what is the use of production fuction in product analysis?

Q: Complete the following table and answer the short discussion question. Average Cost (AC) Average…

A: In economics, TFC is the cost incurred when the output production is zero; therefore, here, TFC is…

Q: Distinguish among accounting profit, economic profit, and normal profit. Does accounting profit or…

A: The difference between the revenue earned from the sale of a product and the total cost of…

Q: Explain in words why the Law of Diminishing Marginal Returns implies that there are increasing…

A: Law of diminishing marginal returns states that, as the production is continuous using factor of…

Q: Capital (K)  Labor (L) Total Product (TP) total fixed cost (TFC) total variable cost (TVC)…

A: 1.1. Assume that the cost of capital is 20 and the cost of labor is $10. Total fixed cost (TC) can…

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

A: The diminishing marginal returns would result in the associated with the utility and the production…

Q: Distinguish between accounting profit, economic profit, and normal profit. Does accounting profit…

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Q: 1. (Production) Jasmine has just inherited a restaurant. In the short run, she has to stick with the…

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

Q: 7. For the following industries, state whether the long-run average cost curve has an extended range…

A: In the long run, the AC curve will be upward sloping when it exhibits to decreasing returns, it will…

Q: The shape of the Total Product curve on the production side gives us the shape of which curve on the…

A: Total product curve represents   the total output of a firm in the short run.

Q: 1. (Production) Jasmine has just inherited a restaurant. In the short run, she has to stick with the…

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

Q: 2. Assume that the marginal cost of production is greater than the average variable cost. Can you…

A: Formula to calculate AVC and MC:- AVC=TVCQMC=TCn-TCn-1 where; TVC= Total Variable CostTC=Total…

Q: . Why is the Average Total Cost curve U shaped?

A: Average Total cost in economics is the cost that indicates how firms choose to price their…

Q: 8. Why is the Minimum Average Total Cost and Efficient Scale important?

A: Average Total Cost : The average cost or average total cost is per unit cost incurred by the firm in…

Q: BONUS: Explain precisely why in the short run the Marginal Cost curve intersects the Average Cost…

A: Minimal cost (MC) is the additional expense brought about when an additional one unit of output is…

Q: What is the difference between a feasible production plan in the short run and in the long run? Give…

A: Feasible production plan in the short run: In the short run, even though the firm is facing loss, it…

Q: Short Run Production Relationships         List and explain the 3 Short Run Production…

A: Production function is neoclassical production function. It is upward sloping, concave and marginal…

Q: Tabaq sells roasted coffee. The information about their production of coffee is given below: Labor…

A: The marginal physical product of labor can be calculated as follows: Marginal physical product of…

Q: Why does the marginal cost of production typically increase as the amount of output produced…

A: Marginal cost is the additional cost incurred to produce an additional unit of output.

Q: 6. The relationship between marginal physical product and margınal cost Hubert's Big Burger is a…

A: Marginal product is the additional output that is generated when one more unit of the variable input…

Q: Hi, I am studying chapter 11 from Microeconomics 21st edition. I am still confused about a certain…

A: The marginal cost curve of a firm cut the average total cost curve at its minimum point. In initial…

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: Expalin the law of diminishing returns or diseconomies of scales ?

A: In an economy, the law of diminishing returns and diseconomies of scale are two different concepts,…

Q: 2. A firm is using 7 units of labor and 100 units of capital to produce 1000 units of goods. At…

A: Cost of labour is $15 per unit but quantity is less Cost of capital is $2 but quantity is more

Q: hi  Suppose you build bird houses. One day, you double the time you spend building and double the…

A: Consider the definition of returns to scale. When we change all factors of production by a certain…

Q: 10. In the long run, a profit maximising firm produces any given level of output by choosing the…

A: Hi! Thank you for the question but as per the guidelines, we answer only one question at one time.…

Q: Which of the following statements are true according to the previous graph? Check all that apply. O…

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Q: Concentrate on the following production function: 10KL Q K+L Suppose w = Php 1, r = Php 4, and K = 4…

A: "A production function depicts a relation between inputs involved in the production process and…

Q: True or false. In general, production can display diminishing returns in all variables but still…

A: Diminishing returns are defined as a decrease in output due to an increase in the input after an…

Q: 4) What is the total variable cost?

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Q: 4. What is the significance of the point where the marginal cost curve intersects the average total…

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Q: 2. Suppose a firm is currently producing at point A in the figure below. Is total cost currently…

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Q: Explain what is meant by and what causes "Diminishing Marginal Product". Why is it only relevant in…

A: Marginal product refers to the increase in outpit resulting from employing additional units of…

Q: What is the law of diminishing marginal product, In which stages of production it manifest and What…

A: According to the rule of decreasing marginal returns, any manufacturing process will reach a point…

Q: What is the difference between short-run and long-run in production theory?  *Explain thoroughly*

A: Production is defined as the process in which factors of production or inputs are put to use in…

Q: State the decision rules used for finding the optimal amount of input(s) in both short-run and…

A: Hi, thanks for the question. As per the guidelines, we are allowed to answer only the first three…

Q: a. Discuss the following statements: i. The second stage of production is the optimal one for a firm…

A: There are three stages of production. 1. stage -1 : Increasing return  2. Diminishing return 3.…

Q: 4. )At Alan's landscaping firm, labor is fixed in the short run. Increasing his use of capital…

A: The first stage is increasing returns, the second stage is diminishing returns and the third stage…

Q: 3. We often work with production technologies that give rise to initially increasing marginal…

A: Marginal Product:Marginal product refers to the change in output due to the change in inputs.…

Q: 1. Figure 1 shows the production function of a firm. Y Y2 Y1 X1 X2 a) What are the variables along…

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

Q: How and why does a firm’s average-total-cost curve differ in the short run and in the long run

A: Short-run period is that period of time in which a firm can change its level of output by only…

Q: a) Complete the following table by filling in the fixed cost (FC), variable cost (VC), total cost…

A: Total Cost (TC) = Fixed cost (FC) + Variable cost (VC) or  Variable cost (VC) = Total Cost (TC) -…

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.