Total cost : It is the summation of fixed and variable cost
Marginal product: It is the amount additional of output produced per unit of input being used.
So, Total cost curve and marginal product initially increases with the increase in output but once the marginal product reaches the maximum and starts to decline, the total cost keeps increasing showing the increasing cost with the increase in input.
what happens to total cost curve due to diminishing marginal product and explain the reasons for...
The demand curve slopes downwards due to Diminishing Marginal Product of Labor B Decreasing Marginal Costs Diminishing Marginal Utility Decreasing Long-run Average Cost
14. David's firm experiences diminishing marginal product for all ranges of inputs. The total cost curve associated with David's firm a. is constant for all ranges of output. b. gets flatter as output increases. c. is unrelated to the production function. d. gets steeper as output increases.
1. Toys Create Corp., produce puzzles and sell to consumers. A worker costs MYR 100 a day, and the firm has fixed costs of MYR 200. WorkersOutputMarginal ProductTotal CostAverage Total CostMarginal Cost00---------1202503904120514061507155a. Using the information above, calculate the marginal product, total cost, average total cost, and marginal cost. Identify the output level at minimum average total cost for Toys Create Corp. b. Construct the marginal-cost and average-total-cost curves for Toys Create Corp. Using your own words, explain diminishing marginal product and...
Define the relationship between diminishing marginal product and marginal cost.
In terms of how each curve is plotted on a graph, explain the relationship between the marginal product and marginal cost curve. Draw a graph to illustrate your answer.Help please!
Explain why the convexity of the indifference curve is a different concept from diminishing marginal utility.
Holding other things constant, diminishing marginal productivity happens
What is the difference between "diminishing marginal returns" and "diseconomies of scale"? a. Both concepts explain why marginal cost increases after some point but diminishing marginal returns applies only in the short run when there is at least one fixed factor, while diseconomies of scale applies in the long run when all factors are variable. b. Both concepts explain why average total cost increases after some point but diminishing marginal returns applies only in the short run when there is...
a monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost curve for its product: Q=200-2P MR=100-Q TC=5Q MC=5 What level of output maximizes total revenue? A) 95 B) 0 C) 90 D)100 What is the profit maximizing level output? A)0 B)100 C)90 D)95 How much profit does the monopolist earn? A)4512.50 B)5.00 C)475.00 D)4987.50
Assume labor is the only variable input and that the law of diminishing returns applies, explain the relationship between the marginal product of labor and marginal costs, and the average product of labor and average variable costs. Illustrate graphically these two sets of relationships, and illustrate graphically the short-run average total cost curve. Explain why, in the short-run, that average total cost is eventually increasing as production increases