The discussion requires a minimum of 300 words, 3 scholarly sources, including the textbook. Make sure that you use APA style with your references. Under no circumstances use any direct quotes. Any directly quoted or copied material will result in a zero for the assignment. Let’s be sure to write it in own work 100% and give appropriately when using someone’s else work.

Reference for textbook attached:

Thomas, C. R., & Maurice, S. C. (2010). Managerial economics: Foundations of business analysis and strategy (10th ed.). New York: McGraw-Hill/Irwin.

Engineers at a national research laboratory built a prototype automobile that could be driven 180 miles on a single gallon of unleaded gasoline. They estimated that in mass production the car would cost $60,000 per unit to build. The engineers argued that Congress should force U.S. automakers to build this energy-efficient car.

Is energy efficiency the same thing as economic efficiency? Explain.

Under what circumstances would the energy-efficient automobile described here be economically efficient?

If the goal of society is to get the most benefit from its limited resources, then why not ignore economic efficiency and build the energy-saving automobile?

1,500 word count and there is a total of 3 questions each (not including in-text citation and references as the word count), a minimum of 4 scholarly sources are required in APA format. For the 4 scholarly sources, one from the textbook that’s posted below and the other two from an outside source . Let’s be sure to write it in own work 100% and give appropriately when using someone’s else work. Under no circumstances use any direct quotes. Any directly quoted or copied material will result in a zero for the assignment.

Reference for textbook attached:

Thomas, C. R., & Maurice, S. C. (2010). Managerial economics: Foundations of business analysis and strategy (10th ed.). New York: McGraw-Hill/Irwin.

1. Water Works Plumbing Company is a small owner-managed plumbing services company that serves the greater Miami metropolitan area. Identify each of the following costs as either a vari­able, a fixed, or a quasi-fixed cost and give a detailed explanation.

a) Gasoline expense for the service van.

b) Cost of the owner’s time to run the plumbing business.

c) Cost of a complete set of tools needed to be a plumber.

d) Labor expense for an assistant plumber who is hired on an hourly basis and works with the owner-manager of the firm when the owner needs a helper.

e) Monthly lease payment for a drain-line auger, which contractually binds WW Plumbing to pay $75 per month for the next 12 months, regardless of how much or how little the company uses the leased piece of plumbing equipment. Subleasing is prohibited and there will be no refund if the machine is returned before the 12 month period expires.

f) Expense for plumbing service consumables: plumbers’ putty, Teflon tape, pipe lubricant, sandpaper, PVC glue, butane for torch, etc.

2. The production engineers at Impact Industries have derived the optimal combinations of labor and capital. These are the only two inputs used by Impact. The following chart shows the combinations of labor and capital for three levels of output.

Q is the output level. L* is the optimal amount of labor. K* is the optimal amount of capital. The price of labor is $90 per unit. The price of capital is $15 per unit.

Q	L*	K*
120	5	20
180	7	7
240	12	24

a) If the manager of Impact Industries decides to produce 120 units, what will the long-run total cost and long-run average cost of producing 120 units? Show all calculations.

b) If the manager of Impact Industries decides to produce 180 units, what will the long-run total cost and long-run average cost of producing 180 units? Show all calculations.

c) If the manager of Impact Industries decides to produce 240 units, what will the long-run total cost and long-run average cost of producing 240 units? Show all calculations.

d) Are there economies of scale over the output range 120 to 180? Explain.

e) Are there diseconomies of scale over the output range 180 to 240? Explain.

3. Compare and contrast economies of scale and economies of scope. Give an example of each from your own experience or research.

4. Explain the relation between average variable cost and marginal cost for both the short-run and long-run. Describe how the graphs of the cost functions look as part of your response.