In order to maximize the profit, what decision do you think is the most important one?

Q: Another important law in economics is the “law of marginal returns or the law of…

A: The law of marginal returns indicates that when the firm uses more of the same variable input to…

Q: Explain how short-run economic profits become long-run economic costs. When profits fall to zero,…

A: A stopwatch or a calendar cannot correctly identify the boundary between the short and long runs. It…

Q: Explain why it is not economical for a firm to operate under increasing returns and negative…

A: Solution: Increasing return: It is the first phase of production. In this phase every additional…

Q: Another important law in economics is the “law of marginal returns or the law of increasing costs".…

A: Marginal return refers to the additional output that obtained by increasing one more unit of input.

Q: Why do economists believe that economic profit is the more accurate measure of a business success?…

A: Accounting profit only considers the cost that has actually happened, but economic profit considers…

Q: Description   Given the following graph, please label the curves where asked and answer the…

A: Here ,we have to find profit - maximizing level of output.

Q: Mark is opening an ice cream stand. He believes the fixed cost per week of running the stand is…

A: All the information is provided in the following table and formula used are as follows : Fixed Cost…

Q: Question : Imagine a small juice shop that only fresh fruit juice. i) Discuss the concept of…

A: i) Discuss the concept of marginal cost and average total cost using the given situation. Answer:…

Q: Soft drink industry has been historically profitable why? compare the economies of the concentrate…

A: Soft drink Industries are profitable because:- These industries needed lower investments. This can…

Q: What is the relationship between a firm’s total revenue, profit, and total cost?

A: Total revenue (TR) is the amount earned by the firm by selling its goods. Total Cost (TC) is the…

Q: Why is it important for managers to understand the mechanics of supply and demand both in the short…

A: The terms "long run" and "short run" do not relate to a specific time period like three months or…

Q: Define the term Fixed-cost behavior?

A: A company mainly faces two type of costs known as fixed cost and variable cost. These two costs are…

Q: What is the difference between Economic Profit and Accounting profit?

A: Explicit Cost is the cost paid to factors of production that are hired from outsiders. Implicit Cost…

Q: It is clear that businesses operate in the short run, but do they ever operate in the long run?…

A: When a business is established the main focus of the owner is to conquer the short-run functions and…

Q: MC ATC AVC AFC 40 70 80 90 Quantity Costs

A: Diminishing returns begin where MC curve starts rising or MP curve starts to fall. Most productive…

Q: If the owner of the drugstore hired a manager for $10 an hour to take his place, how much of a…

A: Answer -

Q: The law of diminishing returns is a long-run concept. a. True b. False

A: According to the given question In simple words we can say that long run is a type of the period in…

Q: What are examples of fixed and variable costs in a fast food restaurant?

A: Total fixed cost (TFC)is defined as those cost which a firm must pay irrespective of its level of…

Q: what tools and techniques are available to improve a firm's profits?

A: There are many tools and techniques available which is used by the firm to improve profit.Following…

Q: Distinguish between explicit and implicit costs, giving examples of each. Why does the economist…

A: Externalities: It occurs in the economy when the production of goods and services and the…

Q: What must an entrepreneur do to earn a profit? How do the actions of firms earning profits influence…

A:

Q: What is meant by normal profit?

A: The total revenue earned by a firm operating in a market is the sum of payments received from the…

Q: Microeconomics divides costs in to “short-run costs” and “long-run costs”. Can “long-run” differ…

A: The short run is defined as the time frame during which wages and prices of other production inputs…

Q: Explain Fixed costs versus variable costs and give an example?

A: Fixed Cost: It is the cost that is incurred for purchasing fixed factors of production. It is…

Q: Describe the methods that can be used to to determine where profit is maximized?

A: A firm in short run and long run chooses to maximize its profits. Output levels of the firm are…

Q: What does that mean in terms of long-run profit?

A: Perfectly Competitive Market is the market in which buyers and sellers are large in numbers and they…

Q: tate the law if Diminishing Returns. Give example.

A: Law of diminishing returns also known as law of variable proportion

Q: B. The table below shows the cost structure of a hypothetical firm, ClementAddae Enterprise.…

A:

Q: Are there some companies where the learning curve may not apply as much? What are some signs that a…

A: A learning curve is a concept. It often to illustrate the repeated task of an employee or worker. It…

Q: What is the difference between economic profit and accounting profit?

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

Q: What must an entrepreneur do to earn a profit? How do theactions of firms earning profits influence…

A: Profits are important as they show how productive a company's activities are. Furthermore, profits…

Q: Which stage of short run production is efficient? Why?

A: In microeconomics, we have two time periods namely short run and long run. Short run is the time…

Q: 1.) If firms are rational, why is it they could underproduce or overproduce? 2.) What is the demand…

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

Q: Discuss the concept of the law of diminishing marginal returns

A: The total product (or return) refers to the aggregate goods and services produced by the firm at…

Q: What is the law of diminishing returns and what does it imply about the shape of the firm’s average…

A: Returns to scale is an important concept in economics which studies how the output is affected if…

Q: Q 60. Which of the following has another important implication of the law of diminishing returns?…

A: The rule of declining marginal returns is an economic theory that states that once an optimal level…

Q: How is it possible to have positive accounting profit and negative economic profit concurrently?

A: Answer: Let us first understand the difference between accounting profit and economic profit.…

Q: Explain the law of diminishing returns.

A: In economics, various laws and theory are used to explains specific market activity. These laws arr…

Q: The difference between economic profit and accounting profit is?   Average cost Direct costs…

A: Cost is the expenditure incurred by firms on the production of goods and services. The cost can be…

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…