a) "The above production schedule shows that the firm is producing in the long run because quantity of labor can be changed." Explain why this statement is false. b) "In production, short run is a smaller period than the long run, for example, if the long run is 12 months then the short run should be less than 12 months". State why this statement is incorrect. c) Calculate marginal product of labor, fixed costs, variable costs, average fixed costs, average variable costs, average total costs and marginal costs, for all quantities, in a table. d) Sketch a typical LRATC and show all the important areas and points on it and show where the firm should produce.

a) "The above production schedule shows that the firm is producing in the long run because quantity of labor can be changed." Explain why this statement is false. b) "In production, short run is a smaller period than the long run, for example, if the long run is 12 months then the short run should be less than 12 months". State why this statement is incorrect. c) Calculate marginal product of labor, fixed costs, variable costs, average fixed costs, average variable costs, average total costs and marginal costs, for all quantities, in a table. d) Sketch a typical LRATC and show all the important areas and points on it and show where the firm should produce.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 3.7P

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