Economics Assignment

Running head: ECONOMICS ASSIGNMENT
Economics Assignment
Name of the Student
Name of the University
Author Note

1ECONOMICS ASSIGNMENT
Table of Contents
Task 3:........................................................................................................................................2
Task 4:........................................................................................................................................3
Task 5:........................................................................................................................................4
References:.................................................................................................................................6

2ECONOMICS ASSIGNMENT
Task 3:
1.
The license fee is a fixed cost, as it does not depend on the volume of production. As
a result, it is essential for every television network to pay this cost even during if these
networks incur loss (Shepherd 2015).
2.
The cost that Samsung is going to bear, based on its new contract, is the example of
variable cost. This is because, using of power boards depends on the number of television the
company produces.
3.
During long run, a firm produces its output at a minimum point of the average cost
curve. Both Airbus and Dreamliner offer similar services to passengers. However, they have
different cost structures. Airbus successfully uses fuels in an efficient way along with sound
reduction technology as well as advanced control system (Croce 2014). On the other side,
Dreamliner has advantages based on its fuel economy as well as quick times of flight
turnarounds. Thus, passengers can choose Airbus to travel long distance while for short
distance they can select Dreamliners. For long distance, Airbus can perform at the minimum
point of its long term average cost curve while in short distance, Dreamliner can operate at
the minimum point of its long run cost curve.