a software production firm, average product has started falling and total output indicated diminishing trend. The production manager Mr. Yahya called you and asked you to see the condition of marginal product. You analyzed the situation and reported that marginal product falling more than average product. Mr. Yahya got surprised. In your opinion which situation the firm is heading to?

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Given: To Find: The short-run total cost if Ike's Bikes is currently producing 600 bikes: The…

Q: You are the chief financial officer for a firm that sells digital music players. Your firm has the…

A: Marginal cost: It is the cost of producing an extra unit.

Q: An entrepreneur invests $10,000 of her personal savings in her new business venture. Furthermore,…

A: Opportunity cost: - opportunity cost is a forgone benefit that we could have earned by applying all…

Q: Total fixed costs (dollars) Total variable cost (dollars) Total cost (dollars) 0 0 200 ​ ​ 1 20 ​…

A: Total cost is the sum of fixed cost and variable cost. Fixed cost does not depend on output. It…

Q: Say that neither labor nor machines are fixed but there is a 50 percent quick-order premium paid for…

A: Explicit costs and revenues are those financial transactions that are directly related to a decision…

Q: In Modules 3 and 4 we explained how consumers and businesses are better able to adjust purchases and…

A: Short run is the time period where at least one of the factors of production remains fixed. For eg.…

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: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Short run average cost curve is the per unit cost of production in the short run. In the short run,…

Q: The long run is a period of time: that is too short to change the size of a firm's plant. that is…

A: The economy evaluates its production process or policy implication in two different brackets of time…

Q: . Over time Yasir decides to expand his business. In the long run he first experiences economies of…

A:

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: To produce 100 bikes using 1 factory, short run average cost is $360.

Q: In the long-run, a company that produces and sells popcorn incurs total costs of $1,350 when output…

A: Economies of scale occur when the average total cost (ATC) decreases as output increases in the long…

Q: When the marginal product of labor diminishes average fixed cost rises average variable cost is…

A: Marginal product of labor is the additional output produced by employing an additional unit of…

Q: The local ice cream shop is trying to figure out how many workers to hire, and part of the decision…

A: Answer to the question is as follows :

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: * SOLUTION :-    Given that ,

Q: What is a production function? Response option group It is the production technology It is the…

A: A production function highlights the relationship between quantities of physical inputs and…

Q: We expect the marginal cost to increase as this firm produces more computers. But when the firm…

A: The rise or fall in the cost of producing/providing one more product is referred to as marginal…

Q: At the Amarillo Piano Company, the average product of labor stays constant at 5, regardless of how…

A: The total product of labour divided by the number of units of labour employed, or Q/L, is the…

Q: Discuss the Law of Diminishing Returns.

A: The Law of Diminishing Returns is also called the law of the variable proportion

Q: State the relationship between AVC and AP (average product)

A: Average product (AP): Average product can be find by dividing TP / TVF. Where, TP is total product…

Q: Staples Closing Another 70 Stores as North American Sales Sink Staples closed 48 of its North…

A: а)  Shоrt  run  deсisiоn:  Сlоsing  рhysiсаl  stоres. Lоng  run  deсisiоn:  Strengthening…

Q: For an increase in output, average costs change by more in the short run than in the long run, but…

A: Average Price The total cost is divided by the number of things produced to get the average cost.…

Q: When the marginal product of labor equals the average product of labor, then a. the marginal product…

A: Marginal product is the additional output produced by employing an additional unit of input.

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: There are 3 possibilities in short run: If the firm uses only 1 factory then its short run will be…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: When an increase in input leads to a proportional increase in output, this is known as a constant…

Q: Refer to the table below which shows the total cost of producing various output levels in the long…

A: Diseconomies of scale refers to the increase in average cost of production when firm increases…

Q: "When the total cost of production decrease, we can say that the firm faces positive return to…

A: The firm would result in the production of the various goods and services which would involve the…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Short-run total cost (SRTC) and long-run total cost (LRTC) curves increase in the output value…

Q: Suppose a firm producing cell phones is operating such that marginal costs are much lower than…

A: The marginal cost of the firm is the cost it will incur by producing one additional unit of output.…

Q: occurs when the marginal product of an additional worker exceeds the marginal product of the…

A: Marginal product of an additional worker is the change in output resulting from one additional…

Q: PART 2 Question 1 a. The following table summarizes the short-run production functions for "All…

A: ince you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: since you have asked multiple questions and according to our policy we can only solve the first part…

Q: firm had sales revenue of $1 million last year. It spent $600000 on labor, $150000 on capital…

A: Following is the given information: Sales revenue = $1 million Amount spent on labor = $600000…

Q: Fill in the column of marginal products. b. A worker costs $100 a day, and the firm has fixed costs…

A: MPn =TPn - TPn-1 ATC = TC / Q MCn = TCn - TCn-1

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Given:- Ike's bikes is major manufacturer of bike and total 3 factories. To calculate:- Short run…

Q: Kevin runs a surfing school on the North Shore of Oahu. He has two inputs: surfboards, which he…

A: When marginal product per dollar is equal among the inputs, the firm achieves cost minimization.

Q: Refer to the figure below:

A: The given graph shows the consumption and the investment in different years and in some years the…

Q: A firm has the following average total cost curves: Quantity ATC11 ATC22 ATC33 ATC44 1 100 150 50…

A: Answer-

Q: !

A: The short run is a concept that states that at least one input is fixed while others are variable…

Q: Ike’s Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: There are 3 possibilities in short-run: If the firm uses only 1 factory then its short run will be…

Q: Diminishing returns occurs in the short run because The average product of labor will decrease after…

A: A firm faces different market situation in the short-run as well as in the long-run.

Q: The table below shows ABC firm short-run production function.  The company hires workers at a wage…

A: “Since you have asked multiple questions, we will solve the first question for you."

Q: For its current level of production, a firm is attempting to minimize its costs. The firm has…

A: The marginal product of labor is 10 =>MPL=10 ------- The marginal product of capital is 20…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Average cost =total cost/ quantity Increasing Returns to scale shows that LAC decreases by…