Fizzy Fizz is a manufacturer of soft drinks. The firm has experienced economies of scale and improved efficiency in the long run. The UK Government has, however, increased indirect taxation that has led to an increase in the rate of inflation in the economy.
ITEM A
Read the following and answer the questions below and on
Page three
.
Fizzy Fizz is a manufacturer of soft drinks. The firm has experienced economies of scale and improved efficiency in the long run. The UK Government has, however, increased indirect taxation that has led to an increase in the rate of inflation in the economy.
The following table shows the firm’s short run costs.
Fizzy Fizz output per day
(barrels)
Total cost
(£)
Average cost
(£)
Marginal cost
(£)
0
100
–
–
1
200
200
100
2
280
140
80
3
330
A
50
4
360
90
30
5
450
90
90
6
600
100
150
7
770
110
B
(
a
)
Explain what is meant by the following terms:
(i)
“long run”;
(ii)
“rate of inflation”.
(i)
Using the table, identify the amount of fixed costs for Fizzy Fizz.
(ii)Give one example of a variable cost for Fizzy Fizz.
Using the table calculate:
(i)
the average cost at
A
;
(ii)
the marginal cost at
B
(i)
Using a demand and supply diagram, explain the effect on the market for soft drinks if the UK government imposes an indirect tax.
(ii)Other than an increase in indirect taxation, describe another cause of inflation.
(i)
Suggest and explain 2 economies of scale Fizzy Fizz might achieve as it expands its scale of production in the long run.
(ii)
Identify 2 benefits to Fizzy Fizz of improving its efficiency in the long run.
ORDER THIS ESSAY HERE NOW AND GET A DISCOUNT !!!
Our Service Charter
-
Excellent Quality / 100% Plagiarism-Free
We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers. -
Free Revisions
We keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed. -
Confidentiality / 100% No Disclosure
We make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service. -
Money Back Guarantee
If the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit. -
24/7 Customer Support
We have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.