Plz try this Q 1.The hiring of labour with fixed factor of production under short run after sometimes leads toincrease in cost only. What's your opinion at what stage of production producer should makeaddition in labour, identify which concept in economics explains the whole situation, justify youranswer why it happens with the help of table and diagrams.Q2.Average cost curves (except for average fixed cost) tend to be U-shaped, decreasing and thenincreasing. Marginal cost curves have the same shape, though this may be harder to see sincemost of the marginal cost curve is increasing. Do you think that average and marginal costcurves have the same general shape and why?

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Q 1.The hiring of labour with fixed factor of production under short run after sometimes leads to increase in cost only. What's your opinion at what stage of production producer should make addition in labour, identify which concept in economics explains the whole situation, justify your answer why it happens with the help of table and diagrams.

Q 1.The hiring of labour with fixed factor of production under short run after sometimes leads to increase in cost only. What's your opinion at what stage of production producer should make addition in labour, identify which concept in economics explains the whole situation, justify your answer why it happens with the help of table and diagrams.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 33CTQ: Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then...

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A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is 1,000. What does the average fixed cost curve look like? Use your response to explain what spreading the overhead means.
Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?
How does fixed cost affect marginal cost? Why is this relationship important?
Are there fixed costs in the lung-run? Explain briefly.
Are fixed costs also sunk costs? Explain.
What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?