Discuss in detail the law of diminishing returns and how it explains the shape of the short-run average cost curve. provide a graph if possible. Hand written solutions are strictly prohibited

Q: Assume that the situation can be expressed as a linear cost function. Find the cost function.…

A: The total cost function comprises of variable costs and fixed costs. The fixed costs remain the same…

Q: The long run average cost curve is U shaped because up to a certain point you have excess K/L and…

A: Total cost refers to the total amount of expenditure incurred by the firm ti produce the given…

Q: Explain the relation between average variable cost and marginal cost for both the short-run and…

A: Cost Curves show the relation between the costs that a firm incur in the process of production and…

Q: In the long run, the total cost function will be: Selected answer will be automatically saved. For…

A: Long run is the time period where no inputs are fixed instead all inputs are variable.  In short run…

Q: When marginal cost curve is below an average cost curve, marginal cost O may be increasing or…

A: There is a significant relationship between the marginal cost curve and average cost curve as the…

Q: For a production function at a given level of output in the short run, the marginal product of labor…

A: Marginal product of labor refers to the extra unit of output produced when an additional unit of…

Q: Cost is in dollars and x is the number of units. Find the marginal cost function. MC for the given…

A: Given data: Cx=700+5x+0.04x2

Q: aryan plans to offer the services for $45 per lesson, as (A) Write down the total cost as a…

A: Total cost(TC): refers to the total cost incurred by the industries in the production process. Costs…

Q: Define the economies and diseconomies of scale and depict graphically how they relate to the long…

A: There are three types of returns to scale- Economies of scale The constant return to scale…

Q: Graph the average total cost curve

A: Total Cost is defined as the total expenditure that is incurred to produce the total…

Q: Does a relationship exist between increasing returns to scale and long-run average cost? Ex with the…

A: Economies of scale or increasing returns to scale are utilized conversely; both implies to a fall in…

Q: For a short-run cost function which of the following statements is (are) not true?

A: The marginal cost function intersects the average variable cost function where the average variable…

Q: The average cost function for skateboards. AC = (q^3 - 30q^2 + 350q) / q AC = q^2 - 30q + 350 Draw…

A: The graph of the average cost function AC=q2−30q+350, along with labeled critical points and the…

Q: Draw the isoquant map for the technology q = √LK. Be precise.

A: Isoquant shows all the different combinations of the two inputs that can used in order to produce…

Q: Fill in the blanks with: (a: rising) (b: at a minimum) (c: at a maximum) (d: falling) (e: constant)…

A: Marginal cost is the measurement of change in the total cost with the increment of one unit of…

Q: Which one of the following would be regarded as a variable cost for a firm?   Select one: a. the…

A: Meaning of Variable Cost: The term variable costs are those cost which changes or fluctuates, as…

Q: How do costs vary in response to changes in the quantity of a variable input? In your own words. 250…

A: In economics, the concept of costs and their relationship with the quantity of a variable input is…

Q: Diseconomies of scale exists over the range of output for which the long run average cost curve is?

A: Diseconomies of scale exists over the range of output for which the long run average cost curve is…

Q: Explain how the long-run average cost curves will differ between a private hospital and a soft-drink…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: Explain the general shape of the long run cost curves in relation to economies and diseconomies of…

A: The shape of long run cost curve changes depending on the returns to scale.

Q: If the average variable cost is OMR 74 and total fixed cost is OMR 100 at 5 units of output, then…

A:

Q: Justify the statement. T/F  Variable cost change with the change in the level of output in a…

A: Cost is the monetary value of the resources that are given up or depleted in order to accomplish a…

Q: Give business examples of short-run costs, economies of scale, and minimum efficient scale (MES).

A: At the Mininum effiecient scale point, the company could achieve the economies of scale being…

Q: Which of the following is an example of an implicit cost? A) the cost of fuel and materials. B) the…

A: Implicit cost is also called opportunity cost. It is the cost that is incurred but not reported…

Q: Assume the following total cost function: Q Total Cost $75 1 105 2 128 What is the average fixed…

A: Average Fixed Cost (AFC): It is per unit fixed cost. It continuously decreases because the same…

Q: Find the cost function for the marginal cost function. c'(x) = 0.06 e 001x. fixed cost is S7 C(x) =|

A: We are going to find total cost function by integrating marginal cost function to answer this…

Q: how do you know the total variable is 50 when finding the total fixed cost

A: TC = AC * Q ------------------- MC is a change in TC due to changing quantity by one unit.  MCn =…

Q: What is the term for the change in total cost resulting from a one-unit increase in production?…

A: please find the answer below.

Q: Average total cost decreases when marginal cost is average tot. less than greater than equal to

A: Average cost(AC) is the division of total cost(TC) by the total quantity produced. It is the…

Q: Which of the following are relevant to a firm’s decision to increaseoutput: (a) short-run average…

A: The total cost incurred by firms operating in a market includes fixed costs and variable costs.…

Q: Total Fixed Cost (TFC), Total Variable Cost (TVC), Total Cost (TC), and the Average Total Cost (ATC)…

A: The fixed cost refers to the cost that does not change with change in level of output. On other…

Q: What is the relationship between average variable cost and marginal cost? a) They are always equal…

A: Prior to diving into the connection between average variable cost (AVC) and marginal cost (MC), it's…

Q: Fill in the blanks with: (a: rising) (b: at a minimum) (c: at a maximum) (d: falling) (e: constant)…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.