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What is the technological difference between straight line and strictly concave production
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- What explains the shape of the average and marginal cost curves? Is it linked to any production relationships?At what level of output is minimum efficient scale realized?How does the impact of fixed costs change production decisions in the short run and in the long run? Use the average-total-cost (ATC) model to demonstrate this impact.
- what is the importance of long run and short run production in production theory?Explain any assumptions and arguments we must use in order to conjecture that firms choose the production level that minimises their average cost under some reasonable conditions.Is it true that in a short-run production process,the marginal cost curve eventually slopes upwardbecause firms have to pay workers a higher wagerate as they produce more output? Explain your answer.
- Explain why the marginal cost of production must increased if the marginal product of the marginal resource is decreasing.What do we assume to be the goal a typical firm in the production model pursues? A. Maximized profits B. Maximized social welfare C. Highest wage to be paid D. Social justiceHow does the impact of fixed costs change production decisions in the short run and in the long run? Use the average-total-cost (ATC) model in the photo to answer