1.) If firms are rational, why is it they could underproduce or overproduce? 2.) What is the demand for products or factors that are not directly consumed but go into the production of a final product? 3.) In short run production function, when a total product reaches its maximum, marginal product becomes what?

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A:

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A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

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A: Since both are distinct questions, we will answer the first one (3) only. Please resubmit the other…

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A: In microeconomics, the study of the resource market where the demand for the factor is a derived…

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A:

Q: “In the short run, a company has to operate as efficient as possible to accomplish the profit…

A: Please repost your question, as we are allowed to answer only 2 questions. a In achieving the short…

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A: (a) In the long run optimal production and price level for a firm will be at a equilibrium point…

Q: 1. Why do marginal costs tend to rise, and marginal benefits tend to fall? Explain.

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: ART II:        True/False and Multiple Choice   In economics, implicit costs refer to the…

A: 1.Implicits costs are those that have been occurred but are not recorded or reported as an…

Q: Why Law of Diminishing Returns is a short run law?

A: Law of Diminishing returns states that as more of the variable factor is combined with the fixed…

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A: the question and specify the other subparts you’d like answered. It is believed and assumed in…

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A: Answers   TC=200+55q a) Fixed cost is that cost that is constant throughout all the quantities of…

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A: Profit maximization is the ultimate goal of the firm.

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A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

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:

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A: The marginal cost is the additional cost incurred from producing one additional unit of goods and…

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A: The Law of diminishing marginal returns states that the increase of a single factor of production…

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A: The economics is a study of social science which deals with the social or human behavior and the…

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A: Average cost: The average cost for a firm can be defined as the cost incurred per unit of output for…

Q: Explain the idea behind diminishing marginal returns and give a real-life example.

A: Diminishing Marginal Returns happen while expanding one unit of creation, while holding different…