Q: How would the long-run equilibrium output change if new natural resource (energy) was discovered?…
A: Natural resources are the raw materials that are used by the business organizations in order to…
Q: True/False? Discuss. If there weren’t diminishing marginal returns all the rice in the world could…
A: The law/fundamentals of Diminishing-Marginal-Returns (DMU) states that while working with fixed…
Q: A factory supervisor faces the following table: Quantity of laptops Labour cost ($) Rental of…
A: The term "average cost" refers to the production cost per unit, which is determined by dividing the…
Q: In the graph below, you can see the iso-cost curve and the iso-quant curve for the firm to produce q…
A: the iso-cost curve is his budget line. An iso-cost line is a graph that depicts numerous input…
Q: Complete the following table: Assuming the price of capital (k) is $4 and the price of labor (L) is…
A: Price of capital(K)= $4 Price of labor(L)= $6 Total cost(TC)= Price of capital * K + Price of labor…
Q: Answer with either True or False and then provide at most three sentences, which includes an…
A:
Q: Which of the following is CORRECT? Select one: If a firm is technologically efficient, it is always…
A: Technological Efficiency: A firm is said to be technically efficient when it started producing…
Q: Briefly discuss physical capital investment and long-run average cost in relation to a perfectly…
A: Physical capital and labor can usually substitute one another. The physical capital for cleaning up…
Q: If a firm has TFC = $500, and TC = $800 when output is 20 units, how much is the AVC per unit of…
A: While producing goods and services sellers have to incur costs by paying various factor payments to…
Q: Suppose that firms in the zipper industry have the production technology: F(K,L)=4K^(3/4) * L^(1/4)…
A: Answer: Given: Production function: FK,L=4K34×L14 Cost/price of labor = 27 Cost/price of capital =??…
Q: Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Loblaws Supermarket is…
A: Value added by loblaws supermarket is 1.50 $ (4 $ - 2.50 $) Delux popcorn added the greatest value…
Q: 1) The joint cost (in thousands of euros) for two products X and Y can be given by the following…
A: We will use incremental cost concepts to answer this question
Q: If a firm wanted to know how much it would save by producing one less unit of output, it would look…
A: TC (Total) is the cost which is incurred by a firm in producing some specific level of output. It is…
Q: Suppose a firm has only three possible plant-size options, represented by the ATC curves shown in…
A: a. 50 units of output - Plant Size 1 b. 130 units of output - Plant Size 2 c. 160 units of output -…
Q: The information on three different technologies named as q, v and x is listed in the table below.…
A: With the use of technology, a firm can minimize its cost for production to get more profit.
Q: What is meant by technological advance, as broadly defined? How does technological advance enter…
A: Technological advance in means the use of new technology or advance or upgraded technology such that…
Q: An industry consists of 50 firms with equal sales. What is the HHI? a. 50 b. 200 c. 400 d. 800 e.…
A: The Herfindahl-Hirschman Index is an index that is used to measure the size of the firms in relation…
Q: MC ATC AVC AFC 40 70 80 90 Quantity Costs
A: Diminishing returns begin where MC curve starts rising or MP curve starts to fall. Most productive…
Q: What must an entrepreneur do to earn a profit? How do the actions of firms earning profits influence…
A:
Q: 1. For each of the following production functions, determine whether there areincreasing, constant…
A: A production function shows the maximum level of output that can be produced with the help of…
Q: Draw the MC and the ATC curves and show graphically: (a) The long-run optimal production and price…
A: (a) In the long run optimal production and price level for a firm will be at a equilibrium point…
Q: Define Industrial economies. of industrial structures?
A: Industrial structure refers to the structure specially designed to fulfill a particular function…
Q: How does rising organic composition of capital threaten the rate of profit?
A: Historically, there have been a lot of economic theories stating the requirements for the…
Q: what is the importance of long run and short run production in production theory?
A: A production function is a functional relationship between the inputs which are used in the process…
Q: Where average costs of production are lowest when all output is produced by a single firm
A: Average cost curve: It is a cost bend which is commonly U-shaped. Average variable cost (AVC) is…
Q: a- The Western U.S. saw record heat waves in August, 2021. Electricity is heavily used in air…
A: Marginal cost refers to the additional cost of producing an additional unit of the good.…
Q: Alec and Ellie are the only detectives in the town of Broadchurch. They work together. Assume…
A: In this question we have to find out the additional paperwork files to be given up with the help of…
Q: If a paper mill shuts down its operations for three months so that it produces nothing, its will be…
A: Variable cost Variable expenses are volume-related and alter as production levels change. Raw…
Q: Discuss in detail the short and long run laws of production.
A: Short run law of production says that when more and more units of variable inputs are added to fixed…
Q: a) Explain why Binful, Bernard, Freeman, Emelia and Anortiah as managers of Ohenewaa & Ama Group of…
A: a. An economically efficient method of production is the method that produces a given level of…
Q: Answer the question based on the following information: Suppose 20 units of product A can be…
A: ANSWER Total Revenue=Price*output=1.00*20=20
Q: Which stage of short run production is efficient? Why?
