When long-run AC is falling, it is tangent to short-run AC curve: of the

Q: Define marginal physical product of labor (MPP) and marginal cost of product (MC). How are these two…

A: The marginal physical product of labour can be defined as the increase in firms' revenue due to the…

Q: One isocost line can intercept an isoquant. Select one: O True O False

A: An isoquant refers to the locus of points showing all the technically efficient ways of combining…

Q: What is technical rate of substitution? Show it graphically

A: Substitution effect: It refers to the effect under which there is reduction in the sales of goods…

Q: A farmer uses a certain technology that produces electricity. His production function is given as: q…

A: Production function shows the relationship between the input used and the output produced.  The…

Q: 3. Use indifference curve analysis to show how a pay-as-you-go retirement system can decrease a…

A: Indifference curve is a graphical representation that shows the various possible combinations of two…

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: Suppose the relationship between your study time and your grade on a History midterm is given by the…

A: Marginal analysis is an assessment of the additional advantages of an operation relative to the…

Q: Explain the relationship between AC and MC.

A: The average total cost is the ratio of the total cost of production and the quantity of output…

Q: What is meant by an expansion path? Illustrate expansion paths for a normal input and an inferior…

A: The expansion path may be defined as the locus of the points of tangency between the Isoquant curve…

Q: Both short-run and long-run average cost curves are likely to have a negative slope up to a given…

A: Meaning of Short-Run Cost Curves: The term short-run cost is the period under which some variable…

Q: 3. What is true about a function that has constant returns to scale? A. That increasing just labor…

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Q: When do we say that a firm is operating with least cost combination of inputs?

A: The different combinations of the resources used in the production process depend on the economic…

Q: Demonstrate the law of diminishing yields on a graph by drawing the relationships on TP, AP and MP…

A: The Marginal Product of an input indicates that the quantity of the variable factor changes in…

Q: Egidio Binaccio designed an ancestry app that allows people to connect with long lost Italian…

A: Costs refer to the expenses that are incurred in the process of production of goods or services.…

Q: if the ATC curve is rising, does that mean the MC curve must lie above it? Explain.

A: Marginal Cost: The sum of the total variable cost is the marginal cost because the fixed cost…

Q: What equation shows the relationship of MC to AVC when AVC is rising?

A: Marginal Cost It refers to the change in the total cost due to one unit change in output. Variable…

Q: In the production process, both the average product and marginal product of the variable input rise…

A: In the production process, both the average product and marginal product of the variable input rise…

Q: Create a table describing input combinations of labor and wheat flour in producing a certain cake.…

A:

Q: The AVC and the AC curve can intersects each other at any point True/False

A: # The average per unit variable cost isris to be as Average variable cost and the average per unit…

Q: 8. Engineers sometimes rely on the "0.6 rule," which states that the increase in cost is given by…

A: "0.6" Rule states that increase in capacities of equipment  leads to less than one to one increase…

Q: Underground Sandwiches, a sandwich shop, has the following marginal product curve (labeled MP) for…

A: Total product is calculated in the below table. When labor increase from two to three workers, the…

Q: The amount of fish  caught per week an a trawler is a function of the crew size assigned  to operate…

A: Average Product (AP):Average product refers to the average amount of output produced per unit of…

Q: Complete the table directly below by calculating MP and AP. Inputs of L  TP MP AP 0  0 1 15 2 34 3…

A: MP is nothing but the additional product which arises when one unit of extra labor is employed. MP =…

Q: Isoquant curves Gym requires exactly 3 bottles of water per athlete to maximise performance…

A: Introduction Isoquant curve : Isoquant curve represents all the inputs combinations of two…

Q: Explain Isoquant curve.  Explain Isocost line.  The difference between the two and what should be…

A: Answer: Isoquant curve: it is a curve that shows different combinations of capital and labor that…

Q: What is the difference between the short run and long run for a firm? How does this relate to fixed…

A: Short run and long in economics is related to production of firms in which various fixed and various…

Q: Determine the multifactor productivity for the combined input of the labor and the machine time…

A: Multifactor productivity is the ratio of output and combined costs of inputs and it determines the…

Q: Let Srepresent the amount of steel produced (in tons). Steel production is related to the amount of…

A: We have  The production function for steel: S=20L0.30C0.70 Where L is the number of labor units used…

Q: 1. ATM Rules > For each Total equation below, apply the ATM RULES to find the associated Average and…

A: Given, T=12+3Q where T is the Total cost function The average cost is defined as the cost of…

Q: This table refers to five possible buyers' willingness to pay for a case of Vanilla Coke. Buyer…

A: Consumer surplus is the area below demand curve and above price.  Consumer surplus is given by the…

Q: What is the difference between a fixed input and a variable input?

A: Inputs are the resources that are used in the production of output. There are generally four inputs…