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

Q: How does a cost behave in response to a change in activity? Give an example?

A: Cost also changes with the change in the activity. There are two types of costs- fixed costs and…

Q: Which of the following statements do you think reflect sound economic thinking? Explain your answer.…

A: Economic thinking is a way of analyzing economic phenomena. It is a process of examining the choices…

Q: When economic profits are zero in equilibrium, the firm's revenue must be sufficient to cover all…

A: Costs are the expenses that firms incur in the production of goods and services. A firm can incur…

Q: At what level of production does the marginal cost have the least value? What is the marginal cost…

A: The marginal cost curve is the U-shaped curve.

Q: What "Economic profits are positive or negative " mean in terms of opportunity cost?

A: Opportunity cost defines the value of the next best choice that is given up when making a choice. It…

Q: The following data refer to Questions 23 and 24 only. Number of workers Total Product Marginal…

A: Total product is the total output produced by a firm. Marginal product is the extra output produced…

Q: Your aunt is thinking about opening a hardware store.She estimates that it would cost $500,000 per…

A: opportunity cost is what is sacrificed when a person select one option over another one. it is a…

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

A: Total Cost is equal to the sum of both fixed and variable costs. Fixed Cost remains fixed for all…

Q: What explains the shape of the average and marginal cost curves?  Is it linked to any production…

A: Marginal cost is the measurement of change in total cost with the increment of quantity produced by…

Q: Explain the counter-intuitive proof of diminishing marginal productivity: if the law of diminishing…

A: Total product refers to the output amount that can be produced by a given amount of variable factor,…

Q: Why is economic cost known as opportunity cost? What are included in economic costs?

A: Opportunity cost refers to the cost of a foregone opportunity. The cost involved when an opportunity…

Q: Silvio's Pizza is a small pizzeria. The firm's production function is shown in the table above.…

A: The marginal cost is the change in total cost divided by the change in the total output. Therefore,…

Q: Farmer McDonald gives banjo lessons for $20 an hour. One day, he spends 10 hours planting $100 worth…

A: Accounting profit is the difference between total revenues and explicit costs where explicit costs…

Q: Explain the law of increasing opportunity cost in this graph

A: The opportunity cost is the value of the next best alternative that is foregone while making the…

Q: If the marginal cost equals average cost, we are at the _____ point of the ____ curve.

A: Marginal cost is that cost which is incurred because of producing one additional unit of the output,…

Q: What is Cost Competitive Advantage?

A: Competitive advantage is a set of different features of a company and the products that it produces…

Q: What is a marginal cost? (in detail)

A: The Marginal cost is an additional cost of producing an additional unit of an output. In other…

Q: What economic principle explains why average variable costs and marginal costs initialy decrease as…

A: A U-shaped curve represents the average variable cost function. Initially, as output increases, the…

Q: Discuss about the concept of marginal cost using your own example?

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: Explain why the marginal cost of production must increased if the marginal product of the marginal…

A: The marginal cost of production refers to the change in total cost due to produce an extra unit of…

Q: Explain why marginal costs increase above some level of production in the short run.

A: The marginal cost is the additional cost incurred from producing one additional unit of goods and…

Q: If the marginal cost is increasing, do you know whether average variable cost is increasing or…

A: Marginal cost is U shaped and average variable cost is also U shaped.

Q: Explain the idea behind diminishing marginal returns and give a real-life example.

A: Diminishing Marginal Returns happen while expanding one unit of creation, while holding different…