Briefly explain  (a) Why the producer prefers stage 2 in production process.

Q: What is Explicit Cost?

A: The cost of production is the cost incurred in the process of production in the economy by a firm.…

Q: At what level of production does the marginal cost have the least value? What is the marginal cost…

A: The marginal cost curve is the U-shaped curve.

Q: What are diminishing marginal returns? Using a diagram you have learned show and explain diminishing…

A: A production function shows the unique relationship between inputs and outputs. The change in output…

Q: Based on the graph provided  i. What is Freda’s marginal cost for each cookie? ii. What is Freda’s…

A: Marginal Opportunity Cost :  Marginal Opportunity Cost may be defined as that amount of a good…

Q: Briefly explain (c) Why Marginal cost curve is U-shaped?

A: Marginal cost (MC) is the change in total cost when one additional unit is produced.

Q: Briefly describe the flow of costs in a manufacturing company?

A: Cost flow refers to how or the direction by which costs pass through a organization. Usually, the…

Q: In recent years, the United States has experienced large increases in oil production due in large…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: What explains the shape of the average and marginal cost curves?  Is it linked to any production…

A: Marginal cost is the measurement of change in total cost with the increment of quantity produced by…

Q: B) Is the following statements correct or incorrect? Briefly explain: i) A rational producer will…

A: A rational producer is one who wanted to maximize their profit from the business transactions.…

Q: What is the definite rule to maximize profit?

A: Profit is the difference between total revenue and total cost and profit is maximized where the…

Q: Briefly explain production function and profit maximization with a diagram in short.

A: The relation between the quantity of productive inputs (such as labor and capital) utilized and the…

Q: What is sunk cost? Provide an example of a sunk cost. Why are such costs irrelevant in making…

A: Costs refer to the expenses which are made by the firms in the production of goods, and services.…

Q: Why is having a business objective of increased economies of scale always desirable?

A: Economies of Scale in the Business World When it comes to economies of scale, the size of the…

Q: The law of diminishing returns states that

A: GIVEN   The law of diminishing returns states that is

Q: What happens to fixed cost as the quantity produced increases?

A: In the market, when a firm makes production activities, there are various costs incurred during this…

Q: Is it possible to avoid Diminishing Marginal Return? Why? Explain

A: Law of diminishing returns postulates that as more units of a variable input are used with a fixed…

Q: What level of output does a firm produce?

A: The quantity of products and services produced in a particular time period is referred to as output…

Q: The optimal level of production for any company is the level of production that either maximizes…

A: All firms will make the production where its marginal revenue (MR) equals to marginal cost (MC), to…

Q: Using an example , explain the production proces

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: What stage of production is efficient region of production in short run?

A: There are three stage of production. The law of variable proportion can be divided into three…

Q: How is the optimum point of production for a firm determined?

A: Point of optimum production is that in which the plant is operated at its full capacity. When the…

Q: what is the importance of long run and short run production in production theory?

A: A production function is a functional relationship between the inputs which are used in the process…

Q: Why do you think that average and marginal cost curves have the same general shape?

A: Average cost: it is the per unit cost of production calculated by using the following formula.

Q: The table below shows how the number of university classrooms cleaned in an evening varies with the…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: What is economies of scale? What are differences between internal and external economies of scale?

A: Economies of Scale: When a company expands its production then usually the cost per unit falls.…

Q: Briefly write the behaviour of Average fixed cost when output increase

A: # By the name itself we can see that average fixed cost is on an average value of fixed cost…

Q: What is law of diminishing marginal returns

A: The law of diminishing returns is significant because it informs economists' beliefs that a firm's…

Q: What is Cost Competitive Advantage?

A: Competitive advantage is a set of different features of a company and the products that it produces…

Q: In the short run, even when output is zero, the firm still has some variable costs it must pay." Is…

A: Concepts related to the question: i). Shutting down point- The point at which it is thought by the…

Q: Explain how firms can maximize profits using marginal analysis.

A: Profit increase could be a method that companies bear to ensure that they need the most effective…

Q: Discuss about the concept of marginal cost using your own example?

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: Complete the following table: Marginal Output Average Cost Cost

A: There are two type of cost in production 1) Fixed cost - fix in nature…

Q: Economic profit is:

A: Economists and Accountants measure profit differently.

Q: You are working for a company that does helicopter tours of the Grand Canyon. So far, you have…

A: (a) Initial total cost (TC1) = 500 By organising an additional tour, new average cost = 55 Hence,…

Q: In the short run, if a firm chooses to operate and produce output, it must be the case that

A: The shutdown point of a firm comes when the price of the goods sold is less than the variable cost…

Q: Illustrate and briefly explain the relationship  between Marginal cost and average cost curves

A: The markets are the place where the buyers and the sellers of goods and services tend to interact…