A: In microeconomics, we have two time periods namely short run and long run. Short run is the time…
Q: Alec and Ellie are the only detectives in the town of Broadchurch. They work together. Assume…
A: Alec and Ellie are the only detectives in the town of Broadchurch. They work together. Assume…
Q: Do you think that the taxicab industry in large cities would be subject to significant economies of…
A: The economies of scale arise when a firm produces a large quantity because as the production…
Q: What is the difference between short-run and long-run in production theory? *Explain thoroughly*
A: Production is defined as the process in which factors of production or inputs are put to use in…
Q: Please don't copy ans Economics You are the owner of a motorbike company that…
A: Production function of old firm : f(o) = mL0.5 Of new firm : f(n) = nL0.5 Cost functions are the…
Q: Is it true that if a firm’s technology exhibits the decreasing return to scale, then average…
A: Introduction The scale of production in two factor production function means a given amount of labor…
Q: Suppose that the Travnikar Corporation manufactures widgets. Analysts that work for the company have…
A: A firm maximizes profit by producing at level of output where MR = MC. When MR > MC, firm should…
Q: Use the following data to answer the question. The letters A, B, and C designate three successively…
A: Economies of Scale and Minimum Efficient Scale Unit costs can be as low as possible while still…
Q: Based on the table below answer the following questions ( a) are diminishing marginal returns of…
A: Marginal Returns is the additional returns in output due to an additional unit increase in input.…
Q: MNLOGS harvested logs (with no inputs from othher companies) from their property in northern…
A: Value added by a firm is the difference between revenues earned by the firm and cost it incurs.
Q: Refer to Table 7.9 and Figure 7.7 above. What is the marginal gain in output from increasing the…
A: Answer to the question is as follows:
Q: What is meant by technological advance, as broadly defined? How does technological advance enter…
A: The discovery of new and improved methods of manufacturing products refers to technical advances.…
Q: The federal government of Canada is implementing a new excise tax called a carbon tax. Why is the…
A: Carbon tax is the tax levy on production to reduce the emission of carbon in the atmosphere . To…
Buffalo Bill has a potato chip company, Buffalo’s Chips. He is currently losing money on every bag of chips he sells. Mrs. Bill, who has just completed an economics class, tells Bill he could make a profit if he adds more machines and produces more chips. How could this be possible? What is Mrs. Bill assuming about the output range in which Bill is currently producing?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Amos McCoy is currently raising corn on his 100-acre farm and earning an accounting profit of $100 per acre. However, if he raised soybeans, he could earn an accounting profit of $200 per acre. Is he currently earning an economic profit? Why or why not?The following graph shows the demand curve, as well as the AVC, ATC and MC curves of a company selling rolled oats in a perfectly competitive market. Use the graph to answer the questions. The goal of the company is to maximize its profit. How many boxes of rolled oats should it sell to attain this goal? What price will it charge? How much profit does this firm make per month? Will this company produce or shut down in the short run? Why? Will this firm exit the market for rolled oats in the long run or not? Why?Lisette owns a bakery. If she expands the size of her bakery but her average total cost of producing bread remains unchanged in the long run, what is Lisette experiencing?
- When do firms decide to shut down production in the short run? Explain it. How is the short run average cost curve and the long run average cost curve shaped? What is the difference between them?What are the short-run and long-run costs of the production of Walmart?From the economics information below Answer This QUESTION : What are the Starbucks’ maximum profit conditions? In January 2020, Starbucks raised their beverage prices by an average of1% across the U.S, a move that represented the company’s firstsignificant price increase in 18 months. I failed to notice because the pricechange didn’t affect grande or venti (medium and large) brewed coffeesand I don’t mess with smaller sizes, but anyone who purchases tall size(small) brews saw as much as a 10 cent increase. The company’s thirdquarter revenue rose 25% to $417.8 million from $333.1 million a yearearlier, and green coffee prices have plummeted, so what gives?Starbucks claims the price increase is due to rising labor and non-coffeecommodity costs, but with the significantly lower coffee costs alreadyimproving their profit margins, it seems unlikely this justification is the truereason for the hike in prices. In addition, the price hike was applied to lessthan a third of their beverages and…
- Discuss in detail the short and long run laws of production.Which stage of short run production is efficient? Why?Assume that the plum market has lots of different farms. They are producing pretty much the same product. The plum market is very much like a perfectly competitive market. When answering these questions, please use an explanation in words and the diagrams of the perfect competition model. A capitalist interested in the California plum market has asked you for an analysis. The capitalist comments, “I am guessing that plums are going to increase in popularity. What does that mean in the market?" Help this capitalist understand what might happen in this market given that plums will experience an increase in popularity. Please apply the perfect competition model. 1. One thing California plum farmers will need to consider is that the cost of water is going to increase (due to water shortages). Consider the cost of water part of the farmers cost of growing plums. Please explain to this capitalist what is expected to happen in the market. Don't forget to use perfect competition…
- Assume that the plum market has lots of different farms. They are producing pretty much the same product. The plum market is very much like a perfectly competitive market. When answering these questions, please use an explanation in words and the diagrams of the perfect competition model. A capitalist interested in the California plum market has asked you for an analysis. The capitalist comments, “I am guessing that plums are going to increase in popularity. What does that mean in the market?" Help this capitalist understand what might happen in this market given that plums will experience an increase in popularity. Please apply the perfect competition model. a. In the short-run, what will a typical plum farm experience? Why? Don't forget to use perfect competition diagram(s) when explaining it.Assume that the plum market has lots of different farms. They are producing pretty much the same product. The plum market is very much like a perfectly competitive market. When answering these questions, please use an explanation in words and the diagrams of the perfect competition model. A capitalist interested in the California plum market has asked you for an analysis. The capitalist comments, “I am guessing that plums are going to increase in popularity. What does that mean in the market?" Help this capitalist understand what might happen in this market given that plums will experience an increase in popularity. Please apply the perfect competition model. b. In the long-run, what do you think will happen in the plum market? Why? Don't forget to use perfect competition diagram(s) when explaining it.microeconomics . This firm will maximize profit by producing at output level: (pick the correct letter) f g h j
