Q-2-a- Illustrate and explain comprehensively the case of diminishing marginal returns with grphical presentation in the short-run. What important lessons can be drawn from this law? evaluate and comment. b-lllustrate and explain the relationship between the product and cost curves resulting from short-run case with graphical presentation. c-Under the above.context. explain the relationship between MC (Marjinal Cost) and Average Variable Cost (AVC) featured in short-run.

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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Whether fim A should continue
or stop production with a reference to resulting TFC.
g-In some cases, some firms carry on with production
even though they achieve a loss. What is the rational
behind that? evaluate and comment briefly.
Q-2-a- Illustrate and explain comprehensively the case of
diminishing marginal returns with grphical presentation in
the short-run. What important lessons can be drawn from
this law? evaluate and comment.
b-lllustrate and explain the relationship between the
product and cost curves resulting from short-run case with
graphical presentation.
c-Under the above context, explain the relationship
between MC (Marjinal Cost) and Average Variable Cost
(AVC) featured in short-run.
Q-3-a-lllustrate and explain the long-run equilibrium for the
perfectly competitive Frm andindustry.
b-Explain and comment on the results of long-run
equilibrium for the perfectly competitive firm drawn from
graphical 1llustration.
c-Indicate the ecuations that define equilibrium.
Transcribed Image Text:Whether fim A should continue or stop production with a reference to resulting TFC. g-In some cases, some firms carry on with production even though they achieve a loss. What is the rational behind that? evaluate and comment briefly. Q-2-a- Illustrate and explain comprehensively the case of diminishing marginal returns with grphical presentation in the short-run. What important lessons can be drawn from this law? evaluate and comment. b-lllustrate and explain the relationship between the product and cost curves resulting from short-run case with graphical presentation. c-Under the above context, explain the relationship between MC (Marjinal Cost) and Average Variable Cost (AVC) featured in short-run. Q-3-a-lllustrate and explain the long-run equilibrium for the perfectly competitive Frm andindustry. b-Explain and comment on the results of long-run equilibrium for the perfectly competitive firm drawn from graphical 1llustration. c-Indicate the ecuations that define equilibrium.
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