1. In order to maximize profit a producer will always produce at a point where the Marginal Benefit is greater than the Marginal Cost (MB>MC). True or False? Why? 2. The Opportunity Cost (OC) of production shall be also be included in optimal production decision even if these are not ‘out of pocket’ costs of production. True or False? Why? 3. When OC are included in production decisions it is always the case that optimal level of production will be lower compared with a situation where OC are not included. True or False? Why?

Q: Part I. The Opportunity Cost (OC) of production shall be also be included in optimal production…

A: The opportunity cost is the gain forgone for the other alternative or it is the next best available…

Q: Refer to the table below. Behaving as a "rational optimizer," how many units of this activity should…

A: In economics, rational optimization involves making decisions that maximize the net benefit or…

Q: Pick one of your items. You have been contacted by a customer in Alaska who wants to purchase…

A: Disclaimer :- since you asked multipart questions we will solve only 3 first subparts as per…

Q: Cite three examples of recent decisions that you made in which you, at least implicitly, weighed…

A: Marginal cost and marginal benefit are two important factors to consider, which making an economic…

Q: Aphria Corporation, a cannabis producer, is producing 35 units of output. Aphria Corporation is…

A: Given, Aphria Corporation   • Output produced, Y = 35 units; which is sold in a perfectly…

Q: re is a road between the suburbs and downtown. The road becomes congested at rush hour. As long as…

A: There is a road between the suburbs and downtown.  As long as fewer than 99 people use the road…

Q: Complete the following table and answer the accompanying questions.   Control Variable Q Total…

A: The marginal benefit is the change in benefit by increasing control variable Q by one unit.…

Q: The total benefit of a 3.0GHZ computer is:

A: So we need to find total benefit of a 3.0GHz computer.

Q: generally make rational decisions that maximize desirable outcomes in the absence of emotions…

A: As per rational choice theory people make rational decisions after weighing the pros and cons of an…

Q: There is no such things as free lunch" means that a) Money costs are always present when one…

A: Choices are present and a real cost incurred when a choice is made The use of resources to produce a…

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.