These problems deal with analyzing learning curves, cost and production function, and incremental costs.

See attached file for full problem description.

8.1 Cost and Production Functions. The total product curve shown here describes a production system in which X is the only variable input. Answer the following questions relating production to costs:

8.4 Incremental Cost. McFarlanci-Adler, Inc., produces innovative interior decorating software that it sells to design studios, home furnishing stores, and so on. The yearly volume of output is 15,000 units. Selling price and costs per unit are as follows:

8.9 Learning Curves. The St. Thomas Winery plans to open a new production facility in the Napa Valley of California. Based on information provided by the accounting department, the company estimates fixed costs of $250,000 per year and average variable costs of

AVC = $10 + $0.01Q

where AVC is average variable cost (in dollars) and Q is output measured in cases of output per year.

A. Estimate total cost and average total cost for the coming year at a projected volume of 4,000 cases.

https://brainmass.com/economics/employment/analyzing-learning-curves-cost-and-production-function-102426

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Please find my response in the attached file.

8.1 Cost and Production Functions. The total product curve shown here describes a production system in which X is the only variable input. Answer the following questions relating production to ...

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This solution is comprised of a detailed explanation to analyzing learning curves, cost and production function, and incremental costs.