Explain what it means in terms of opportunity cost when Economic profits are zero?

Q: The marginal-cost (MC) curve cuts through the average-total-cost (ATC) curve and the…

A: Answer to the question is as follows:

Q: What causes costs of production to vary with output in the short run? What generally causes costs…

A: The long run refers to a time frame where all factors of production and costs will be variable, and…

Q: Indicate whether the following statement is TRUE or FALSE and explain your answer: Firm's…

A: The given statement is ‘False’. The firm’s average cost curve in the short- run and in the long-run…

Q: Define the term Variable-cost behavior?

A: Variable cost is the cost that varies according to the level of output.

Q: The Principle of Diminishing Marginal Returns means what?         the more a good is consumed, the…

A: Diminishing Marginal Returns states as additional units of a variable input are added to a fixed…

Q: What do we assume to be the goal a typical firm in the production model pursues? A. Maximized…

A: A market consists of many firms and consumers.  Firms are supplier of goods and services.  Consumers…

Q: What are diminishing marginal returns? Using a diagram you have learned show and explain diminishing…

A: A production function shows the unique relationship between inputs and outputs. The change in output…

Q: hy does more inputs not necessarily translate into more output?

A: An input is something placed into a framework or interaction, while an output is produced or created…

Q: If the average-total-cost curve is falling, what is necessarily true of the marginal-cost curve? If…

A: Costs of production, which comprise expenses of many kinds, are incurred during the production of…

Q: Define the economic principle of opportunity cost.

A: When another item or activity is chosen, an opportunity cost is described as the amount of a…

Q: Give two example of fixed cost

A: Cost is the total expenditure incurred by a producer in producing a good or services. Cost has two…

Q: Sarah Sandoval is a coffee farmer trying to decide how many tons of coffee to produce. She can sell…

A: In a perfectly competitive market, there exists a large number of buyers and sellers of the good in…

Q: Draw a U-shaped average total cost curve and a marginal cost curve on the same graph.

A: The average total cost describes the overall cost required for the production process which gets…

Q: An economist would draw no such conclusions. The essential economic question is how resources are…

A: To summarize above pictures, it is important to know some definitions like : IMPLICIT COSTS are the…

Q: Microeconomics divides costs in to “short-run costs” and “long-run costs”. Can “long-run” differ…

A: The short run is defined as the time frame during which wages and prices of other production inputs…