Economist describe short run decisions as constrained decisions while long run decision are described advanced planning decisions, referring a firm’s short run average cost function and long run average cost function, explain this distinction.

Q: You are planning to start a business. When calculating the costs. You have considered the costs of…

A: Opportunity cost refers to the best alternative foregone when choosing the other alternative.

Q: please analyze interaction of marginal cost and average cost numerically and derive the formula of…

A: C = 9720 + 500q - 1.5q2 + 0.005q3 Average cost (AC) = C/q = (9720 / q) + 500 - 1.5q + 0.005q2…

Q: True or false? a. The AFC curve can never rise. b. Diminishing marginal product is a long-run…

A: The AFC stand for Average Fixed Cost curve which refer to that price of a commodity in the economy…

Q: A firm called Anonymous of Toronto makes corrugated cardboard boxes. It decides to increases all of…

A: The firms, and businesses in an economy tend to operate with the motive of earning maximum amount of…

Q: You are analyzing a new company’s records projecting their profits using a marginal profit function,…

A: We are going to use marginal approach to answer this question.

Q: A product requires 14 hours to complete the first unit. Managerial experience has estimated the…

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Q: Indicate whether each of the following is anexplicit cost or an implicit cost.a. A manager’s…

A: Explicit Costs are costs that are directly incurred by the business. They can be seen in the…

Q: 3- Given the total-cost function C(Q) = Q³ – 5Q² + 12Q + 75, Write out the marginal cost function.…

A: Marginal cost indicates the extra cost of producing one additional unit of output. The function for…

Q: Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per…

A: The opportunity cost refers to the value or cost of the next best alternative among all available…

Q: Modified True or False: State whether each statement is true or false. If the statement is false,…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Discuss the relationship that exists amongst the three short - run total cost curves. Motivate your…

A: The three short run cost curves are average cost curve ,marginal cost curve and average fixed cost…

Q: Calbee spent $100 to make 10 face shields. Calculate the average fixed cost of each face shield if…

A: Given  Total Cost = $100 Quantity = 10 units  Total Variable Cost = $50   Total Cost = Total Fixed…

Q: Economists describe short-run decisions as "constrained" decisions, while long-run decisions are…

A: The factors of production are the factors that are being used in the process of production by the…

Q: Modified True or False: State whether each statement is true or false. If the statement is false,…

A: Fixed cost refers to the cost which does not change with change in the output level.

Q: When ONLY total costs (TC) are known, such as shown in Table 1 below, explain how to calculate each…

A: Since we only answer up to 3 sub-parts we will answer the first 3. Please resubmit the question…

Q: Three college students are considering operating a tutoring business in economics. This business…

A: Fixed costs are the costs paid for resources whose quantities cannot be changed in a fixed period.…

Q: Explain the difference between explicit and implicit costs, and giveexamples of each.

A: Cost refers to the expenses that firms have to incur in the production of their goods and services.…

Q: QUESTION Sahar is analyzing the probability to open her own beauty salon. If she chooses to operate…

A: Answer - Given in the question - Rent = Rs 70,000 PM  salary of staff = RS 30,000 pm  Earning = RS…

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: 3. (Long-run costs,) Carmela's pasta factory employs workers and pasta machines according to the…

A: Given:- Production function: f(L,K)=l0.5K0.5Hourly cost of capital=$10Hourly cost of worker=$40 To…

Q: What is a sunk cost? Provide an example of a sunk cost other than one from this book. Why are such…

A: Cost refers to the expenses that the firm incurs in the production process of its goods and…

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…

Q: Marginal analysis (a.k.a. thinking at the margin) Multiple selects     assumes dimishing marginal…

A: Marginal analysis is the process of comparing additional benefits accrued to the additional costs…

Q: The following table states pre-Covid round-trip airfares (for a two-week trip in February,  booked…

A: Price discrimination refers to when the firm charges different prices to different customers for the…

Q: Consider the following information about the input choices and prices, produci the same output in…

A: Cost minimization refers to optimal usage of factors of production such that for production of a…

Q: (Long-run costs,) Carmela's pasta factory employs workers and pasta machines according to the lowing…

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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: A young chef is considering opening his own sushi bar. To do so, he would have to quit his current…

A: The difference between implicit and explicit cost is important to understand the difference between…

Q: Answer the following Questions. Include referencing where additional sources have been used a. Why…

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

Q: Differentiate between explicit and implicit costs. Explain the importance of considering both types…

A: Explicit cost: It is the cost that is incurred in running the day-to-day operations of a business…

Q: What is the difference between economic profit and accounting profit? What is a normal rate of…

A: As per honor code, we’ll answer only one question at a time , we have answered the first question…

Q: A firm with positive fixed costs encounters CRS and then DRS as it expands production. Show the…

A: Constant return to scale where MP is a horizontal line and In Diminishing returns to scale MP is…

Q: which of the following reflects the correct rleationship between average total cost(ATC) and…

A: Average Total Cost The average total cost or average cost is the cost per unit of both fixed and…

Q: If accounting profit is $400,000 greater than economic profit, what do implicit cost equal?

A: We know that: Accounting profit = Total revenue- Total explicit cost Economic profit = Total revenue…

Q: QUESTION 3 Let c(w1; w2; y) be a cost function, and let A > 1. We have: Oa. ( A w1; Aw2: y) = c(w1;…

A: Hi there , as you have posted multiple question, as per our guidelines we are only allowed to answer…

Q: Imagine you own your own business. Based on what you learned from the simulation, what factors would…

A: The firms total costs are equal to the sum of its variable costs and fixed costs. Fixed costs are…

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

A: A sunk cost is the cost that is already paid and is non-recoverable.  An example is the fixed costs…

Q: Distinguish between short-run and long-run production decisions and illustrate their impact on costs…

A: Average cost is total cost divided by total production while marginal cost is the change in total…

Q: Find TC, MC, AFC, AVC, and ATC from the following table. Instructions: Enter your responses rounded…

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Q: Indicate whether each of the following is an explicit cost or an implicitcost.a. A manager's…

A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…

Q: A firm earns normal profit Selected Answer: c. when explicit costs equal implicit costs. Answers: a.…

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Q: Bloomswood Hotel is situated in​ Forkland, a picturesque town in the mountain region of a country.…

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

Q: The cost formula for a company can be modeled by C=1092+40x+0.1x2C=1092+40x+0.1x2 where xx…

A: The break-even point of a firm is the production level where the total revenue generated from the…

Q: Why do we refer to the long-run average cost curve as a "boundary"? a. The points below the curve…

A: * ANSWER :-  *(46) * The OPTION E (The points on the curve represent a boundary between fixed factor…