Q 1.The hiring of labour with fixed factor of production under short run after sometimes leads to increase in cost only. What's your opinion at what stage of production producer should make addition in labour, identify which concept in economics explains the whole situation, justify your answer why it happens with the help of table and diagrams.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Q 1.The hiring of labour with fixed factor of production under short run after sometimes leads to
increase in cost only. What's your opinion at what stage of production producer should make
addition in labour, identify which concept in economics explains the whole situation, justify your
answer why it happens with the help of table and diagrams.
Q2.Average cost curves (except for average fixed cost) tend to be U-shaped, decreasing and then
increasing. Marginal cost curves have the same shape, though this may be harder to see since
most of the marginal cost curve is increasing. Do you think that average and marginal cost
curves have the same general shape and why?
Transcribed Image Text:Q 1.The hiring of labour with fixed factor of production under short run after sometimes leads to increase in cost only. What's your opinion at what stage of production producer should make addition in labour, identify which concept in economics explains the whole situation, justify your answer why it happens with the help of table and diagrams. Q2.Average cost curves (except for average fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Do you think that average and marginal cost curves have the same general shape and why?
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