Chapter 7, Problem 6QFR

Law of diminishing returns......

Explain the 3 different stages of production.

Another important law in economics is the “law of marginal returns or the law of increasing costs". Discuss  how might you know that you are at a point of diminishing returns, or where more study will not benefit you like it did before? Identify any of the costs related to your decision about how much study is enough?

where q is the number of units produced and A is the time in months that LeAnnʹs manager has spent on the job. What happens to production costs as the manager gains more experience on the job? Is this experience-effect common in production processes?

Rafael quit his job paying him $74,000 per year to be a consultant. Last year he started a business for which he spent $7,000 on Google and Facebook advertisements and paid himself $75,000. Based on this information, what were his economic cost of this new business?

If the government says that firm X must pay 50000 in taxes simply because it in the business producing a good. What cost curves if any does this tax affects?

A few sentences for response please. Applying the concept of marginal costs, how would you, as a business owner, decide how much to produce?