These Economics W.I.R.E.D. activities recommend web links that relate to key concepts of each chapter of the textbook. For each link, there are instructions to guide you to specific information, followed by several discussion questions or exercises.
Key Concepts: Case
Study: Finding Average Cost at an Individual Firm, Average Cost Curves, Costs
and Production: The Short Run, Costs and Production: The Long Run, Economies
of Scale in Production
Read the design steps to review the basic production process of a new electronic
circuit board. Click on "see Economies of Scale" under the "Production" section.
Study the "Economies of scale in Electronics Production."
- Why is the cost of final production
heavily influenced by the number of units manufactured?
- Explain why the PC (personal
computer) industry typifies the economies of scale rule.
- Review the production costs and revenue associated with producing Ginseng
in Ontario, Canada at the Ontario Ministry of Agriculture, Food, and Rural
Which cost categories (e.g. preparation, annual cash costs, harvest, etc.)
are variable in nature?