ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 7, Problem 3.8P
To determine
To determine:
(a)
The point at which the marginal return of labor begins to diminish is to be determined.
Concept Introduction:
Diminishing Marginal Return:
Is defined as the decrease in the marginal output of a production process with an increase in the amount of a single factor of production, while all other factors of production are kept as constant.
To determine
(b)
To determine:
The
To determine
(c)
To determine:
The firm’s fixed cost is to be determined.
To determine
(d)
To determine:
The wage rate per day is to be determined.
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12 true or false
The point at which the marginal product of a variable input is at a maximum corresponds to the point at which marginal cost is at a maximum
Question 21.21. Which would be an implicit cost for a firm? The cost
of worker wages and salaries for the firm.
paid for leasing a building for the firm.
paid for production supplies for the firm.
of wages foregone by the owner of the firm.
Question-1
The table below shows the short run cost for producing bicycles.
Complete all missing values in table below:
Marginal cost
Average total cost
Average variable cost
Average fixed cost
Total cost
Variable cost
Fixed cost
Output
Labor
0
$60
0
0
70$
$60
1
1
$140
$60
6
2
$210
$60
11
3
280$
$60
15
4
$350
$60
13
5
$420
$60
12
6
Draw the short run total cost curve (show the total cost, fixed cost, variable cost).
Where the marginal cost and average total cost intercept? Explain the relationship between the marginal cost and the average total cost with the help of graph.
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