1. In the short run, the marginal product of labor increases then decreases because of what?...
1. In the short run, the marginal product of labor increases then decreases because of what?
2. Assume that Al's paint shop operates in a perfectly competitive market and its total cost is given by TC=150+240Q-12Q^2+2Q^3. The level of output that minimizes the average variable cost is? (Explain Answer)
A. 0
B. 6
C. 4
D.3
3. The price level at which "Al's paint shop" will decide to shut down is?
A. $1,032
B. $200
C. $222 (Answer but need explanation)
D. $240
Homework Answers
1) MPL falls due to diminishing returns to labor, as more & more units of input is used, then after a point, MPL will start decreasing
2)
Add Answer to:
1. In the short run, the marginal product of labor increases
then decreases because of what?...
Question 1 In the short run, as output increases, the difference between average total cost and...
Question 1 In the short run, as output increases, the difference between average total cost and average variable cost decreases. the difference between total cost and average variable cost decreases marginal cost eventually decreases. All of the above are correct. Question 2 The marginal cost curve intersects the at its minimum average variable cost curve average total cost curve average fixed cost curve A and B are both correct. Question 3 Refer to the short-run information provided in Figure 8.5...
cardboard boxes are produced in a perfectly competitive market. each identical firm has a short run...
cardboard boxes are produced in a perfectly
competitive market. each identical firm has a short run total cost
curve of TC= 3Q^3 - 12Q^2 +16Q + 100, where Q is measured in
thousands of boxes per week. calculate the output for the price
below which a firm in the market will not produce any output in the
short run. ( i.e., the output for the shut down price)
a 2^1/2
b. 2
c. 1/2
d. 1/square root of 2
2)...
1) A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost functions:...
1) A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost functions: TR = 10Q TC = 2 + 2Q + Q2 MC = 2 + 2Q At the level of output maximizing profit , the above firm's level of economic profit is A) $0 B) $4 C) $6 D) $8 *Additional information after I did the math: The price this firm charges for its product is $10, the level of output maximizing profit is 4...
In the short run, a perfectly competitive firm might earn negative economic profits and then decide...
In the short run, a perfectly competitive firm might earn negative economic profits and then decide to shut down. On a graph, show this situation, using marginal revenue, marginal cost, average-total-cost, and average-variable-cost curves. Indicate the level of output at which the firm will no longer produce. Explain why your graph shows the shut down point.
Short Answer (5 pts) 16.) Explain why marginal cost initially decreases and then increases, creating a...
Short Answer (5 pts) 16.) Explain why marginal cost initially decreases and then increases, creating a curve that looks like the Nike "swoosh" Table (10 pts) To start up a small part time business assume your only costs are paying $1,000 to rent a small factory and paying each employee you hire $100. Based on the previous information complete the following table and answer the questions that follow. Q TFCTVC TCMC AFC AVC ATC TPMP O 0 0 0 10...
24. The long run average cost curve decreases due to a. A reduction in short run marginal cost b. A reduction in sh...
24. The long run average cost curve decreases due to a. A reduction in short run marginal cost b. A reduction in short run average cost curves c. Economies of scale d. Both a and b e. Both b and c You are given the following cost data: Quantity TVC TFC REALITATE 1250 12 25 34 46 25. What can you say regarding the pattern of the cost? a. Average fixed cost falls as quantity increases b. Average variable cost...
8. In the short run, a perfectly competitive firm will shut down if it is producing...
8. In the short run, a perfectly competitive firm will shut down if it is producing a level of output where marginal revenue is equal to short-run marginal cost and price is A. Greater than average total cost. B. Less than average total cost. C. Greater than average variable cost. D. Less than average variable cost E. None of the above 10. Given your answer to Question 8, what can you say about Hanna's firm: A. It should continue operating...
Suppose the firm’s total cost and marginal cost functions are given by TC=54+Q+2Q^3 and MC=1+4Q^2, respectively....
Suppose the firm’s total cost and marginal cost functions are given by TC=54+Q+2Q^3 and MC=1+4Q^2, respectively. What is the output level that minimizes average total cost? A. 2 B. 3 C. 6 D. 8
QUESTION 5 The marginal product for labor is given (MP) = 3 – 0.02*L; price of...
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As product differentiation decreases, ________ increases. a markup b demand inelasticity c marginal cost d demand...
As product differentiation decreases, ________ increases. a markup b demand inelasticity c marginal cost d demand elasticity e excess capacity A monopolistically competitive firm is inefficient because the firm a is not maximizing its profit. b earns positive economic profit in the long run. c produces an output where average total cost is not minimum. d produces where price is equal to minimum average total cost. e is producing at an output amount that corresponds to marginal cost equal to...
Question 1 In the short run, as output increases, the difference between average total cost and average variable cost decreases. the difference between total cost and average variable cost decreases marginal cost eventually decreases. All of the above are correct. Question 2 The marginal cost curve intersects the at its minimum average variable cost curve average total cost curve average fixed cost curve A and B are both correct. Question 3 Refer to the short-run information provided in Figure 8.5...
cardboard boxes are produced in a perfectly
competitive market. each identical firm has a short run total cost
curve of TC= 3Q^3 - 12Q^2 +16Q + 100, where Q is measured in
thousands of boxes per week. calculate the output for the price
below which a firm in the market will not produce any output in the
short run. ( i.e., the output for the shut down price)
a 2^1/2
b. 2
c. 1/2
d. 1/square root of 2
2)...
Short Answer (5 pts) 16.) Explain why marginal cost initially decreases and then increases, creating a curve that looks like the Nike "swoosh" Table (10 pts) To start up a small part time business assume your only costs are paying $1,000 to rent a small factory and paying each employee you hire $100. Based on the previous information complete the following table and answer the questions that follow. Q TFCTVC TCMC AFC AVC ATC TPMP O 0 0 0 10...
24. The long run average cost curve decreases due to a. A reduction in short run marginal cost b. A reduction in short run average cost curves c. Economies of scale d. Both a and b e. Both b and c You are given the following cost data: Quantity TVC TFC REALITATE 1250 12 25 34 46 25. What can you say regarding the pattern of the cost? a. Average fixed cost falls as quantity increases b. Average variable cost...
8. In the short run, a perfectly competitive firm will shut down if it is producing a level of output where marginal revenue is equal to short-run marginal cost and price is A. Greater than average total cost. B. Less than average total cost. C. Greater than average variable cost. D. Less than average variable cost E. None of the above 10. Given your answer to Question 8, what can you say about Hanna's firm: A. It should continue operating...
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