Questions: 1. Isoquants can be convex, linear, or L-shaped. What does each of these shapes tell you about the nature of the production function? What does each of these shapes tell you about MRTS? 2. What does it mean to say that a person is risk averse? Why are some people likely to be risk averse while the others are risk lovers? 3. Assume that the marginal cost of production is greater than the average variable cost. Can you determine whether the average variable cost is increasing or decreasing? Explain by graph.

Q: Explain the implicit costs associated with pursuing an MBA.  Which do you think are greater for a…

A: Implicit costs, also known as imputed costs, represent the opportunity cost of using resources that…

Q: You are planning to start a business. When calculating the costs. You have considered the costs of…

A: Opportunity cost refers to the best alternative foregone when choosing the other alternative.

Q: Question # 01 a. Think of setting up some kind of easy business like establishing a beauty salon, a…

A: Answer - "Thank you for submitting the question.But, we are authorized to solve one question at…

Q: An entrepreneur invests $10,000 of her personal savings in her new business venture. Furthermore,…

A: Opportunity cost: - opportunity cost is a forgone benefit that we could have earned by applying all…

Q: If marginal physical product is continually declining, what does marginal cost look like?

A: The marginal physical product is the additional output which can be produced by the firm by…

Q: where q is the number of units produced and A is the time in months that LeAnnʹs manager has spent…

A: A firm incurs various types of costs during the production process. The various types of costs…

Q: charlie is running a coffe shop and are currently selling 200 coffees. it cost them 2,0000 to hire a…

A: Fixed cost is the part of total cost that does not depend on output produced. It remains fixed even…

Q: how is the slope of the total cost and marginal cost related?

A:

Q: What is the difference between implicit and explicit costs? Why do economists include both implicit…

A: Each firm in any industry is driven by profit motive. The goal of a firm is to maximize its sales…

Q: Distinguish between explicit and implicit costs, giving examples of each. Why does the economist…

A: Externalities: It occurs in the economy when the production of goods and services and the…

Q: average total cost is increasing as output increase, then marginal cost must be average total cost.…

A: Marginal cost is the additional cost incurred in order to produce an additional unit of output.

Q: Distinguish between explicit and implicit costs, giving examples of each. What are some explicit and…

A: Implicit Cost: Implicit cost is due to the factors which are entrepreneur himself owns and employs…

Q: What are two examples of variable costs?

A: Variable costs depends on the level of output being produced by the firm.

Q: 1)Suppose that labor is the only variable input to the production process. If the marginal cost of…

A: The marginal product of labor refers to the change in the total product with an addition of an…

Q: Economic Mathematics Consider the problem of inventory costs and production to satisfy a demand x…

A: Given information Delivery period T = 8Starting inventory x (0) = 0Ending inventory x (8) =…

Q: "Money cost and the real cost don't coincide"? Comment on this statement

A: The term "total cost" typically refers to the overall cost associated with a product, or service. It…

Q: What cost would an accounting statement reveal should current decisions be based on accounting cost.

A: Accounting statement should reveal the cost of production,cost of capital.

Q: Let's play around with the concepts of total cost versus marginal cost Suppose a grocery store…

A: Marginal cost is the cost of hiring the additional worker per week.

Q: in economist estimated the learning curve for the production of Tesla vehicles t C-433,094°N -0.135…

A: A learning curve depicts the time it takes for a  firm to acquire a new skill.

Q: If accounting profit is $400,000 greater than economic profit, what do implicit cost equal?

A: We know that: Accounting profit = Total revenue- Total explicit cost Economic profit = Total revenue…

Q: Currency Checking Account Balances Savings Account Balances Small-Denomination Time Deposits…

A: Money is the common medium used for exchanging goods and services in the market.

Q: When thinking about cost analysis in Microeconomics, what are the real-world problems that occur…

A: Economies of scale are cost savings that can arise when a business expands the production scale and…

Q: write down 2 examples of implicit cost?

A: implicit cost is when company use thier resources ot helps in calculating economic profit

Q: if economic profit equals accounting profit, what do implicit cost equal?

A: (Q) If economic profit equals accounting profit, what do implicit cost equal? There are two types of…

Q: A student once said she 'didn't believe in sunk costs. She meant that the idea that 'some costs are…

A: Sunk cost refers to the costs that has been paid already and cannot be recovered. That means it is…

Q: Give an quantitative example of marginal and average cost.

A: Average cost is the equivalent of total fixed cost (TFC) and total variable costs (TVC) divided by…

Q: The cost curve for producing widgets passes through the following points and is piecewise linear in…

A: Incremental cost of production is the increase in total cost due to increase in the production…

Factors of Production

Factors of production – in simple words means the factors that are used for producing any product or service. This includes the resources which are necessary for the manufacturing of products. Factors of production are also known as the building blocks of the economy.