What must an entrepreneur do to earn a profit? How do theactions of firms earning profits influence the value of resources?What happens to the value of resources when losses are present?If a firm making losses goes out of business, is this bad?Why or why not?

Q: When a profit-maximizing firm is earning profits, what can identify those profits?  A. (P – AVC) × Q…

A: Profit maximization is the goal of all the firms operating in the market.

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 how a firm can have constant returns to scale in production and economies of scale in cost.

A: Constant Returns to scale refers to the situation where with the change in the production, the cost…

Q: How would the long-run equilibrium output change if new natural resource (energy) was discovered?…

A: Natural resources are the raw materials that are used by the business organizations in order to…

Q: How do fixed costs change over the long-term? Do costs get re-categorized into a variable cost when…

A: Fixed costs are the costs that do not change with the change in quantity while variable costs are…

Q: True/False? Discuss. If there weren’t diminishing marginal returns all the rice in the world could…

A: The law/fundamentals of Diminishing-Marginal-Returns (DMU) states that while working with fixed…

Q: In the graph below, you can see the iso-cost curve and the iso-quant curve for the firm to produce q…

A: the iso-cost curve is his budget line. An iso-cost line is a graph that depicts numerous input…

Q: People often believe that large firms in an industry have cost advantages over small firms in the…

A: Individuals generally feel that big businesses have economic benefits in a sector over smaller…

Q: Lake Charles Seafood makes 500 wooden pack-ing boxes for fresh seafood per day, working in two…

A: Productivity is represented as the ratio between the amount of output and the number of inputs. In…

Q: d. If her marginal costs increase to MC2 will she reduce her output? (Click to select)

A: Given,

Q: Explain how the stages of production are determined. Give information about the shape and slope of…

A: A production function shows the unique relationship between inputs and outputs. It shows the maximum…

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

A: opportunity cost is what is sacrificed when a person select one option over another one. it is a…

Q: Question attached In early 2008, you purchased and remodeled a 120-room hotel to handle the…

A: Given: Average cost per room=$70 Selling price=$20 million Cost of capital=10% no. of room…

Q: Suppose that firms in the zipper industry have the production technology: F(K,L)=4K^(3/4) * L^(1/4)…

A: Answer: Given: Production function: FK,L=4K34×L14 Cost/price of labor = 27 Cost/price of capital =??…

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: 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: Assume you are an engineer working for a chemical production company. You are on the technical team…

A: A production company, house, studio, or team is a corporation that provides the physical…

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

A:

Q: 11.)(*) Ollah’s Organic Pet Shop sells about 4,000 bags of free- range dog biscuits every year. The…

A: We are going to use Economic Order Quantity and Total holding & operating cost concept to answer…

Q: What are some of the implicit cost incurred by an entrepreneur in running a firm? How are these…

A: The opportunity cost refers to the value of the next best alternative sacrificed when an individual…

Q: In 2009 General Motors (GM) announced that it would reduce employment by 21,000 workers. What does…

A: In microeconomics, the study of the resource market where the demand for the factor is a derived…

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

A:

Q: Does additive manufacturing rely on economies of scale to deliver low costs? What are two ways in…

A: Economies of scale refer to the situation of reducing the total cost during the process of…

Q: Distinguish between explicit and implicit costs, giving examples of each. What are some explicit and…

A: Implicit Cost: Implicit cost is due to the factors which are entrepreneur himself owns and employs…

Q: Why do different resource owners obtain different profits, even when operating in the same industry?…

A: Resource owners are the agents that provide resources in the production process. They include labor,…

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

A: An entrepreneur should always remember that its revenue should be higher than its cost in order to…

Q: 1. Why do marginal costs tend to rise, and marginal benefits tend to fall? Explain.

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

Q: How does rising organic composition of capital threaten the rate of profit?

A: Historically, there have been a lot of economic theories stating the requirements for the…

Q: Suppose that a firm's monthly marginal return from every dollar spend on research & development is…

A: Answer -

Q: TRUE or FALSE and explain your answer fully If the cost of production is minimized, then all inputs…

A: The marginal productivity (MP) is the additional increase in the total productivity when one more…

Q: A firm produces identical outputs at two different plants. If the marginal cost at the first plant…

A: The firm seeks to maximize the profit. The profit is maximized where the MR=MC. Firm can use its…

Q: What stage of production is the increase in output that results from increase in a firm's outputs by…

A: When the increase in output that results from increase in a firm's output by some proportion it is…

Q: a- The Western U.S. saw record heat waves in August, 2021. Electricity is heavily used in air…

A: Marginal cost refers to the additional cost of producing an additional unit of the good.…

Q: If a paper mill shuts down its operations for three months so that it produces nothing, its will be…

A: Variable cost Variable expenses are volume-related and alter as production levels change. Raw…

Q: The law if diminishing marginal returns is the rate at which one input maybe substituted for another…

A: The law of diminishing marginal returns is not the rate of substitution of one input for another…

Q: In 2005 General Motors (GM) announced that it would reduce employment by 30,000 workers. What does…

A: Meaning of Marginal Revenue Product and Marginal Resource Cost: The term marginal revenue of…

Q: Do you think that the taxicab industry in large cities would be subject to significant economies of…

A: The economies of scale arise when a firm produces a large quantity because as the production…

Q: Evaluate the factors affecting firm behavior, such as production and costs

A: The allocation of resources in economics is determined by economic profit which relies on how much…

Q: Q. Table 3 above shows how output varies with only one variable input used in production. If the…

A: Here, the cost of one unit of labor is $500 To get the approximate marginal cost of the 230th unit…

Q: Zubair purchases material by Rs. 20,000 per year and pays R. 10,000 for storage space. He recently…

A: The profit is a term that defines the net benefit to a firm from participating in the market. It is…

Q: What are different types of costs involved in production of goods and services? Analyze the…

A: Fixed expenses, variable costs, and the total cost of production make up the cost of production. The…

Q: What is the optimization condition for economically efficient use of energy in production in the…

A: In the short run, the optimal production occurs at the following point. MR = Price of input / Price…